Home » World News » SBA doled out $684M in PPP loans to ‘potentially ineligible’ nonprofits
SBA doled out $684M in PPP loans to ‘potentially ineligible’ nonprofits
PPP loans lost to fraud on massive scale
David Spunt reports on estimated $100 billion in fraud cases
A government watchdog said the Small Business Administration (SBA) handed out $684 million worth of Paycheck Protection Program (PPP) loans during the COVID-19 pandemic to scores of nonprofit organizations that may not have been eligible to receive the money.
The SBA’s Office of Inspector General (OIG) released a report Monday that 179 nonprofits may have been too large to qualify for the loans, which were designed for groups with fewer than 500 employees or were relatively small compared to others in their field. The report said one group in particular, the YMCA of the Rockies, received more than $3.5 million in PPP loans that it should not have received because it had more than 500 employees at the time it applied.
"We recommend SBA review the 179 PPP loans, totaling approximately $684 million, to ensure eligibility requirements were met and seek remedy or repayment for all loans deemed ineligible, and seek remedy or repayment of the PPP loan we reviewed for YMCA totaling $3.5 million," the OIG said.