Thousands of small-business loans may have been fraudulent, U.S. House panel finds

Tens of thousands of loans worth billions of dollars may have been subject to fraud, waste and abuse in the $659 billion taxpayer-funded program aimed at helping small U.S. businesses survive the coronavirus pandemic, according to a report released by Democratic lawmakers on Tuesday.

Over $1 billion from the Paycheck Protection Program (PPP) went to companies that received multiple loans, in violation of the program’s rules, the House of Representatives Select Subcommittee on the Coronavirus Crisis said.

Committee Chairman James Clyburn said the Trump administration should have done more to prevent fraud.

“Taxpayers should not have to choose between quickly getting aid to those who need it and wasting federal funds. And there are simple steps that could have been taken to improve oversight and reduce fraud,” Clyburn said.

Democrats in Congress and the Trump administration have been at loggerheads over further steps to bolster the economy after Congress approved some $3 trillion in the spring to respond to the coronavirus pandemic.