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NPR: Over $200 billion in pandemic business loans appear to be fraudulent, a watchdog says (www.npr.org)

submitted 2 years ago by sendingmath@kbin.social to c/news@kbin.social

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The Office of Inspector General of the Small Business Administration has released a "landscape of fraud" report highlighting why 17% of PPP and other loans appear bogus.

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[–] style99@kbin.social 19 points 2 years ago (3 children)

At the time, government officials said the potential economic emergency posed by the pandemic shutdowns of 2020 necessitated a quick loans — despite the likelihood of fraud.

"There is something to that argument, especially when it's applied to the very early weeks of the program," says Sam Kruger, an assistant professor of finance at the University of Texas who has studied pandemic fraud. But he says the data analysis behind this new report shows the government did have the ability to tighten up the system.

I wonder who keeps insisting on deregulating the system. That turned out to be a bad move.

[–] kestrel7@kbin.social 5 points 2 years ago

Yeah good thing we did this! Can you imagine if we didn't? There would be rampant inflation and the economy would be in shambles. Businesses would be closing left and right. Sounds like a nightmare. Really glad we avoided all of that.

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