15% of PPP Loans Could Be Fraudulent, Study Shows

Some $76 billion of the program’s $800 billion in loans may have been taken improperly, a new paper concludes.

#banking-and-financial-institutions, #blue-acorn-ppp-llc, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #frauds-and-swindling, #small-business, #small-business-administration, #university-of-texas-at-austin

The S.B.A.’s Relief Effort For Restaurants Ends in Confusion

More than 100,000 business owners got help from the relief effort, but 265,000 were turned away — some after awards were rescinded.

#american-rescue-plan-2021, #banking-and-financial-institutions, #bars-and-nightclubs, #federal-aid-us, #restaurants, #small-business, #small-business-administration, #united-states-politics-and-government

How Two Start-ups Made a Fortune in Fees on P.P.P. Loans

Blueacorn and Womply processed one-third of all Paycheck Protection Program loans this year, stepping in when big lenders wouldn’t.

#advertising-and-marketing, #banking-and-financial-institutions, #entrepreneurship, #federal-aid-us, #online-advertising, #prices-fares-fees-and-rates, #small-business, #small-business-administration, #social-media, #stimulus-economic

Man Awaiting Trial for Covid-19 Bank Fraud Does It Again, Authorities Say

A Pennsylvania man was facing bank fraud and money laundering charges over Paycheck Protection Program loan applications when he submitted another one, U.S. prosecutors said.

#coronavirus-aid-relief-and-economic-security-act-2020, #frasinelli-randy-a, #frauds-and-swindling, #money-laundering, #pennsylvania, #small-business, #small-business-administration

Judges Halt Race and Gender Priority for Restaurant Relief Grants

Approvals for thousands of Restaurant Revitalization Fund applicants were rescinded after court orders struck down a policy that favored historically underserved groups.

#coronavirus-2019-ncov, #minorities, #oconnor-reed, #race-and-ethnicity, #restaurants, #small-business, #small-business-administration, #stimulus-economic, #suits-and-litigation-civil, #tennessee, #texas

Some Venue Owners Get a Federal Lifeline. Others Are Told They’re Dead.

The first applications for the Shuttered Venue Operators Grant program, offering $16 billion in federal aid, were approved.

#bars-and-nightclubs, #bend-ore, #bowery-ballroom, #bridgeport-conn, #broadway-league, #carnegie-hall, #coronavirus-2019-ncov, #federal-aid-us, #mercury-lounge, #music, #new-york-city, #new-york-city-ballet, #senate, #shuttered-venue-operators-grants, #small-business-administration, #social-security-administration, #stimulus-economic, #theater

The Small Business Administration’s Gaffes Are Now Her Job to Fix

Traditionally a federal backwater, the agency has stumbled while shepherding $1 trillion in emergency aid. Its leader vows “a more customer-first approach.”

#appointments-and-executive-changes, #content-type-personal-profile, #contreras-sweet-maria, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #guzman-isabella-casillas, #small-business, #small-business-administration, #stimulus-economic, #united-states-politics-and-government

As Paycheck Protection Program Runs Dry, Desperation Grows

Overwhelmed lenders and panicking borrowers are in a frenzy to grab the remaining money in the small business relief program.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #small-business, #small-business-administration, #stimulus-economic, #united-states-economy, #united-states-politics-and-government

Shuttered Venue Grant Reopening Pushed Back to Monday

The Small Business Administration’s earlier announcement that applications would open on Saturday was met with a deluge of criticism.

#coronavirus-2019-ncov, #small-business, #small-business-administration

U.S. Readies Small-Business Grants as P.P.P. Nears End

New programs for restaurants and live-event businesses will soon start taking applications as the Paycheck Protection Program winds down.

#american-rescue-plan-2021, #coronavirus-2019-ncov, #federal-aid-us, #food-trucks-and-vendors, #national-independent-venue-assn, #restaurants, #small-business, #small-business-administration

Cultural Venues’ Quest for Billions in Federal Aid Is Halted by Glitch

On the first day nightclubs, movie theaters and other arts organizations hurt by the pandemic could apply for $16 billion in federal aid, the system malfunctioned. No applications got through.

#coronavirus-2019-ncov, #coronavirus-reopenings, #culture-arts, #federal-aid-us, #music, #quarantine-life-and-culture, #shutdowns-institutional, #shuttered-venue-operators-grant, #small-business, #small-business-administration, #stimulus-economic

Minority Entrepreneurs Struggled to Get Small-Business Relief Loans

A year after the Paycheck Protection Program started, studies show how its design hurt Black- and other minority-owned businesses.

#american-rescue-plan-2021, #banking-and-financial-institutions, #black-people, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #hispanic-americans, #income-inequality, #minorities, #paycheck-protection-program, #race-and-ethnicity, #small-business, #small-business-administration, #stimulus-economic

Looming Deadline and Last-Minute Changes Hinder Small-Business Relief

Lenders are struggling with a new Paycheck Protection Program rule intended to get more money to sole proprietors — and some banks are simply refusing to make the change.

#bank-of-america-corporation, #cardin-benjamin-l, #coronavirus-aid-relief-and-economic-security-act-2020, #jpmorgan-chasecompany, #small-business, #small-business-administration, #velazquez-nydia-m

Biden Changes P.P.P. Rules for Self-Employed People, Pauses Some Applications

A more generous loan formula for solo ventures is meant to get more very small businesses into the Paycheck Protection Program. But bigger applicants face a two-week pause.

#biden-joseph-r-jr, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #freelancing-self-employment-and-independent-contracting, #minorities, #small-business, #small-business-administration, #united-states-politics-and-government

Fraud Checks and Errors Slow Small-Business Relief Loans

The renewed Paycheck Protection Program has disbursed $134 billion this year, but many applicants have had to wait weeks for lenders to resolve problems.

#coronavirus-aid-relief-and-economic-security-act-2020, #paycheck-protection-program, #small-business, #small-business-administration

Federal Aid for Closed Cultural Venues Will Be a Race for Cash

Tens of thousands of eligible music clubs, theaters, museums and other spaces may overwhelm a $15 billion grant fund run by the Small Business Administration.

#cornyn-john, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #culture-arts, #federal-aid-us, #music, #national-independent-venue-assn, #quarantine-life-and-culture, #shutdowns-institutional, #shuttered-venue-operators-grant, #small-business, #small-business-administration, #stimulus-economic, #theater, #united-states-economy, #united-states-politics-and-government

PPP Loans Q&A: Who Qualifies for a Second Round?

The hardest-hit owners will be eligible for another loan from the Paycheck Protection Program.

#coronavirus-2019-ncov, #federal-aid-us, #small-business, #small-business-administration, #stimulus-economic

‘It Was a Joke’: Some Small Businesses Got $1 Relief Loans

Sole proprietors were eligible for loans under the Paycheck Protection Program only if they were profitable, but many got tiny loans because of the way rules were written.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #internal-revenue-service, #small-business, #small-business-administration, #stimulus-economic

When Can I Apply for a P.P.P. Loan?

A small group of lenders that focus on underserved borrowers will get priority when the Paycheck Protection Program resumes.

#banking-and-financial-institutions, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #minorities, #small-business, #small-business-administration, #stimulus-economic

Biden Selects Heads of Labor, Commerce and Small Business Agencies

With his victory secured, the president-elect is moving to fill out his economic team.

#appointments-and-executive-changes, #biden-joseph-r-jr, #commerce-department, #content-type-personal-profile, #guzman-isabel-c, #labor-department-us, #presidential-transition-us, #raimondo-gina-m, #small-business-administration, #united-states-politics-and-government, #walsh-martin-j

How Pandemic Aid Attracted Hordes of Gleeful and Gutsy Scammers

The Paycheck Protection Program offered small businesses a few months of relief, but prosecutors will be running down fraud for years.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #frauds-and-swindling, #small-business-administration, #stimulus-economic

P.P.P. Loan Data Shows How a Sliver of Borrowers Got Much of the Help

Just 1 percent of borrowers received more than a quarter of the money given out in the form of forgivable loans.

#boies-schillerflexner, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #kasowitz-benson-torres-llp, #labor-and-jobs, #layoffs-and-job-reductions, #small-business, #small-business-administration, #stimulus-economic, #tgi-friday

Racism Impoverishes the Whole Economy

While the targets unquestionably suffer the most, denying people equal opportunities diminishes the finances of millions of Americans.

#bell-laboratories, #black-people, #boards-of-directors, #civil-rights-movement-1954-68, #colleges-and-universities, #discrimination, #education-k-12, #forbes-magazine, #gross-domestic-product, #hispanic-americans, #income-inequality, #innovation, #inventions-and-patents, #michigan-state-university, #minorities, #musk-elon, #race-and-ethnicity, #research, #scholarships-and-fellowships, #small-business-administration, #united-states-economy, #venture-capital, #wages-and-salaries, #women-and-girls

Small-Business Loans Will Be Forgiven, but Don’t Ask How

Owners are flummoxed by how the loan forgiveness phase of the Paycheck Protection Program will work, as lenders await clarity and guidance.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #small-business, #small-business-administration, #treasury-department

Justice Dept. Announces Dozens of Fraud Charges in Small-Business Aid Program

Fifty-seven people were charged with trying to steal more than $175 million from the Paycheck Protection Program, law enforcement officials said.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #frauds-and-swindling, #jpmorgan-chasecompany, #justice-department, #small-business, #small-business-administration, #stimulus-economic, #united-states-politics-and-government

Spotting $62 Million in Alleged P.P.P. Fraud Was the Easy Part

Investigators have charged big spenders with cheating the Paycheck Protection Program for small businesses. But more fraud lies below the surface, and it’ll be harder to find.

#federal-aid-us, #frauds-and-swindling, #inspectors-general, #paycheck-protection-program, #small-business, #small-business-administration, #treasury-department

Amid Dire Jobless Numbers, Small-Business Relief Program Nears End

The Paycheck Protection Program provided respite for hard-hit small businesses, but it is ending soon. With no word on further government help, owners worry about their fate.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #layoffs-and-job-reductions, #small-business, #small-business-administration, #united-states-economy

Small Businesses Got Emergency Loans, but Not What They Expected

The S.B.A.’s disaster relief program allows for loans of up to $2 million. But now they’re capped at $150,000 — and agency officials are saying little about why.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-aid-us, #small-business, #small-business-administration, #united-states-politics-and-government

For Owners of Century-Old Businesses, Shutting Down Brings a Special Pain

A department store, a barbecue restaurant, a hotel — all had survived some of the biggest trials in history. Their owners are mourning the loss of a legacy.

#coronavirus-2019-ncov, #coronavirus-reopenings, #family-business, #harrell-vernon, #harrells-department-store, #hyman-amy, #lake-steam-baths, #recession-and-depression, #shutdowns-institutional, #small-business, #small-business-administration

Coronavirus Surge Is Killing America’s Small Businesses

More owners are permanently shutting their doors after new lockdown orders, realizing that there may be no end in sight to the crisis.

#california, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #coronavirus-reopenings, #federal-aid-us, #paycheck-protection-program, #quarantines, #shutdowns-institutional, #small-business, #small-business-administration, #texas

When Washington Helped Small Business, Washington Was Helped

The loan program to help firms keep paying their workers had many beneficiaries. Among them was the capital’s permanent political class.

#biden-joseph-r-jr, #campaign-finance, #consultants, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #lobbying-and-lobbyists, #political-action-committees, #presidential-election-of-2020, #shutdowns-institutional, #small-business, #small-business-administration, #think-tanks, #trump-donald-j, #united-states-economy, #united-states-politics-and-government, #washington-dc

Who Received P.P.P. Rescue Loans?

We now know the names of many of the businesses that received $521 billion in small-business rescue loans. Some of the recipients will raise eyebrows.

#bird-rides-inc, #colleges-and-universities, #coronavirus-2019-ncov, #coronavirus-reopenings, #palantir-technologies, #small-business-administration

Lobbyists, Law Firms and Trade Groups Took Small-Business Loans

The Trump administration began releasing details of which businesses received Paycheck Protection Program aid.

#coronavirus-aid-relief-and-economic-security-act-2020, #labor-and-jobs, #mnuchin-steven-t, #small-business, #small-business-administration, #treasury-department, #united-states-economy, #united-states-politics-and-government, #wages-and-salaries

Congress Extends Small Business Loan Program for 5 Weeks

The House cleared the extension, which would give companies more time to apply for pandemic relief loans, sending it to the White House for President Trump’s signature.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #coronavirus-reopenings, #federal-aid-us, #house-of-representatives, #law-and-legislation, #mnuchin-steven-t, #shutdowns-institutional, #small-business, #small-business-administration, #treasury-department, #united-states-economy, #united-states-politics-and-government

Paycheck Protection Program, Signature Small Business Aid Effort, Ends

The program distributed forgivable loans to five million small businesses that could use the money to pay workers to stay home. But shifting rules blunted its effect.

#coronavirus-aid-relief-and-economic-security-act-2020, #labor-and-jobs, #layoffs-and-job-reductions, #small-business, #small-business-administration, #united-states-economy

The Tiny Bank That Got Pandemic Aid to 100,000 Small Businesses

Cross River has cranked out more loans under the federal Paycheck Protection Program than all but three of the country’s biggest lenders.

#banking-and-financial-institutions, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #cross-river-bank, #small-business, #small-business-administration

$130 Billion in Small-Business Aid Still Hasn’t Been Used

Owners are becoming reluctant to borrow from the federal Paycheck Protection Program. Some are even returning money.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #small-business, #small-business-administration

Don’t Bar Ex-Offenders From Coronavirus Aid Funds

The Trump administration unilaterally excluded those with criminal records from loan programs. The decision should be reversed.

#brennan-center-for-justice, #coronavirus-2019-ncov, #criminal-justice, #mnuchin-steven-t, #prisons-and-prisoners, #small-business, #small-business-administration, #treasury-department, #trump-donald-j

Can Coney Island Survive This?

A dismal season is predicted. If there is one at all.

#amusement-and-theme-parks, #beaches, #central-amusement-international, #coney-island-brooklyn-ny, #coney-island-mermaid-parade, #coney-island-usa, #coronavirus-reopenings, #historic-buildings-and-sites, #lola-star-brooklyn-ny-retailer, #memorial-day, #small-business-administration, #summer-season

Is a Pandemic the Right Time to Start a Business? It Just Might Be

Previous financial crises gave rise to high-profile American companies. The spread of the coronavirus challenges entrepreneurs to meet new needs.

#coronavirus-2019-ncov, #entrepreneurship, #fields-shanel, #huynh-ngoc, #menon-rashmi, #philadelphia-pa, #salt-city-market-syracuse-ny, #small-business, #small-business-administration, #start-ups, #syracuse-ny, #united-states

As Banks Stumble in Delivering Aid, Congress Weighs Other Options

Accounts provided by the Federal Reserve and distributions handled by payroll processors are among the ideas floating around Capitol Hill.

#bank-of-america-corporation, #banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #house-of-representatives, #internal-revenue-service, #law-and-legislation, #shutdowns-institutional, #small-business, #small-business-administration, #unemployment, #unemployment-insurance, #united-states-economy, #united-states-politics-and-government, #wages-and-salaries

Small Businesses Counting on Loan Forgiveness Could Be Stuck With Debt

Business owners who took out loans under the Paycheck Protection Program thought converting them to grants would be easy. It’s not.

#coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #economic-conditions-and-trends, #independent-community-bankers-of-america, #shutdowns-institutional, #small-business, #small-business-administration, #treasury-department, #united-states-economy, #wages-and-salaries

Hotel Group Will Return Tens of Millions in Small Business Loans

Ashford Inc., which has come under scrutiny after receiving at least $70 million in Paycheck Protection Program loans, said on Saturday that it would return the money.

#ashford-inc, #bennett-monty-j, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #hotels-and-travel-lodgings, #paycheck-protection-program, #small-business-administration

Some Small Businesses That Got Aid Fear the Rules Too Much to Spend It

Requirements for using federal coronavirus loans are complicated and confusing for owners. “It’s chaos,” one lawyer said.

#blazing-fresh-donuts, #coronavirus-aid-relief-and-economic-security-act-2020, #layoffs-and-job-reductions, #lovell-liliana, #scissors-and-scotch, #small-business, #small-business-administration, #urban-homecraft

When Does a Small Business File for Bankruptcy? Questions and Answers

The coronavirus is expected to permanently shut millions of small businesses in the next several months. Here are issues for owners to consider.

#bankruptcies, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #shutdowns-institutional, #small-business, #small-business-administration

Bankers Scold S.B.A. as Loan System Crashes in Flood of Applications

The government started taking applications Monday for a further $310 billion in emergency funds, and quickly ran into technical problems.

#american-bankers-assn, #banking-and-financial-institutions, #citigroup-inc, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #midwest-savings-bank, #small-business, #small-business-administration

Start-Ups Pursue ‘Free Money’ With Relief Funds, Prompting Backlash

Some young companies have turned to the government loans not for day-to-day survival but simply to buy useful time.

#computers-and-the-internet, #coronavirus-aid-relief-and-economic-security-act-2020, #layoffs-and-job-reductions, #lobbying-and-lobbyists, #national-venture-capital-assn, #silicon-valley-bank, #small-business, #small-business-administration, #start-ups, #venture-capital

Large, Troubled Companies Got Bailout Money in Small-Business Loan Program

Companies with accounting problems or in trouble with the government received millions in federal loans.

#appointments-and-executive-changes, #banking-and-financial-institutions, #continental-materials-corporation, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #cpi-aerostructures-inc, #executive-compensation, #harvard-bioscience-inc, #shake-shack-inc, #shutdowns-institutional, #small-business, #small-business-administration, #united-states-economy

Small-Business Loan Program, Chaotic From Start, Gets 2nd Round

The Paycheck Protection Program distributed $349 billion in less than two weeks, but lenders and borrowers confronted confusion at every step.

#bancfirst-corporation, #banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #independent-community-bankers-of-america, #labor-and-jobs, #layoffs-and-job-reductions, #mnuchin-steven-t, #pomeroy-naomi-1974, #small-business, #small-business-administration, #treasury-department, #united-states-economy, #united-states-politics-and-government, #wages-and-salaries

Opposed to Bailouts, but in This Case Willing to Take One

Some conservative nonprofit groups are seeking financial help to weather the coronavirus crisis. Some liberal organizations are putting aside different qualms to make the same request.

#american-civil-liberties-union, #campaign-finance, #cato-institute, #congressional-progressive-caucus, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #democracy-alliance, #freedomworks, #layoffs-and-job-reductions, #media-matters-for-america, #nonprofit-organizations, #philanthropy, #presidential-election-of-2020, #romero-anthony-d, #small-business, #small-business-administration, #trump-donald-j, #united-states-politics-and-government