House report claims fintechs processed billions in fraudulent PPP loans - Jacksonville Business Journal

Several of the Small Business Administration’s biggest Paycheck Protection Program processors and application screeners approved tens of billions of dollars in fraudulent loans, often ignoring or disregarding warnings from customers and employees,Rep. James Clyburn, D-S.C., head of the select subcommittee, said in a press release that many fintechs refused to take adequate steps to detect and prevent fraud while disbursing billions in relief loans.

Clyburn said he has asked watchdog agencies such as the SBA Office of Inspector General and the Department of Justice, to follow up on the findings. As we've noted, federal agencies have already saidHouse PPP report takes aim at specific fintechs, including Kabbage Inc., Bluevine Inc., Blueacorn PPP LLC and Womply Inc.

The report claims Kabbage approved loans with likely indicators of fraud, partly because the program imposed minimal risk on lenders who approved questionable applications. In one exchange, a Kabbage risk manager supervising fraud specialists told his team “a fundamental difference” between the level of diligence applied in the PPP, as opposed to normal lending by Kabbage, was that “the risk here is not ours – it is SBA’s risk.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Brucci's Pizza closes in Jacksonville - Jacksonville Business JournalBrucci's Pizza owner says inflation and local economy forced shutdown.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

Why Gen Z will be a challenge for your business - Jacksonville Business JournalAs with any new generation that enters the workforce, managers have been flummoxed by Gen Z. Experts say many businesses have a serious Gen Z problem they'll have to address to be successful, but it has nothing to do with the generation's vocal opinions, its willingness to change jobs or its work ethic.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

Community colleges scramble to find students amid enrollment crisis - Jacksonville Business JournalWith 827,000 fewer students since the start of the pandemic, the nation’s community colleges are scrambling to find students.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

Mr. Potato Spread to open in River City Marketplace - Jacksonville Business JournalPopular restaurant brand is adding corporate and franchise locations.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

DDRB: Jones Bros. adaptive reuse up for final approval - Jacksonville Business JournalA seven-story, mixed-use building has been proposed with 148 apartment units and 8,807 square feet of commercial space planned.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

Artist behind Blackfly the Restaurant keeps looking for ways to grow brand - Jacksonville Business JournalVaughn Cochran has built a following based on his love for fishing, fine food and painting.
Source: JaxBizJournal - 🏆 599. / 51 Read more »