WASHINGTON—Lenders say many small businesses applying for additional help under the government’s coronavirus relief program are finding that efforts to combat fraud are throwing up obstacles to getting money they need to help stay afloat.
Now, the Small Business Administration, which runs the Paycheck Protection Program, says help is on the way. The issue is tied to flags the Small Business Administration placed on roughly 240,000 initial PPP recipients for everything from clerical errors to indications of possible wrongdoing. Those flags are blocking lenders’ ability to move forward second loans for the borrowers, after“If you’ve got your fraud mitigation hat on, that’s not all bad,” said Tony Wilkinson, chief executive of the National Association of Government Guaranteed Lenders trade group.
The SBA says it is working to remove the roadblocks. It is holding a national call Tuesday afternoon to help participating PPP lenders understand how to resolve the flags.
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Needs must ....when some of these lot are using covid relief money for new 'whips and hos'....even brothels don't have prostitutes on payroll...last time I checked those are not allowable deductibles under any tax regime...fraud protection is a must
good