Corresponding föderalpay.org, a non-governmental public resource website that tracked PPP loan approvals, “The total PPP loan an eligible business or individual can receive is based on 2.5 times their average monthly payroll in 2019, capped at $ 100,000 per employee annually. “
There have been concerns about abuse of the PPP program since the idea was proposed. The federal government worked hard to get companies to prevent them from closing, which resulted in banks and other lenders handing out money to fraudulent companies.
The Justice Department reported Wednesday: “Since the PPP began, lawyers for the fraud department have prosecuted more than 100 defendants in more than 70 criminal cases. The fraud department has also confiscated more than $ 65 million in cash proceeds from fraudulently obtained PPP funds, as well as numerous real estate and luxury goods purchased with those proceeds.
In a telephone interview Thursday, Rachel Apple, Wisconsin District Office spokesperson for the US Small Business Administration said, “The Department of Justice has followed a number of cases involving people who have used PPP funds … (for personal or criminal purposes) instead of for business purposes. “
She added in an email, “It has long been a policy of the SBA not to comment on individual borrowers. PPP was offered through lenders with delegated powers and the SBA guaranteed the loans granted by those lenders … However, the lender’s approval does not reflect the SBA’s determination that the borrower is eligible for a PPP loan or that the borrower is eligible for loan waiver. The SBA takes fraud seriously and all complaints are investigated and prosecuted to the full extent of the law. “