First appearance on Fox: DOGE's top senator says he was warned by a government watchdog that default rates on coronavirus-era PPP loans were “alarming” and now wants to hold fraudsters accountable He said he was thinking of doing so.
In a letter to U.S. Sen. Joni Ernst (R-Iowa), Brian Miller, Inspector General for Pandemic Recovery (SIGPR), said in a letter to U.S. Sen. Joni Ernst (R-Iowa) that losses from financing the loan program would be $1.27 billion as of November 2024. It was reported to be $1,000,000 and has snowballed since the debtors' first payments started coming due. In July 2023.
“Without SIGPR to protect taxpayers, there will be no one to keep watch and we will allow this crisis to continue,” Miller wrote.
“Equally concerning is the alarming rate of defaults by borrowers who do not even pay interest on their Main Street Lending Program (MSLP) and Direct Loan Program loans.”
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PPP Loan Application Page for Financial Assistance Due to the Coronavirus Pandemic in New York. May 7, 2020. (Reuters/Lucas Jackson)
The inspector general added that the office is “downsizing” and taking legally required steps as a government agency to prepare for closure.
At least 130 potential defendants have been identified for investigation, but without adequate resources the investigation will never be possible.
Ernst warned that if the bill is not passed, fraudulent loan applicants could get away with $200 billion in COVID-19 relief funding.
Sen. Joni Ernst (R-Iowa) has authored a bill that would provide additional resources to hold coronavirus pandemic scammers accountable. (Reuters/Bonnie Cash)
“Scammers have taken advantage of the suffering of small businesses during the coronavirus pandemic to defraud government programs designed to help hardworking Americans,” Ernst said Wednesday.
“We are $36 trillion in debt, and we cannot afford to leave more than $200 billion floating around, especially in the hands of fraudsters. We are making every resource available to the fight.'' Retract and hold these criminals accountable. ”
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When the Small Business Administration launched the Restaurant Revitalization Fund and Paycheck Protection Program (PPP) loans, they were on a “first come, first served” basis.
As a result, many eligible businesses and organizations were turned away, leading to a surge in reports of gang members and drug traffickers being given access to the resources instead, critics claimed at the time.
One scammer used a photo of a Barbie doll as identification information on an SBA loan application, and another scammer used a photo of a Barbie doll as identification information for an SBA loan application, while another scammer used photos of Barbie dolls to identify potential donations to struggling restaurants, especially in states with strict closure policies. A certain $8 million was raised.
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In response, Ernst drafted a complete coronavirus recovery law, Fox News Digital has learned.
The bill would extend SIGPR's authorization through 2030 and expand its jurisdiction to cover other SBA coronavirus-related programs. As of Wednesday, SIGPR is only authorized through September.
The proposal also directs the Treasury Department to enforce recovery on loans under $100,000 with the same rigor as those on suspected high-value loans or those who are delinquent.
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It also involves the Department of Justice, requiring law enforcement agencies to regularly report to Congress on activities related to pandemic-focused programs, including prosecutions, recovery of funds, and referrals to the Department from other agencies. There is.
By Wednesday afternoon, Ernst's bill had been co-sponsored by four other Republicans. Sen. Marsha Blackburn of Tennessee, Sen. Todd Young of Indiana, Sen. James Lankford of Oklahoma, and Sen. John Curtis of Utah, who just took over after Mitt Romney's resignation. be.
