Paycheck Protection Program Was Major Success, With Relatively Low Levels of Fraud
Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement in response to today’s House Committee on Small Business hearing on Paycheck Protection Program fraud:
“The Paycheck Protection Program is one of the most successful government programs ever created. While some scammers certainly took advantage of the program, a new Small Business Administration Office of Inspector General fraud report finds widespread fraud concerns are largely misplaced. The study estimates that there was $64 billion worth of fraud in the $800 billion program. This 8% fraud rate is lower than many standard government programs. When you exclude the fraud facilitated by fintech, the PPP fraud rate falls to only about 4%.
“One reason PPP is getting a bad rap is because the SBA’s alternate relief program, Economic Injury Disaster Loans, was rife with fraud. The SBA OIG report estimates $136 billion of this $400 billion program was fraud, a 34% fraud rate. Many commentators — and even the SBA — are improperly conflating the fraud in these two programs. In reality, the PPP performed saved America’s small business economy with a relatively low level of fraud. The criticisms it’s facing are misplaced.”
Alfredo Ortiz has an op-ed in The Hill defending the PPP. Read it here.