A Federal Program to help Small Business hurt by the Covid-19 Pandemic, may have sent more than $1 Billion to places that should Not have received the Grants, for different reasons.
In some parts of the Country, the Small Business Administration (SBA) Approved far more $10,000 Economic Injury Disaster Loan (EIDL) Grants, than the Number of Eligible Businesses. The Epic Center was Six adjacent Congressional Districts in the Chicago area, where 81,000 Grants were Approved even though there are Only 19,000 Eligible Businesses.
There were 52 Congressional Districts across the Nation where the Number of $10,000 Grants Exceeded Eligible Businesses, for a Total of $1.3 Billion in Suspect Payments. Districts in: Florida; Georgia; Texas; and other States had the same Problem.
The SBA Inspector General, Hannibal
MikeWare, said its Anti-Fraud Safeguards found $47.8 Million, in a Preliminary Report, that Prevented the Processing of Thousands of Invalid Applications.
Ware said the EDIDL Grant Program inspired several types of Scams:
- Criminals Recruit People by Offering to help obtain the Grant in Exchange for a Fee. Each Recruit had to provide ID and Bank Account Information without understanding this was Illegal. The Scammers then used the Information to submit the Phony Applications. Ware said he and other Law Enforcement Partners shut Websites and Call Centers that was set-up to troll for Recruits.
- An Automated System Rejected $8.8 Billion in Grants because they were identified as Duplicates.
- It Denied $9 Billion because Applicants Identities didn't Check-Out or Didn't Match Bank Information.
- Was able to Identify Fraud Applications by Examining the Employee Tax ID on Applications. Businesses were supposed to have been in Operation as of January 31st to Qualify. He found 20,962 Recipients got ID Numbers after that Date, and Recovered $208 Million.
Across the Nation, about 57% of Eligible Small Businesses got their Grants.
NYC Wins When Everyone Can Vote! Michael H. Drucker
No comments:
Post a Comment