Small business watchdog releases inquiry into loans

Published:

On: Jul 2020

According to the news, the United States small business administration’s internal watchdog has currently issued an inquiry into a technical defect that ultimately led several small businesses to gather duplicate loans with the help of a high-profile federal reserve’s coronavirus aid scheme. 

An executive for the Small Business Administration (SBA) office of the inspector general finalized that the office has started a review of the problem, which reported previous month may have led to huge amount in duplicate loans that are being confirmed under the $660 billion Paycheck Protection Program (PPP). The review comes after American Representative James Clyburn has pressed the internal watchdog of SBA in a letter to investigate the problem.

Mr. Clyburn said that, the duplicate loans issue may have generated important opportunities for scam and wastes over $100 million in taxpayer dollars. He further said that it was extremely difficult to probe the problem as soon as possible. Major representatives of the SBA did not respond instantly to a request for comment on yesterday. The SBA released the program on 3rd of April in order to help keep employees at struggling businesses operated. In the race to acquire funds out the door, the scheme encountered technology, fairness problems as well as paperwork.