SBA Inspector General Warns of ‘Widespread’ Fraud in COVID-19 Loan Program

According to the U.S. Small Business Administration Office of the Inspector General, potential fraudsters have obtained $250 million in federal funds intended to help businesses survive the impact of COVID-19.

The Inspector General also identified $45.6 million in potentially duplicate payments and warned that with well over $220 billion left to give out, rapid changes were needed.

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Protester Goes Seven for Seven in Arguments Before GAO

Veterans of the bid protest process know that it’s not uncommon for a protester to make half a dozen arguments and prevail on only one.

Know what that’s called? A win. But when a protester goes seven for seven, you have to tip your cap.

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COVID-19 Lockdown No Excuse for Late Filing, GAO says

In a recent bid protest decision, GAO said being under a COVID-19 “Stay at Home Order” was no reason to miss a comments filing deadline.

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Congress Changes the Rules on PPP Loan Forgiveness, but Questions Remain

Newly passed changes to the Paycheck Protection Program are designed to make it easier for small businesses to have their loans forgiven.

The Paycheck Protection Program has been around since the end of March and provides funds for small businesses to retain employees and keep operating during the global coronavirus pandemic. If used properly, the business should have all or a portion of the loan forgiven. The new law eases some of the restrictions on how that money can be spent.

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YouTube Tuesday: Calculating the Size of Your Business

In a recent YouTube video, we discussed how the federal government calculates business size. Today’s video provides additional information on how to calculate the size of your business through annual receipts:

For more information, check out Volume 2 of the Koprince Law, LLC GovCon Handbooks Series, SBA Small Business Size and Affiliation Rules, or contact us here.

SBA: It’s (Maybe) Fine if You Didn’t Count the Employees of Your Foreign Affiliates for PPP Purposes

In what might be a classic “now you tell me” scenario, the SBA issued a new rule May 21 saying that if an applicant failed to count the employees of its foreign affiliates when it was determining its eligibility, the SBA will not hold that against the applicant so long as the application was submitted before the SBA clarified that requirement.

The problem with that, however, is that because the safe harbor ended May 18, it’s highly likely that a lot of those businesses already gave their PPP loan back. They’d be forgiven for thinking they had to, as earlier this month Sen. Marco Rubio was indicating that Congress would investigate companies who took PPP funds for which they weren’t eligible.

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What Happens When a Company Takes a PPP Loan it Doesn’t Need?

As we said in this space a few days ago, the SBA has put in place a safe harbor until May 14 for companies to return Paycheck Protection Program loan money if they find they don’t need it. No harm, no foul.

So, what happens if they don’t need it, but don’t return it? Maybe Clubber Lang said it best.

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