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.
All of us Koprince Law are experts in the field of government contracting. But Senior Associate Ian Patterson has now been recognized by Congress for his prowess in the field, as he will testify before Congress on June 24. Read on for the details on this exciting event.
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.
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.
On May 15, SBA released the Paycheck Protection Program Loan Forgiveness Application. Because loan forgiveness was a huge component of Paycheck Protection Program, the application is hugely important. While this post won’t do a deep dive into the loan forgiveness rules, we wanted to bring this to the attention of our blog readers.