Whether we want to or not, the country will continue to feel the effects of the COVID-19 pandemic for years to come in a multitude of ways. Many actions were taken by the government in the early days to help United States’ citizens through the largely unprecedented times, particularly to help support small businesses. As I’m sure many small business owners would say, the assistance offered through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program was critical to small business owners who, in the early days of 2020, were suddenly facing an unknown future. As closures and restrictions were put into place from every level of government in a bid to try to protect Americans from the novel virus, hospitals and their staff, doctors, and scientists all scrambled to contain the virus and determine the best path forward.
PPP and EIDL applications flooded the SBA in the hopes that the assistance offered through these programs would help to prevent millions of small businesses from sinking under the weight of the pandemic. Unfortunately, the roughly $1.2 trillion in assistance provided by the programs, while good-intentioned and critical to many small business owners’ chances of survival, was not immune to massive levels of fraud. In a report released on January 30, 2023, the Pandemic Response Accountability Committee (PRAC) details a breakdown of the fraud, what is being done about it, and safeguards to help prevent it from happening again.Continue reading