The Small Business Administration (SBA) distributed huge sums of money through its Paycheck Protection Program (PPP) as a way to keep small businesses afloat during the COVID pandemic.
While not every recipient was on the level, the Biden administration has decided to forgive many loans that were obtained through fraud.
SBA will not collect on loans worth $100,000 or less
According to the Daily Wire, the SBA’s inspector general released a report this past September criticizing its decision not to collect on loans worth $100,000 or less.
“SBA is potentially increasing the taxpayer burden by missing the opportunity to collect on these delinquent PPP loans,” the report read, adding that there is as much as $800 billion at stake.
What’s more, the inspector general’s report warned that failure to take action will only promote more fraudulent behavior.
“Ending collections could set a precedence for future stimulus programs and incentivize ineligible borrowers to obtain loans valued at $100,000 or less,” it said.
“Equitable treatment” cited as the reason for loan policy
“However, continuing to pursue collections will help ensure accountability from delinquent borrowers and promote program integrity,” the report stressed.
The report went on to explain that although government agencies are permitted to write off bad loans in instances where collection efforts would cost more than the amount to be recovered, the SBA had a different motive for its actions.
“SBA’s rationale for the decision was to provide equitable treatment between smaller sole proprietor borrowers not protected by an incorporation shield and larger incorporated borrowers,” the inspector general stated.
The report found “no evidence that SBA made any attempts to collect on” the bad loans in question, something which “is not in compliance with applicable criteria.”
Alleged call girl linked to Hunter Biden received over $20,000 in PPP loan
The Daily Wire noted that one questionable PPP loan involved an alleged call girl tied to Hunter Biden who got over $20,000.
Cheryl Deboves applied on behalf of a “female owned sole proprietorship” under the category of “Independent Artists, Writers, and Performers.”
The website stated that messages discovered on Biden’s abandoned laptop show he tasked her with recruiting other prostitutes as well as purchasing narcotics and associated paraphernalia.
Other messages indicate that Deboyes was at one point targeted by drug dealers, with one reading, “Eric keeps threatening me, and now he has someone named Keaton threatening me too who just got out of prison or whatever.”
“Can you please help me?” the alleged prostitute asked Biden, adding, “Like he scares me a lot. I hate it when men threaten women.”