Mnuchin suggests Treasury, SBA should forgo verifying how small business loans were spent
Source: Washington Post
Treasury Secretary Steven Mnuchin suggested Friday that the government should consider forgiving all taxpayer-backed small loans under the federal Paycheck Protection Program without verifying how the funds were used, a decision that could wipe away debt for millions of small businesses but would also substantially increase the risk of fraud.
The Treasury Department and Small Business Administration are grappling with how to handle millions of applications for loan forgiveness, a process that includes verifying that most of the funds were actually used to pay employees as required under the Cares Act. But Mnuchin seemed to suggest during a congressional hearing Friday that a case-by-case approval process should be waived entirely for loans below a certain threshold.
One of the things well talk about is should we just have forgiveness for all the small loans
I think thats something we should consider, Mnuchin said when asked by Rep. Steve Chabot (R-OH) how the process might be simplified.
We should obviously make sure there is some fraud protection, Mnuchin added.
-snip-
By Aaron Gregg
7/17/2020, 1:17:32 p.m.
Read more: https://www.washingtonpost.com/business/2020/07/17/congress-ppp-hearing-mnuchin/
SWBTATTReg
(22,166 posts)verifying that in fact, the loans were used as they should be)? Sounds kind of corrupt, doesn't it?
nakocal
(555 posts)for the illegal loans that were made to the Trump family and their allies.
cstanleytech
(26,319 posts)If not he really should consider doing so now as I suspect there will be number of other people fleeing the country to escape potential criminal charges as well.
lettucebe
(2,336 posts)Frustratedlady
(16,254 posts)Aren't some forgivable?
No, we've lost too much oversight with this group in the WH and, if nothing else, a sensible sampling should be done to ensure a good percentage of the loans were valid and handled legitimately. Too many chances for fraud.
I would take Katie Porter's opinion as more logical than Mnunchin's. It's like asking the fox to guard the chicken house.
irisblue
(33,023 posts)bucolic_frolic
(43,284 posts)mahatmakanejeeves
(57,600 posts)go looking for trouble with all those schedules and forms and adding and subtracting and numbers and whatnot?
What's wrong with rounding down to the nearest $10,000?
LastLiberal in PalmSprings
(12,592 posts)JDC
(10,133 posts)Jopin Klobe
(779 posts).. that forgiving underwater loans created by the 2008 Wall Street robbery would be a MORAL HAZARD!!!! ... ? ...
... well, I guess if one has no morals to begin with ...
... then there ain't no hazard ...