SBA statement on House committee report on PPP fraud

The SBA has issued a statement regarding the findings from the House Select Subcommittee on the Coronavirus Crisis report on Paycheck Protection Program (PPP) fraud.

"The House Select Subcommittee report details serious problems of fraud and self-dealing by lenders and by companies who were paid fees by lenders to help PPP funds reach small business owners. In response to new revelations detailed in the report of possible fraud facilitated by third-party companies, the Small Business Administration (SBA) is taking additional action.

"The SBA has immediately suspended non-lenders Blueacorn and Womply, companies that worked with PPP lenders, from working with the SBA in any capacity. The SBA will be investigating appropriate action against their management, owners, and successor companies. In addition to the actions announced today, SBA launched a full investigation of the lenders -- Benworth, Capital Plus, Celtic Bank, Customers Bank, Cross River Bank, Fountainhead, Harvest, and Prestamos -- as well as the individuals and other related entities named in the report....

"As part of the investigation, the SBA will work with federal partner agencies including the Consumer Financial Protection Bureau, the U.S. Department of the Treasury, Federal Deposit Insurance Corporation, Federal Reserve Board and the Office of the Comptroller of the Currency to ensure that federal financial regulators have a coordinated response to wrongdoing by lenders."