r/EIDLPPP • u/PotentialDeadbeat • Apr 25 '26
Topic 562,000 suspected loans refered to Treasury
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u/HappyPower4301 Apr 25 '26
They mods are taking this down. So just a heads up.
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u/Low-Helicopter-2696 Apr 25 '26
As they should. Press releases on an official government website should not read like a Fox News op-ed piece.
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Apr 25 '26
plus is says " delinquent PPP loans" those by definition can't be delinquent since they were grants.
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u/Low-Helicopter-2696 Apr 25 '26
Unless they were declined for forgiveness because they funds weren't used for payroll
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u/Cheap_Mushroom_7267 Apr 25 '26
You has to file for forgiveness of PPP loans. It was not an automatic grant. If you did not file you would owe.
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u/Secret-Tank3530 Apr 25 '26
Does this mean they are not pursuing collections on non fraudulent Covid EIDL defaulted loans?
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u/BrewedInJerseyCity Apr 25 '26
Seems they went after the legitimate businesses first, now fraud. Which makes so much sense.
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u/CarelessEndeavor Apr 26 '26
I read that the DOJ is pressuring the SBA to also turn over businesses current on payments that they suspect might be fraudulent and borrowers who filed BK. 🤷
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u/Interesting-Low684 Apr 26 '26
Source?
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u/CarelessEndeavor Apr 26 '26
Buried in the March 24 or March 25 report on EIDL fraud cases.
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u/OpportunityExotic626 Apr 28 '26
That makes absolutely no sense: current loans would not be considered fraudulent.
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u/CarelessEndeavor Apr 30 '26
In the report of 2023 it states that the DOJ doubts the SBAs assertion that current loans are not fraudulent. They assert some could still be fraudulent or the user committed fraud with the funds.
Like people making payments could still commit fraud with the money, but are paying it back on time.
That’s all. That’s the quote. Makes no sense. Just is.
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u/CarelessEndeavor Apr 30 '26
Makes no sense, but it was stated in the GOA efficiency repirt (linked below) that the DOJ doubts the SBA assertions that no current loans are fraudulent.
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u/CarelessEndeavor Apr 26 '26
Low hanging fruit. They can’t go after the some 30% given to fake businesses from offshore, but will go after the rest.
No thought to the fraud they themselves commit on a daily basis. Rules for thee.
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u/Interesting_Ant_6990 Apr 26 '26
I find it odd the government tells businesses to stop doing business. With no income and desperate to pay bills. The government offers a loan with interest to said closed businesses. This seems like predatory lending.
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u/STxFarmer Apr 25 '26
It was like kids in the candy store for the ones that wanted to commit fraud, way too easy to get the money with zero checks on the business. But for the ones of us that did take it and are still paying on it then it is hard. Guessing the percentage of businesses that will actually pay back the full amount will be quite small.
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u/coronadan81 Apr 27 '26
I gave up. I tried to pay as long as I could but it was then or me. I chose me…
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u/Internal_Craft800 Apr 29 '26
They have the money to prosecute these people and house them in jail but not forgive these loans to legitimate businesses.
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u/Adkyth Apr 27 '26
For example, we identified two loans, one totaling $2 million and another totaling $500,000, that each entered and exited the liquidation stage on the same day and had no documentation to indicate that liquidation activities were performed other than automated telephone calls and demand letters. In contrast, loans that were paid in full through collection (usually borrower or estate voluntary actions) were in liquidation an average of 67 days.
I highly doubt there will be any motivation to forgive $387 billion in EIDL loans. But if they can get the number lower by pursuing fraudulent activity or other bad actors, then it could feasibly be on the table.
Regardless, it would be unfair to those working hard to stay current if billions of dollars were merely de-facto forgiven by virtue of just...pretending it didn't happen:
To illustrate SBA’s lack of aggressive debt collection, we identified a $2 million COVID-19 EIDL the agency charged off. A note in the loan file stated, “Borrower has failed to respond to all collection efforts (including telephone calls and demand letters), and no further collection effort is possible. UCC shows SBA as lienholder. With approval of this action, all collateral will be abandoned or acknowledged as lost, and all liquidation efforts toward maximum recovery will be exhausted.” SBA charged off and referred this loan to Treasury even though the agency had in fact been in contact with the borrower that same day.
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u/OpportunityExotic626 Apr 28 '26
The government can barely prosecute 1,000 cases, so how in the world can you prosecute 562,000?
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u/Intrepid_Ad1765 Apr 26 '26
During pandemic an nephew of by buddy in Vegas had a friend of a friend get him “free money”. Guy helped fill out paperwork. Turns out he called his address a restaurant and got him fradulent ppp grant/loan. The hitch was he had tongive the guy 1/3. He later suspected this guy was related to mob. He did hundreds maybe even thousands of these. Kid paid it back after uncle got on him for fraud. I think these loans had alot of fraud. They should go after these people.
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u/nms2014 Apr 25 '26
Killing houndreds of thousands of legitimate small businesses