Washington, DC — There is still some concern at the federal level that some of the COVID relief funds have been sent to businesses or organizations that did not need or deserve them, and that there was fraud and identity theft going on related to the programs.
At a Senate Committee on Small Business and Entrepreneurship hearing this week, Republican U.S. Senator Joni Ernst, a senior member of the committee, raised Iowans’ concerns about the Small Business Administration’s (SBA) COVID-19 relief programs with Isabel Guzman, Administrator of the SBA. Ernst stated how critical it is for the committee to continue working with the SBA to ensure the COVID relief programs are administered effectively and with transparency.
Ernst noted that it’s important that Paycheck Protection Program (PPP) funds are being directed to small businesses — not Planned Parenthood affiliates.
Last month, Ernst and her colleagues requested a detailed explanation regarding how Planned Parenthood affiliates were approved for loans, as well as an explanation of the SBA’s process for ensuring entities that were determined to be ineligible for first draw loans do not get second draw loans.
Ernst highlighted the recent reports regarding potential fraud and identity theft within the Economic Injury Disaster Loan (EIDL) program and asked Administrator Guzman about the SBA’s efforts to combat this fraud.
Ernst made her comments during the hearing this past Wednesday in Washington.
