The U.S. Department of Justice’s review of the $670 billion emergency loan program has already identified potentially fraudulent activity by businesses that applied for Paycheck Protection Program loans. This disclosure came after Treasury Secretary Steven Mnuchin’s warning that companies would face possible criminal liability if they improperly applied for PPP loans.
The Small Business Administration (SBA) also plans to apply extra scrutiny for loans above $2 million. The SBA also implemented a new rule intended to make it more difficult for large corporations to large loans for their subsidiaries. Mnuchin and the SBA want to discourage larger companies from applying for the forgivable loans.