PPP Loan Fraud

Fraud erupted when the greedy sought money from the Paycheck Protection Program last year.

The PPP was created to help small businesses during Covid, but Tens of thousands of loans went to ineligible businesses. Propublica reported in May that 7 million dollars of Loans went to hundreds of fake farms. Kabbage is an online lending platform. They extended  300,000 loans before funding ran out in August of 2020, second only to Bank of America. Kabbage is one of the financial technology companies known as “fintechs”. They act as intermediaries between investors and small businesses. They lend money to borrowers with questionable credit histories in exchange for very steep fees. Fake entities were structured as single-person operations to gain federal money. These may have been created through synthetic identity theft. A criminal locates personal information like a Social Security number. When combined with fake information a credit profile is built and a bank account then routes to the crook. Unfortunately, innocent people linked to the phony entities created by Kabbage and others, are stuck with numerous problems. Their credit is impacted. The Department of Justice has special agents bringing charges against the perpetrators. Proverbs 28:25 says, “A greedy man stirs up strife, but the one who trusts in the Lord will be enriched.” My prayer is that innocent people will soon have their names cleared and that criminals will receive just sentencing. 

In my new book, Seven Gray Swans, I describe potentially significant events that could happen. A gray swan is an obvious danger that we tend to ignore. It addresses very real and relevant issues of our day. I hope to show you how to prepare for and survive these economic threats. You can find the book online at Amazon.com.