A top Senate Republican is calling for accountability in the wake of an “alarming” rate of defaults on COVID-era “PPP” loans, which have resulted in reported losses of $1.27 billion as of November 2024.
According to a letter from Inspector General for Pandemic Recovery Brian Miller to Senator Joni Ernst, the loan programs have seen a significant number of defaults, with borrowers failing to pay even the interest payments on the loans.
Ernst, who has drafted the Complete COVID Collections Act, is seeking to hold fraudsters accountable and prevent further losses. The bill would extend authorization of the SIGPR through 2030 and expand its jurisdiction to cover other SBA COVID-related programs.
The proposal also directs the Treasury to enforce collection of loans under $100,000 as stringently as high-dollar alleged scofflaws and late-debtors. Additionally, the bill brings in the Justice Department, requiring the law enforcement agency to provide regular reports to Congress on activities related to pandemic-centric programs.
Ernst warned that if her bill does not pass, dishonest loan applicants could get away with $200 billion in fraud from COVID-19 relief. She stressed that the country cannot afford to leave more than $200 billion floating around, especially in the hands of fraudsters.
The bill has gained co-sponsorship from four other Republicans, including Senators Marsha Blackburn, Todd Young, James Lankford, and John Curtis.
