Feds arrest 2 men in first fraud case involving PPP loan program for small businesses hurt by coronavirus – USA TODAY

The program provides loans of up to $10 million to services with 500 or less workers that were operating as the COVID-19 pandemic started affecting the nation. The loans are entirely forgiven if at least 75% of the money is invested on keeping or rehiring staff members. A DOJ examination identified that one of the Rhode Island restaurants, the previous Remington House, and the Massachusetts restaurant, On The Trax, were not open for business prior to the start of the COVID-19 pandemic, at the time the loan applications were submitted, or at any time afterwards, according to the complaint.

“What we see coming out of Rhode Island is what’s occurring throughout the country,” Assistant Attorney General Brian A. Benczkowski, informed USA TODAY. Congress developed the PPP in March as part of the CARES Act, the federal reaction to the COVID-19 pandemic, which has forced social distancing actions that have required millions of small companies to contract or close completely. The program uses loans of up to $10 million to organisations with 500 or fewer workers that were running as the COVID-19 pandemic started impacting the nation. The loans are completely forgiven if at least 75% of the cash is spent on keeping or rehiring workers. A DOJ investigation identified that one of the Rhode Island restaurants, the former Remington House, and the Massachusetts dining establishment, On The Trax, were not open for organisation prior to the start of the COVID-19 pandemic, at the time the loan applications were submitted, or at any time afterwards, according to the grievance.

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