When the federal government began distributing billions of dollars in pandemic relief to struggling businesses due to COVID-19, it was a lifeline for many. For others, it was an opportunity to commit fraud. On Tuesday, a congressional panel began examining the payouts in one program, following a report that as much as 20% of taxpayer money may have gone to fraudsters. The Small Business Administration’s Office of the Inspector General reports people used stolen identities to receive funds from the Economic Injury Disaster Loan program or EIDL. And congressional investigators found that some 1.6 million applications for loans may have been approved without even being evaluated. According to testimony on Tuesday from the SBA’s inspector general, Hannibal “Mike” Ware, he also expects a new wave of fraud to be discovered in PPP loans. While investigations are ongoing, federal prosecutors have charged nearly 1,500 people with crimes related to fraud against the government over business loans and enhanced unemployment insurance programs.
When the pandemic led to massive layoffs, New Jersey’s unemployment insurance trust fund was drained of money and now the state’s small businesses need to pay higher payroll taxes to replenish it. But on Tuesday, the Assembly Appropriations Committee passed legislation that would support tax credits for businesses to offset that tax increase.
Amid decades-high inflation and extreme volatility on Wall Street, the Federal Reserve on Tuesday began a two-day meeting to decide whether to raise interest rates. The Fed will announce its decision on Wednesday; it’s expected to move aggressively.
