Sen. Rick Scott Requests Update on Audit of PPP Loan Fraud
November 18, 2020
WASHINGTON, D.C. – Today, Senator Rick Scott sent a letter to the Comptroller General of the U.S. Government Accountability Office (GAO) requesting an update on the office’s work with the Small Business Administration (SBA) to audit potentially fraudulent Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). These funds were intended for organizations and businesses hurting from the coronavirus pandemic, and any abuse of American taxpayer dollars is unacceptable.
November 18, 2020
The Honorable Gene L. Dodaro
Comptroller General of the United States
U.S. Government Accountability Office
441 G Street NW
Washington, DC 20548
Dear Comptroller Dodaro:
Thank you for your continued efforts to protect American taxpayer dollars from fraud, waste and abuse within the CARES Act. As you know, there have been many concerning reports published in recent weeks regarding rampant fraud within the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. These programs have helped so many businesses in Florida and across the nation stay afloat during this unimaginable time, but for months, I’ve called for reforms to make sure taxpayer money goes directly to those who truly need it. Now, we can clearly see the abuse and that businesses and organizations that didn’t need taxpayer money took it simply because they could.
Too many in Washington believe that government waste is inevitable - it’s just the cost of doing business. I know you agree with me that is not acceptable. This is taxpayer money, and we can’t afford to waste it. Proper and thorough auditing of businesses who received these loans will be key to ensure we stop this criminal activity and protect taxpayer money from being wasted at a time when our nation can least afford it.
As we continue to work to protect against waste and fraud, I write to ask you the following questions:
- What is the status of GAO’s ongoing work regarding the SBA and its plan to audit potentially fraudulent PPP and EDIL loan activities, including the status of your recommendation for SBA to develop an oversight plan?
- How is GAO working with the Inspector Generals and auditing community to identify, mitigate, and recoup funds from any fraudulent activity in these programs?
- Given GAO’s past information and documentation access issues at SBA and other agencies, what additional steps could Congress take to better support your efforts to carry out the appropriate and necessary oversight of these funds going forward?
I commend the work you and your office have been able to achieve to date. The federal government’s ability to identify and follow up on allegations of fraud, waste and abuse will affect how much these programs will ultimately cost taxpayers. I look forward to your timely response.
Sincerely,
Rick Scott
United States Senator
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