• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Celebrities receive loan forgiveness

Here’s another example of a program functioning as intended that seems to have benefitted the not-so-needy.

The Paycheck Protection Program (PPP), was designed to help businesses maintain their employee headcount. The funds were distributed as loans, however, they could be forgiven under certain conditions. An NPR analysis of SBA data released in January found that 92% of PPP loans were granted full or partial forgiveness.

Some businesses with rich owners were among those that got off the hook. Retired NFL quarterback Tom Brady’s sports nutrition company TB12, for example, received a PPP loan for $960,000, which has since been forgiven in full.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

Small business fraud

The Office of Inspector General (OIG) announced in June that it found the SBA may have paid out over $200 billion in fraudulent relief funds.

The OIG says 4.5 million potentially fraudulent claims were made through the SBA’s PPP and the COVID-19 Economic Injury Disaster Loans (EIDL) program.

The programs were created to help businesses stay afloat and pay their employees during lockdowns. The OIG believes that many of the PPP and EIDL scammers were part of organized crime rings who took advantage of the rapid rollout of the pandemic aid programs.

Fintech fraud

Several financial technology companies swooped in during the pandemic to help applicants fill out pandemic aid paperwork and process those requests on behalf of banks.

Some of these companies raked in billions of dollars in fees for facilitating PPP loans while turning a blind eye to fraudulent applications, according to a report released in December by the House Select Subcommittee on the Coronavirus Crisis.

For example, loan reviewers from one company, Blueacorn, told the subcommittee they were pressured to approve PPP applications that seemed suspicious, especially if they were high-dollar applications, the report says.

Blueacorn did not immediately respond to requests for comment from multiple news publications when the report was released.

Blueacorn received over $1 billion in taxpayer-funded processing fees, according to the report. But the subcommittee also believes tens of billions of dollars in PPP funds were likely handed out to fraudsters.

The richest 1% use an advisor. Do you?

Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.

Try it now

Sabina Wex is a writer and podcast producer in Toronto. Her work has appeared in Business Insider, Fast Company, CBC and more.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.