The SBA also said it will investigate another fintech company called Womply, as well as several other lenders. "The SBA will be investigating appropriate action against their management, owners, and successor companies," the administration said. ‘Waste, fraud, abuse’: GOP lawmaker says House committee will investigate COVID spending Blueacorn received over $1 billion in taxpayer dollars from Prestamos and Capital Plus combined, according to the House report. Both lenders told investigators Blueacorn was in charge of fraud prevention and ensuring applicants were eligible for the loans. While its website remains active, the office number listed is incorrect.īlueacorn received over $700 million in fees from Prestamos for underwriting and other PPP facilitation services, according to the House report.īlueacorn provided fraud prevention, eligibility verification, customer support, and other services for Prestamos and another lender, Capital Plus of Texas. It's unclear whether Blueacorn is still providing services. Report: Blueacorn received $700M from Prestamos “Prestamos played an important role in supporting small businesses throughout the COVID-19 pandemic," the lender said. It also said its average loan was $15,000. "Prestamos supports any effort to identify and correct fraud and to enhance controls, and we have been working with the SBA to strengthen the role of non-profit, community-based lenders in reaching those in need.” "In fact, our own compliance program resulted in denials of 57% of initial PPP loan applications received by Prestamos," the lender said. Prestamos provided a written response to the allegations Wednesday, stating it followed rules to prevent fraud. company co-founded by newscaster made millions on fraudulent PPP loansĬPLC President and CEO David Adame is on the transition team for Gov.-elect Katie Hobbs. 3 lender for the PPP program by dollar value of loans, with about $7.7 billion issued in 2021, coming in behind JP Morgan Chase Bank and Bank of America, according to the House report, which highlights how the bank dramatically increased its business through the federal small business loan program. “The House Select Subcommittee report details serious problems of fraud and self-dealing by lenders and by companies who were paid fees by lenders to help PPP funds reach small business owners," the SBA said in a statement in which it announced Blueacorn is suspended from working with the agency "in any capacity." On Wednesday, the SBA said it was investigating the allegations made in the report, including those dealing with Blueacorn and Prestamos, the financial institution owned by the nonprofit Chicanos Por La Causa that worked with Blueacorn for the PPP program. Much of the report is dedicated to Phoenix-based Blueacorn PPP, which was co-founded in 2020 by former Channel 15 (KNXV-TV) newscaster Stephanie Hockridge Reis and her husband, Nate Reis. James Clyburn, D-S.C., recommends several tech and lending companies face investigation for fraud involving Paycheck Protection Program loans. The recent report from the House Select Subcommittee on the Coronavirus Crisis, chaired by Rep. Small Business Administration is investigating the lending arm of one of Arizona's most notable charitable organizations, Chicanos Por La Causa, as well as a fintech company called Blueacorn that was implicated in a recent congressional report that detailed billions in fraudulent pandemic loans.
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