Biden overstepped his authority and SC stopped loan forgiveness

[SunsetBengal]

(06-30-2023, 06:07 PM)Luvnit2 Wrote: This is apples to oranges. The PPP was designed to keep small businesses from going out of business. It was not a loan forgiveness program. It was a program to encourage businesses to keep people working. The parameters were very specific on how a business can apply and get the funds. But, the employer (business) had to meet criteria like a loss of at least 20% in sales/revenue in ay given quarter (3 months0 and continue to pay employees. Some of the employees were paid by employers even though they were not working to meet the eligibility requirement.

The PPP program not helped employees keep their job, it was an investment in the future as these small businesses could survive and continue to pay tax revenue and add employees over time versus putting a whole lot of people out of work which removes tax revenue from those unemployed.

The Biden loan forgiveness is straight removal of around 430 billion dollars being paid to banks. It is actually the opposite of being a program designed to encourage college students and graduates to work. 

The bottom line is parents and students need to understand if they sign a contract, they will be held accountable to pay it back. However, there are programs available now for students to apply under hardships. A hardship is a thing like major medical bills. A hardship is not a graduate (they pay 6 months after graduation) that refuses to work and make money to pay back the loan.

There was also a lot of widespread fraudulent claims paid out, the extent of which we may never truly know.

https://www.sba.gov/sites/sbagov/files/2023-06/SBA%20OIG%20Report%2023-09.pdf

The report in the link shows the volume of cases of fraud as related to PPP program to a specific date.  I feel fairly certain that investigations and efforts to recover ill gotten funds are ongoing.