Unemployment fraud exploded during the COVID-19 pandemic, according to the U.S. Labor Department Inspector General’s semiannual report to Congress.
Approximately $872 billion in federal funding was allocated to unemployment benefits in the last year, and at least 10% was estimated to be paid “improperly, with a significant portion attributable to fraud.”
The Small Business Administration and the U.S. Treasury revealed Sunday that the second round of the Paycheck Protection Program has issued 2.2 million loans, totaling $175 billion.
PPP loans are forgivable loans for small businesses to offset some of the losses experienced by the response to the COVID-19 pandemic. The loans are meant to provide a direct incentive for small businesses to keep their workers on the payroll.