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SBA Statement on House Select Subcommittee Report Concerning PPP Fraud

Date
2022-12-14

Source document: Kyc Company Litigation (2022-12-14); document type: lender-materials.

Full text

Case 5:21-cv-04337-JMG Document 53-2 Filed 12/14/22 Pageiof4

Exhibit 2
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PRESS RELEASE

U.S. Small Business Administration
Statement on the House Select
Subcommittee on the Coronavirus
Crisis Report Concerning Fraud in the
Paycheck Protection Program

December 8, 2022 | Release Number 22-98

Contact U.S. Small Business Administration at Press Office@sba.gov

WASHINGTON - Today, the U.S. Small Business Administration (SBA) issued the following
statement regarding the findings from the House Select Subcommittee on the Coronavirus Crisis

report on Paycheck Protection Program (PPP) fraud.

“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. In response to new revelations detailed in the report of possible fraud facilitated by third-
party companies, the Small Business Administration (SBA) is taking additional action.

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Hurricanes Fiona and lan: Learn about SBA disaster assistance. x

appropriate action against thelr management, owners, and successor companies. In addition to
the actions announced today, SBA launched a full investigation of the lenders -- Benworth, Capital
Plus, Celtic Bank, Customers Bank, Cross River Bank, Fountainhead, Harvest, and Prestamos -- as
well as the individuals and other related entities named in the report. The SBA will continue to
work with the House Select Subcommittee to examine the evidence laid out in its report and
continue taking corrective action to address the fraud and weak controls that were so prevalent at
the onset of the PPP.

“As part of the investigation, the SBA will work with federal partner agencies including the
Consumer Financial Protection Bureau, the U.S. Department of the Treasury, Federal Deposit
Insurance Corporation, Federal Reserve Board and the Office of the Comptroller of the Currency to
ensure that federal financial regulators have a coordinated response to wrongdoing by lenders.

“The SBA will continue to prioritize its response to findings of potential fraud in pandemic relief
programs, efforts that have been positively recognized by the SBA Office of the Inspector General.”

HHH
About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership.
As the only go-to resource and voice for small businesses backed by the strength of the federal
government, the SBA empowers entrepreneurs and small business owners with the resources and
support they need to start, grow, expand their businesses, or recover from a declared disaster. It
delivers services through an extensive network of SBA field offices and partnerships with public
and private organizations. To learn more, visit www.sba.gov.

Related programs:

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Hurricanes Fiona and lan: Learn about SBA disaster assistance. x
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U.S. Small Business Administration409 3rd St, SW. Washington DC 20416

https://www.sba.gov/article/2022/dec/08/us-small-business-administration-statement-house-select-subcommittee-coronavirus-crisis-report

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