Congressmen Cohen Asks Treasury Secretary Mnuchin to Exercise Proper Oversight of Paycheck Protection Program Loans
MEMPHIS – Congressman Steve Cohen (TN-09) today wrote to Treasury Secretary Steven Mnuchin asking that he reconsider blanket loan forgiveness for recipients of assistance through the Paycheck Protection Program after both the Department of Justice and the Internal Revenue Service identified egregious instances of fraud. Congressman Cohen reminded Mnuchin of his public testimony on the issue of loan forgiveness and asked, in light of the fraud concerns, whether he has reversed his position.
The letter reads in part:
“As you’ll recall, in July, you testified before the House Small Business Committee and suggested that blanket forgiveness be given to all smaller businesses who received PPP loans without verifying how the funds were used. With widespread fraud and abuse already identified, I find this approach very concerning. The DOJ and IRS have already identified instances of fraud in these programs, and we must remain diligent to ensure the resources Congress allocated reach those for whom they were intended. Even if just a tiny proportion of the total loans were fraudulent, in a program of that size, that could equate to billions of dollars in losses for the taxpayers.”
See the entire letter here.