Finance
PPP Scammers Made Fintech Companies Their Lenders of Choice
The government turned to web-based lenders to get money out quickly, without too much paperwork.
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In April the Paycheck Protection Program was under fire for moving too slowly and leaving too many people out. Part of the $2 trillion Cares Act, it was set up to offer forgivable loans to small businesses such as restaurants and hair salons that would help keep them afloat through the Covid-19 lockdowns in the U.S. Banks were initially in charge of administering the government-backed payments. In an effort to distribute the desperately needed money faster, web-based companies were later allowed into the program. Grateful businesses praised their speed.
It turns out scammers found them useful, too.