The Small Business Administration (SBA) likely distributed hundreds of millions of dollars’ worth of Paycheck Protection Program (PPP) loans to nonprofits that may not have been eligible to receive such funds, according to the Office of the Inspector General (OIG) of the SBA.
The PPP was established under the Trump administration and aimed at helping small businesses and nonprofits to continue paying their employees. As of Aug. 8, 2020, the SBA approved 136,355 loans worth more than $35 billion to nonprofits, of which more than $33 billion have been forgiven, according to an OIG report on Sept. 26.
To qualify for a PPP loan, a nonprofit is required to employ no more than 500 workers or meet the SBA’s employee-based size standard for its primary industry….