The PPP Scandal: How the Rich Fleeced America During the Pandemic?

by Entrepreneurship 05 June 2024

The PPP Scandal

The Paycheck Protection Program, or PPP, was initially introduced as a lifeline for small businesses that were hit by COVID-19. Soon, it became an opportunity for scammers to scam billions of dollars. Let’s find out about the PPP Scandal.

This aid consisted of billions of dollars, which would help small businesses survive the pandemic. Instead, nearly 100 billion loan applications were filed under PPP through foreign crime rings and shady businesses.

In this article, we talk about the PPP scandal that shocked the world and disclosed how rich exploits opportunities provided for the working class even during the toughest of times.

What is the PPP Scandal?

What is the PPP Scandal

The American Federal Government introduced this PPP loan to aid American legitimate businesses during the pandemic. This aid consisted of billions of dollars, which would help small businesses survive the pandemic. 

But soon this aid turned into a scam when shady businesses started applying for PPP aid loans. What was to become a hope for legitimate businesses struggling during the pandemic quickly became an opportunity for fraudsters to cheat billions of dollars in aid. 

An estimate of nearly 100 billion dollars worth of loan applications was submitted by shady businesses. This led to the PPP Scandal, where billions of loan amounts were processed for shady businesses instead of small businesses. 

Instead of offering loans to specific businesses that meet specific eligibility criteria to get loans, PPP loans were processed for rich and shady businesses. The PPP scandal included eminent personalities who lived in luxuries taking loans through the PPP. 

This is what shocked the world even during the hardest times like pandemic, the wealthy exploit the working class.

Listed below are celebrities who benefited from the PPP loan, which was supposed to be a lifeline for small business owners.

Celebrities Who Benefited Through PPP Loan

Celebrities Who Benefited Through PPP Loan

The PPP scandal included some of the richest people in the world and individuals who have millions of dollars.

So, even if the Paycheck Protection Program or PPP was introduced for struggling business owners during the pandemic, these individuals successfully got loans from PPP. 

The eligibility criteria that the American Federal Government set made these individuals eligible for PPP. This is what makes it more shocking for people, thus creating a PPP scandal that highlighted the misuse of aid.

Kanye West

Kanye West was among the celebrities who received millions from the program. The PPP scandal stems from the shock that a personality like Kanye West, who has a luxurious lifestyle and immense wealth, would need a loan from PPP.

Small businesses suffered the most due to the unforeseen Covid-19 pandemic. So you would think that these people would need the loan and not rich celebrities like Kanye West. 

So there is no real need for people like Kanye West to get these loans who have millions in their name. But you would be wrong as the PPP scandal highlights. Being one of the highest paid musicians in the world, did not stop him from taking advantage of the program.

He still saw fit to take advantage of this opportunity meant for those that actually need it. This tells us that inequality is still very much existent in America’s financial system.

It also has fans and critics wondering about his ethics and motives as an artist. The irony behind a rich musician taking taxpayer money while struggling businesses sink doesn’t sit right with many people.

Jared Kushner

Jared Kushner, who was the former senior advisor to President Donald Trump, was able to secure PPP loans as well. Kushner Companies benefited from PPP loans along with his family business. 

His involvement in these scandals makes you question whether or not you can trust your government officials at all when they’re put into such powerful positions. 

Jared Kushner played a big role in creating this program, so why would he benefit from it? These are questions that lead us back to needing more oversight and accountability with our relief programs.

Diddy

Diddy tapped into PPP funds as well, making him another addition to the list of superstars exploiting this program. Diddy’s empire alone should’ve prevented him from being eligible in the first place. But alas, he found a way around it. 

Him taking this money speaks volumes about how morally bankrupt some wealthy people really are. One would think that if you already have enough means to sustain yourself, you wouldn’t take resources intended for struggling individuals trying to make ends meet.

These cases highlight something larger going on with the wealthy using government relief programs like their own piggy bank. As famous figures in the music industry, these actions set a concerning precedent for future artists. 

This shows that it’s alright for the rich to take advantage of programs that were created to support those in need. To prevent this from happening again, there needs to be a reform put in place immediately.

Michael Kassan

Michael Kassan’s story is just another example of how the wealthy capitalized on PPP loans. The goal of this program was to boost struggling businesses, not help the rich get richer. Especially when others suffer due to an unforeseen factor. Kassan’s actions showcase how greedy some have become during this difficult period

What makes this case worse is that he is in a position of power. As the leader in the advertising industry, he is misusing the power to gain more money. 

It begs the question: if someone who is already doing well financially has the audacity to take these loans, then what are they really for? It’s concerning and only serves to damage public trust even more.

But that still isn’t all. There are other consequences of this exploitation. As more money goes into the hands of rich individuals, it becomes more tough to bridge the economic gap. Also , inflation rises, especially in real estate markets. 

As per our economic recession history, inflation is the last thing we need. So therefore the PPP scandal highlights how government aid does nothing for us when implemented wrong. It does not improve the ordinary individual life if strict guidelines are not followed.

Conclusion

Any aid in form of loans or support must have strict guidelines and criteria that cannot be bypassed. This helps distribution of aid helpful for hard hit businesses as they recover and move forward. This, in turn, helps our overall economy.

But in regard to the PPP scandal, we got to see how little regard some wealthy individuals have for their communities. Many were already skeptical about them before this scandal broke out, but it definitely drove home those concerns.

Our next steps should be focused on making sure these people face repercussions.  Such abuses can never happen again if future relief efforts are provided.

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Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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