PPP Shell Company Discovery Act

Bill 118 hr 1476, also known as the PPP Shell Company Discovery Act, is a piece of legislation introduced in the US Congress. The purpose of this bill is to address concerns regarding the Paycheck Protection Program (PPP) and the potential for fraudulent activity by shell companies.

The PPP Shell Company Discovery Act aims to increase transparency and accountability in the PPP loan application process by requiring the Small Business Administration (SBA) to conduct additional checks to identify and prevent fraudulent applications from shell companies. Shell companies are entities that have little to no real business operations and are often used to conceal the true ownership of funds.

Under this bill, the SBA would be required to implement procedures to verify the legitimacy of businesses applying for PPP loans, including conducting background checks on applicants and cross-referencing information with other government databases. The goal is to ensure that PPP funds are distributed to legitimate small businesses in need of financial assistance, rather than to fraudulent entities. Additionally, the PPP Shell Company Discovery Act includes provisions for increased reporting requirements and oversight of PPP loans to prevent abuse of the program. This bill aims to protect taxpayer dollars and ensure that PPP funds are used as intended to support small businesses during the economic challenges brought on by the COVID-19 pandemic. Overall, the PPP Shell Company Discovery Act seeks to strengthen the integrity of the PPP program and prevent fraudulent activity by shell companies. By implementing additional verification measures and oversight, this legislation aims to safeguard the integrity of the PPP program and ensure that funds are distributed equitably to small businesses in need.