Pandemic Relief Fraud Exposed in Minnesota and Illinois
SPRINGFIELD, IL — Yesterday, the House Committee on Small Business launched new oversight of COVID-era SBA lending programs, requesting information from the Small Business Administration following reports of historic fraud tied to nonprofit networks in Minnesota. The review, including a significant fraud probe in Minnesota over roughly $400 million in loans, underscores how deeply flawed some emergency funding programs have been.
“Pandemic-era relief programs, like the CARES Act and ARPA, were designed to keep small businesses afloat and help families through an unprecedented crisis,” said Tracy. “But instead of common-sense guardrails, Washington rushed trillions of dollars out the door with weak oversight and self-certification loopholes. The result was predictable: fraud on a massive scale, with taxpayer dollars diverted away from the people who truly needed help.”
Illinois has seen alarming pandemic relief fraud issues involving government employees of Governor Pritzker and other top Democrat government officials. Hundreds of such employees are under investigation for improperly obtaining Paycheck Protection Program (PPP) loans that were meant to support struggling small businesses.
Tracy continued: “Whether it’s Minneapolis or right here in Illinois, the lesson is clear: Fraud drains resources away from Americans in need, drives up costs for taxpayers, and undermines trust in programs that are supposed to help people survive tough times.
“Illinois’ working families need a strong, common-sense voice in Washington that will fight waste, lower the cost-of-living, and make sure federal programs work for everyday Illinoisans.”
Don Tracy is available for phone, video, and in-studio interviews on this topic.
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About Don Tracy:
Don is Senior Counsel at Brown, Hay & Stephens, the oldest law firm in Illinois, where Abraham Lincoln famously practiced law for four years. Public service is important to Don, with a lifetime spent in community service, most often in volunteer positions. He has served as Chairman of the Illinois Republican Party, Chairman of the Illinois Gaming Board, Secretary of the Illinois Bar Foundation, President of the Sangamon County Bar Association, Chairman of the Illinois Corporate Acts Advisory Committee, and President of the Abraham Lincoln Association, President of the Oak Ridge Cemetery Board, among other community leadership positions. Born in Urbana, raised in Mt. Sterling in Western Illinois, and having raised his own family in Springfield in Central Illinois, Don has deep ties to "downstate Illinois." As the oldest of 12 children, family has always been important to Don.