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In an interview with CBS News affiliate KNX 1070 News Radio, Jenner & Block Partner Neil M. Barofsky explained that a lack of transparency in the government’s Paycheck Protection Program facilitated an environment where major, wealthy companies received the coveted loans, while smaller underbanked companies were often relegated to the sidelines. “They rolled out a program with no oversight and minimal transparency, and if you combine those two things with free money, you’re going to bring out the worst,” he said. Talking about companies that did not seem to qualify for the program, as well as organizations that have long decried government support but eagerly signed up for government grants in the PPP program, Neil added, “It’s pretty disgraceful, I think.” Neil further noted that the program has done great good, and that many small businesses are alive today because of it, but that the taxpayer funds that were used for the program could have been better protected: “When you use tools of good governance, of oversight and transparency, you can limit the amount of slippage.”
Click here for the interview.