As stimulus talks again broke down in early September, Sen. Marco Rubio, R-Fla., chairman of the Senate Committee on SmallBusiness and Entrepreneurship, pressedJPMorgan Chase CEO Jamie Dimonto answer several questions by Sept.23 about reports that bank employeeshave been involved in potentially illegalconduct involving Paycheck ProtectionProgram and Economic Injury DisasterLoans (EIDL) funds.
Published reports stated thatJPMorgan Chase is investigatingalleged misuse by employees of PPPand EIDL funds.
JPMorgan said it has seen “instances of customers misusing PaycheckProtection Program Loans, unemployment benefits and other governmentprograms” and that some “employeeshave fallen short, too,” according to amemo to staff from the bank’s seniorleaders, as reported by Bloomberg News.
The firm said the conduct doesn’t meet
its principles “and may even be illegal.”
“We are doing all we can to iden-
tify those instances and cooperating with
law enforcement where appropriate,”
Bloomberg reported the memo as stating.
Rubio told Dimon that he’s “alarmed”by the reports.
“Both the PPP and expanded EIDL
programs were intended to provide crit-
ical economic assistance to small busi-
nesses during this time of enormous
need,” Rubio wrote. “Financial institu-
tions, like yours, are on the frontlines
of providing PPP assistance. Allegations
that employees of financial institutions
have exploited either the PPP or EIDL
programs for their own gain must be
The PPP has provided “over $525 bil-
lion in critical relief to more than 5. 2 mil-
lion businesses, and saved an estimated
50 million jobs,” the senator wrote.
While Rubio told Dimon that heappreciated his previous response inMay that JPMorgan “did not prioritizecertain [PPP] loan applicants over others,” the senator wanted answers on:
• The specific allegations JPMorganis investigating;
• Any actions JPMorgan has taken tomitigate potential fraud or misuseof PPP and/or EIDL funding;
•Any actions JPMorgan has taken
to notify SBA and/or federal law
enforcement of potential fraud
or misuse of PPP and/or EIDL
• Any internal controls distributed to
the bank’s employees regarding the
PPP and/or EIDL program.
By Melanie Waddell
As Stimulus Talks Break Down Again,
Rubio Ramps Up PPP Loan Query
JPMorgan’s Dimon pressed on PPP loan misuse; pre-election stimulus