DeKalb Times

Critics of the government’s PPP loan program point to St. Charles native Khalief McAllister as an example of how the program has become a magnet for fraud and abuse.

McAllister died earlier this month when struck by a hail of bullets that also injured three others outside the Triology nightclub. At the time of his death, he had a police record that included involvement in at least three recent drive-by shootings and a bank account that featured a PPP loan for $20,000.

Several media outlets have reported Itria Ventures LLC, the source of McAllister’s PPP funds, has been accused of predatory behavior during the COVID pandemic that includes filing numerous lawsuits foreclosing on small business owners.

The Kane County Reporter has previously reported the loan application for McAllister does not list a company name.

Reason.com pegged the amount the government has shelled out to address the social and economic fallout stemming from the pandemic somewhere in the neighborhood of $4 trillion.

“And the early results bode poorly for proponents of 'big government,' the article said, pointing to a new Cato Institute legal policy bulletin that called many of Congress’ signature programs into question.

“Overwhelmed, the SBA cut corners to facilitate the flow of public funds out the door,” according to Reason.com. “For the PPP, the agency relaxed underwriting controls for lenders, waiving basic documentation requirements like financial statements and income tax returns."

Even with red flags popping up all around and the inspector general warning of “widespread fraud,” upwards of $260 billion in taxpayer money has been allocated thus far through the SBA.  

“Due to the very nature of Congress' intention to quickly aid those affected by the pandemic and its economic effects, federal relief programs were at an increased risk of improper payments,” Reason.com said. “Still, while it may be that some level of waste is acceptable in an emergency, the SBA's miserable performance is beyond the pale, and serves as a stark reminder of the limitations of 'big government.'"