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Blueacorn and Womply PPP Companies Added to Congressional Inquiry

A Congressional subcommittee to investigate financial fraud during the pandemic expanded its online lending investigation this week to include two of the most important processors in coronavirus assistance.

Representative James Clyburn, DS.C., chairman of the select subcommittee on the coronavirus crisis, sent letters to Blueacorn and Womply on Tuesday requesting information on fraud prevention. Both became major players who merged technology and finance to accelerate lending through the government’s paycheck protection program.

Womply had no lending experience before COVID-19 and Blueacorn didn’t exist, but together the companies captured more than $ 3 billion in fees – eclipsing their direct competitors.

The startups are not banks but have worked as intermediaries, marketing to distressed companies and quickly approving loans with partner banks, supported by the Small Business Administration. Businesses earn their money from fees paid by the government to facilitate loans.

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