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Illustration: Eniola Odetunde/Axios

The U.S. Treasury Department Monday morning released the names of over 660,000 small businesses that received Paycheck Protection Program loans of at least $150,000, per its recent compromise with Congress. Well, at least that's what we thought Treasury did.

What happened: Within hours, several well-known companies and investment firms on the list denied that they had ever applied for PPP loans, let alone received them.

  • A handful of venture capital firms and funds were listed, but most claimed it was a mistake.
  • For example, Treasury reports that Foundation Capital VIII received between $1 million and $2 million. But Foundation's Dave Anderson says the loan actually was for a Foundation portfolio company.
  • Per an email: "The processing bank confirmed it was a data entry error on their end, and they are working with the SBA to correct the database. They also confirmed that the funds did go to the right company, and not Foundation Capital."
  • Foundation used Silicon Valley Bank, but there were similar alleged issues with plenty of other lenders — suggesting something more systemic.

Then there's e-scooter company Bird, which Treasury reports got a PPP loan of between $5 million and $10 million.

  • Bird claims it began an application with Citi, but ultimately decided against applying. Citi confirmed that it "has not funded a PPP loan for Bird."
  • A senior administration official told Axios: "Companies listed in today’s data disclosure had their PPP applications entered into SBA’s Electronic Transmission (ETran) system by an approved PPP lender. If a lender did not cancel the loan in the ETran system, the loan is listed as part of today’s data disclosure."
  • Citi says it processed around $3.5 billion in PPP loans.

Be smart: There were over 660,000 companies listed. And reporters only called a tiny percentage of them. If the error rate *we* found is representative of the larger sample, then who knows how many PPP loans there really were, or what companies they went to. Imagine if small businesses got shut out of the initial pool, and then shut down or laid off employees, if the initial pool wasn’t actually exhausted?

  • There’s going to need to be an audit, and not just the promised reviews of companies that got loans north of $2 million.
  • Was this just a bunch of fat fingers? Fraud? Incompetence? A combination of all three?

The bottom line: The purpose of these PPP disclosures was to better understand how the program worked, particularly ahead of a phase 4 stimulus. What we've learned is that we need even more disclosures.

Go deeper

What banks' booming profits say about the economy

Illustration: Sarah Grillo/Axios

Some of America's biggest banks are making more money now than they were before the pandemic hit.

Why it matters: Quarterly earnings out this week hint that the worst economic scenarios haven't yet come to pass. Still, executives are warning there could be a rocky road ahead for the economy.

Texas AG sues Biden administration over deportation freeze

Texas Attorney General Ken Paxton speaks to members of the media in 2016. Photo: Alex Wong/Getty Images

Texas Attorney General Ken Paxton is suing the Biden administration in federal district court over its 100-day freeze on deporting unauthorized immigrants, and he's asking for a temporary restraining order.

Between the lines: The freeze went into effect Friday, temporarily halting most immigration enforcement in the U.S. In the lawsuit, Paxton claims the move "violates the U.S. Constitution, federal immigration and administrative law, and a contractual agreement between Texas" and the Department of Homeland Security.

Dan Primack, author of Pro Rata
1 hour ago - Podcasts

Carbon Health's CEO on unsticking the vaccine bottleneck

President Biden has said that getting Americans vaccinated for COVID-19 is his administration’s top priority given an initial rollout plagued by organizational, logistical and technical glitches.

Axios Re:Cap digs into the bottlenecks and how to unclog them with Carbon Health chief executive Eren Bali, whose company recently began helping to manage vaccinations in Los Angeles.