Panel of Inspectors Generals Calls for PPP Loan Transparency
According to new reporting in the Wall Street Journal, a panel of inspectors general demanded this week that the Small Business Administration (SBA) release information on recipients of Trump’s Paycheck Protection Program (PPP) who received loans of at least $25,000. The watchdog panel says that the SBA’s failure to disclose information on recipients of assistance through the poorly designed, poorly implemented program violates the 2006 Federal Funding Accountability and Transparency Act.
Well-connected Businesses Run Away With PPP Loans
Accountable.US released the following statement on behalf of its president, Kyle Herrig, in response:
“We already know that Trump’s poorly designed, poorly implemented Paycheck Protection Program let wealthy, well-connected businesses run away with loans of more than $150,000 while actual small businesses got boxed out. What is the administration trying to hide by keeping the public in the dark? The SBA needs to release this information so we can make sure mom-and-pop shops get the support they need going forward.”
As reports of fraud, abuse, and misuse of the PPP have mounted, Accountable.US has spent months calling on the SBA to make more information about the program public. Here’s what else we need to know:
- Which companies received PPP funds since July 6, 2020 — and for how much? As loans have continued to flow through the Paycheck Protection Program, the SBA has not released any new data on the program’s recipients since July 6th. We need information about who got money in the interim, how much they received, and how the funds were used.
- Which loans are approved for forgiveness? Forgiveness of PPP loans hinges on how companies spent the money. Information on which loans are forgiven and how much of each loan is forgiven would provide invaluable data on how much this program will cost taxpayers and how companies spent their taxpayer-backed funds.
- How is loan forgiveness being decided? In a program rife with bias and favoritism, it is essential that the process by which recipients’ PPP loans are forgiven is clear, fair, and transparent to the public in order to ensure that the process is free of ethics violations and corruption.
- How exactly were funds distributed through the PPP used? Reports and analyses have shown that many recipients of the fund used funds for purposes outside of the program’s original intent. How much of each company’s loans was used to fund payroll, utilities, rent, and other such business expenses? In order to understand the program’s effectiveness and ensure continued success of further relief packages, we need itemized information on exactly how businesses utilized their assistance thus far.
Read the full group’s August 11 letter to the SBA’s inspector general HERE.
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