WASHINGTON, D.C. – Earlier today, the Small Business Administration released revised paperwork for small businesses for businesses seeking loan forgiveness as part of the Paycheck Protection Program (PPP). The program, which has been mired in corruption and mismanagement from the start, has helped the well-connected and publicly traded companies — but failed too many actual small businesses.
Since the program launched, more than 100,000 small businesses have shuttered and an estimated 40% of black-owned businesses are not expected to survive the pandemic.
The administration’s shoot first, ask questions later approach makes no sense. Everyone knows that small businesses need access to capital and stability so they can make informed businesses decisions. The administration’s constant changes to this program are making things more confusing and needlessly opening the door to potential fraud and abuse.
For these reasons and many more, the administration should reverse course and disclose basic information on businesses that are benefiting from taxpayer relief in the PPP program.”
Kyle Herrig, president of Accountable.US
Accountable.US has repeatedly called on Congress to make the program more accountable and release basic information on all PPP recipients, such as:
- The trade and registered names of corporations, as well as those of their parent companies, that receive grants, loans, or any other funding;
- The demographic breakdown of what entities were women-, veteran-, or minority-owned;
- The amount of the funds received and on what date;
- The number of employees at the time of the loan;
- The amount of the funds that will be forgiven as a grant and how much needs to be repaid; and
- The terms of repayment, if applicable, including the interest rate charged and length of the loan.