The Inspector General of the Small Business Administration warned that during the earlier Paycheck Protection Program lending, businesses on a Treasury Department “Do Not Pay” list were approved for $3.6 billion in loans. It is not clear how much of the money was actually distributed.
The new Paycheck Protection Program starts with initial lending limited to businesses who have not received a PPP loan and lending going through Community Development Financial Institutions, Minority Depository Institutions, certified development corporations and microlenders. After a few days the lending options open further.
The Trump Administration wants to delay the court-ordered release of all data for businesses that received Paycheck Protection Program loans and funds from the Small Business Administration’s Economic Injury Disaster Loan program.
Under an order issued by U.S. District Judge James Boasberg, the Small Business Administration is required to release that data by tomorrow, Nov. 19.
A federal judge has ordered the Small Business Administration to release the names, addresses and precise loan amounts for businesses that received loans under the Paycheck Protection Program. “In light of SBA’s awesome statutory responsibility to administer the federal government’s effort at keeping the nation’s small businesses afloat amidst an economic and health crisis of unprecedented proportions, the public interest in learning how well the agency fulfilled its charge is particularly pronounced,” U.S. District Judge James Boasberg ruled last week. He gave the Trump Administration until Nov. 19 to release the data. Several news organizations had submitted Freedom of Information
In April, the Small Business Administration indicated that SBA Economic Injury Disaster Loan Advances would be treated as grants, but now says the forgiven amount of a Paycheck Protection Program loan must be reduced by the EIDL Advance, causing trouble for both borrowers who owe the money and the lenders who will have the unforgiven part of the PPP loan on their balance sheets. Meanwhile, the SBA’s Inspector General released a devastating report that thousands of ineligible businesses received PPP loans.
A simplified Paycheck Protection Program loan forgiveness application has been rolled out for businesses that borrowed $50,000 or less. New legislation would be required for what CUNA and NAFCU want, which is automatic loan forgiveness for loans under $150,000.
Jason Crow, chairman of the House Innovation and Workforce Development Subcommittee, complains of technology-related issues with Paycheck Protection Program loan processing which he believed could have been prevented if the Small Business Administration had properly responded to a Government Accountability Office report from 2014.
According to the Government Accountability Office, the Paycheck Protection Program’s loan forgiveness process remains unclear and incomplete and is resulting in lender fatigue.
Credit unions and their members should rely on the Small Business Administration for information about loan forgiveness in the Paycheck Protection Program and ignore what they are reading on social media, David Hincapie, an SBA economic development specialist told community development credit union officials Tuesday.
Borrowers—not financial institutions—are responsible for accurately calculating their payroll costs as they apply for loan forgiveness under the Paycheck Protection Program, the Small Business Administration said this week.