Small Business Administrator Jovita Carranza Friday blamed lenders for information that Paycheck Protection Program borrowers contend is inaccurate.
“The data reflects information about loans approved by lenders and entered into the SBA loan system by those lenders,” Carranza told the House Small Business Committee during a hearing Friday.
Amid claims by various groups that data released by the SBA is inaccurate, Carranza said that the agency is examining all loans.
The Treasury Department and the SBA recently released information about specific PPP loans; it is that data that now is being questioned. Bloomberg News recently reported that borrowers have questioned the specific loan information released by the SBA.
“There are numerous examples of the administration claiming loans were given to companies that denied receiving the aid, and there are competing statistics about how many jobs were saved,” former SBA Deputy Administrator Marie Johns and Kyle Herrig, president of AccountableUS, a group that is monitoring the program, wrote in a letter to congressional leaders Thursday. “Congress should find out what steps the administration is taking to correct these discrepancies, if any.”
SBA and Treasury Department officials have assured lenders that they will be held harmless for inaccurate information provided by prospective borrowers.
Congressional leaders have said that negotiations over the next coronavirus crisis economic stimulus will begin next week. Credit union groups have said that PPP loans of $150,000 or less should be automatically forgiven.
During Friday’s House hearing, Treasury Secretary Steven Mnuchin said that Congress should consider automatic loan forgiveness, but made no commitment, saying that Trump Administration officials will negotiate with congressional leaders.
He also left open the option of providing a second PPP loan for companies that can demonstrate they need additional assistance.