SBA, Treasury to Disclose PPP RecipientsJune 24, 2020
On June 19, the U.S. Small Business Administration (SBA) and the U.S. Department of the Treasury announced they have agreed with the bipartisan leaders—Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.) –Chair and Ranking Member of the Senate Small Business Committee to make public additional data regarding the Paycheck Protection Program (PPP) in order to ensure transparency and effectiveness in the program.
According to the agreement, the SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported and loan amount ranges for loans between $150,000 and $10 million. These categories account for nearly 75 percent of all PPP loans dollars approved. For loans approved below $150,000, totals will be released, aggregated by zip code, by industry, by business type and by various demographic categories.
The issue has sparked some recent controversy as the Senate and Treasury Secretary Steven Mnuchin have both previously denied the release of PPP borrowers’ names. On May 5, the Senate blocked legislation introduced by Sen. Cardin, Leader Chuck Schumer (D-N.Y.), and several others that would have required the SBA to provide Congress and the public with timely, detailed borrower data.
Following, on June 3, Sens. Rubio and Cardin sent a letter to Sec. Mnuchin, and Jovita Carranza, Administrator of SBA, urging the agencies to provide additional data and reporting on the PPP, Economic Injury Disaster Loan program (EIDL), and Small Business Debt Relief programs as enacted and expanded by the CARES Act. The issue ignited even more controversy on June 10, when Sec. Mnuchin said at a Senate hearing that the names of loan recipients and the amounts were “proprietary information.” At that time, Sec. Mnuchin said the Trump administration would not reveal the names of companies and nonprofits that got the PPP loans, which are guaranteed by the government and can be forgiven in full if borrowers use a majority of the funds to pay their workers. The agencies had expressed worry that such disclosures might reveal proprietary information about the borrowers because the loans are based on payroll.
Over on the House side, Rep. Maxine Waters (D-Calif.), Chairwoman of the House Committee on Financial Services, Rep. Richard Neal (D-Mass.), Chairman of the House Committee on Ways and Means, and Rep. Nydia Velázquez (D-N.Y.), Chairwoman of the House Committee on Small Business, reminded the Department of the Treasury and the SBA of their duty to be transparent and accountable. Given the shared responsibility the Committees have to conduct oversight of Treasury and the SBA, the Committee Chairs requested the names of all recipients of PPP loans, the dollar amount of all loans received, as well as the names of all applicants that did not receive PPP loans.
Currently, the SBA releases a report detailing the distribution of PPP funds by NAICS sector on a weekly basis. The current PPP data that is disclosed includes total dollars approved, loan sizes, lender sizes and types, loans approved by state, top lenders, loans by industry sector and funds remaining. The SBA and Treasury have not yet announced when borrower names will be added to the report.