Saturday, July 18, 2020

SBA questioned about PPP funds to abortion providers

The House Committee on Small Business held a hearing entitled, “Oversight of the Small Business Administration and Department of Treasury Pandemic Programs,” which included as witnesses Treasury Secretary Steven Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza.

During the hearing, Congressman Dan Bishop (R-NC) stated, “It is now widely known that abortion provider Planned Parenthood brazenly violated the law concerning business affiliation by taking $80 million of PPP loans via its affiliates. The American people want to know how the SBA failed to act in real time to prevent this wrongdoing and how it will act quickly to compel the return of those funds and prosecute those responsible.”

This question comes after Congressman Bishop signed a bicameral Member letter calling on the Small Business Administration (SBA) to investigate reports that Planned Parenthood (PPFA) affiliates improperly applied for and received $80 million in forgivable Paycheck Protection Program (PPP) loans.

Under H.R. 748, the CARES Act, small businesses and non-profits are ineligible to receive forgivable PPP loans if they exceed a 500 employee limit. If a small business or non-profit is identified as “affiliated” (according to tests present in SBA regulations), all the employees of all affiliates must be counted together.

The letter explains that PPFA’s control over its affiliates’ policies meets the common management test for “affiliation” under SBA regulations. PPFA has approximately 16,000 employees nationwide, which far exceeds the 500 employee limit set for PPP.

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