Davids, Kim introduce Legislation Requiring Transparency in Critical Small Business Loan Program
Representatives Sharice Davids (KS-03) and Andy Kim (NJ-03) have introduced legislation requiring the release of a list of businesses that have received emergency small business loans through the Paycheck Protection Program (PPP), helping to ensure there is transparency and oversight of this critical program. Davids and Kim are both members of the House Small Business Committee.
Congress created the PPP to help small businesses pay their workers and stay afloat amid the coronavirus pandemic. But several reports of large, publicly traded companies receiving these loans ahead of deserving and suffering small businesses have surfaced. Some companies have even already borrowed funding from their own executives.
“The Paycheck Protection Program has been vital to helping our small businesses and workers weather the coronavirus pandemic. Yet this program has operated with little oversight, and we’ve seen Kansas small businesses owners struggle to access relief while large corporations with deep pockets have no problem. I’m glad to introduce the PPP Accountability Act with my colleague Representative Kim so we can conduct proper oversight and help ensure these loan programs reach smaller and less advantaged businesses,” said Davids.
“We all know that the SBA’s efforts to help small businesses has been broken, and we won’t be able to fix it until we have enough transparency to see how deep the problems go. This is an important step in making sure the hundreds of billions meant to help keep our small businesses afloat and people in their jobs do just that, instead of enriching publicly traded companies who don’t need the help. I look forward to working with Congresswoman Davids to get the job done for our small business owners,” said Kim.
The Paycheck Protection Program Accountability Act will require the Small Business Administration to publish information on any businesses that receive loans over $1 million, including recipient name, business type, and amount of the loan. It will also require them to publish how much of that loan is forgiven, once that determination is made. More than 80,000 loans for over $1 million have been made so far through the PPP, accounting for approximately 35% of the loan funds that have been given out.