Watchdog Statement on Automatic Forgiveness for PPP Loans <$150K
WASHINGTON, D.C. – Last week, Treasury Secretary Steve Mnuchin floated the possibility that the Trump administration would automatically forgive any loan given out through the Paycheck Protection Program (PPP) under $150,000.
The poorly designed, poorly implemented program has been rife with abuse from the start. A Government Accountability Office (GAO) report said the program was “vulnerable to exploitation by those who wish to circumvent eligibility requirements or pursue criminal activities,” and limited data released by the Small Business Administration (SBA) on just 14% of the program’s recipients has already shown that wealthy and well-connected corporations were able to access funds while real mom-and-pop businesses were systematically shut out.
“We’ve already seen rampant abuse and misuse of the Paycheck Protection Program in the little data the Trump administration has made public. What guarantees are the administration providing for the data it is keeping secret?” asked Kyle Herrig, president of Accountable.US. “Make no mistake — the Trump administration is fully at fault for the faulty execution of this program. We need a full accounting of where our taxpayer dollars went, not just an automatic forgiveness without any review. Congress must ensure that the American taxpayer doesn’t end up on the hook for the program’s failures.”
Last week, Accountable.US President Kyle Herrig and former SBA Administrator Marie Johns sent a letter to congressional leaders outlining the core principles needed to make the next PPP package sustainable and effective — including transparency and accountability. Read the letter here.