Published 09:56 IST, June 13th 2020
US Congress demands transparency in Paycheck Protection Program, writes to Sec Mnuchin
US Congress on Friday wrote a letter to the US Secretary of the Treasury Steven Mnuchin demanding transparency in the Paycheck Protection Program (PPP).
The United States Congress on Friday, June 13 wrote a letter to the US Secretary of the Treasury Steven Mnuchin demanding transparency in the Paycheck Protection Program (PPP). This comes at the time when Secretary Mnuchin on Thursday, June 10 said that information about the PPP loans is "proprietary" and "confidential" during a Senate committee hearing.
US lawmaker Katie Porter and US Senator Kamala Harris in the letter alleged that Mnuchin is shielding the information about the PPP to protect him and his agencies from having to answer the people of America. The letter listed down numerous factors demanding high-level transparency to be necessitated and appropriated for PPP loans.
The first factor mentioned that traditional loans offered by the small business administration are subjected to extensive disclosure. The second factor is about the expectation of the public visibility established through the language of the PPP application. The unprecedented size and nature of PPP is the third factor. The fourth and the fifth factor states the numerous examples of fraud and abuse that have surfaced within the PPP and the inequity that underscored PPP's implementation respectively.
Demands transparency under section 7(a) of Small Business Act
Porter, who is also a law professor, along with California Senator Harris demanded information of PPP program recipients and award amounts under the 'Freedom of Information Act' from the Department of the Treasury and the US Small Business Administration.
She further informed that PPP loans are 'forgivable' in nature which means that the borrower's information may be 'subject to disclosure' under the 'Freedom of Information Act', under section 7(a) of Small Business Act.
Mnuchin in his testimony had asserted that information provided on PPP forgivable loan applications is "confidential" and "proprietary information' and that is the reason he is not disclosing the names and the individual amount, the letter said. However, the Act allows getting detailed information about nearly every loan that has been issued since 1991.
The letter further stated that PPP is the lifeline for millions of small businesses and their workers. Funded at up to $650 billion, it is also an enormous expenditure of taxpayer dollars.
"Publicily providing basic identifying information about PPP grant recipients and the funding amounts that they received is the absolutely minimum level of transparency that you should afford the American people", the letter stated.
Updated 09:56 IST, June 13th 2020