U.S. Democratic lawmakers, in letters to the chief executives of countless large banks, demanded the release of documents associated with loans made under the government's Paycheck Protection Program (PPP), CNBC reported.
In reaction to reports that the PPP favored large corporations over smaller businesses, a subcommittee on the coronavirus contacted CEOs at JPMorgan Chase, Bank of America, Santander Bank, Wells Fargo, US Bancorp, Truist, Citibank and PNC to determine if the government's intent to assist smaller businesses was shirked by the banks, House Majority Whip James Clyburn said.
The PPP, passed as part of the CARES Act in March, established financing program for businesses hit through the pandemic to become administered through the Sba (SBA). By last Friday (June 12), it has distributed 4.5 million loans totaling $512 billion, and there's one more $130 billion that can be spent.
Clyburn and other Democrats wrote that their intent was \”to increase transparency so taxpayers can easily see whether federal money is being diverted due to waste, fraud, and abuse,\” and to ensure that the rest of the funds dispersed are utilized as intended, to visit toward small businesses ravaged through the coronavirus.
The push is available in reaction to statements by Treasury Secretary Steven Mnuchin the government didn't plan to release a full list of the companies that benefited from the PPP. Clyburn and the other Democrats are requesting a full listing of the beneficiaries from the loans given out and also the amounts.
Mnuchin, in a tweet, vowed to talk with lawmakers of both parties about releasing information, and to utilize \”the appropriate balance for proper oversight\” on the loans.
The reason Mnuchin initially did not want to release information was \”privacy concerns,\” CNBC reported. That did not sit well with Democrats, with Senate Minority Leader Chuck Schumer saying it was only raising more suspicions as to who the government's financial aid was actually benefiting. Rep. Katie Porter and Sen. Kamala Harris wrote to Mnuchin and SBA Administrator Jovita Carranza requesting correspondence with banks and other documents.
Mnuchin continues to be optimistic concerning the PPP to date, saying it has supported payroll for three-quarters of small , medium-sized businesses (SMBs) in 50 states.
