Stevens Calls for Greater Transparency, Improved Access for Paycheck Protection Program
ROCHESTER HILLS, MI — Today, Congresswoman Haley Stevens (MI-11) called for greater transparency and improved access to the U.S. Small Business Administration’s Paycheck Protection Program. Created as part of the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act which passed on March 27th, the Paycheck Protection Program is a loan program designed to incentivize small businesses to keep their workers on payroll. The Paycheck Protection Program received $349 billion in the CARES Act, which was depleted by April 16th. On Tuesday, the United States Senate approved an additional $310 billion for the loan program.
In a letter to the leaders of the House Committee on Small Business, Congresswoman Stevens identified ways to improve the Paycheck Protection Program after hearing frustrations from small business owners in Michigan’s 11th District who had trouble getting the support they need.
“According to the Small Business Administration’s accounting update for the initial phase of the PPP program, four percent of the loans were for over $1 million, consisting of nearly 45 percent of the total money disbursed through the program,” said Congresswoman Stevens. “Congress needs to ensure greater transparency on who is receiving these loans to ensure that borrowers who are asking for smaller amounts are prioritized as well. Another issue with the initial phase of PPP has been the level of funding given to the states who have been hit with the most severe economic and public health impacts of the COVID-19 pandemic. My home state of Michigan has been hit particularly hard with the sixth highest rate of cases in the country and nearly a quarter of the state’s workforce applying for unemployment. Despite this clear need, Michigan is currently 35 out of 50 states when it comes to PPP loans processed.”
The full text of the letter can be found here or below.
“Dear Chairwoman Velázquez and Ranking Member Chabot,
Thank you for your continued leadership to help our country’s small businesses as they struggle with heartbreaking decisions on how to meet payroll costs and rent bills while keeping their employees safe and healthy during this global COVID-19 pandemic. While the Paycheck Protection Program (PPP) is an important part of helping small businesses to meet these challenges, we need greater transparency and guardrails to enable improved access to PPP funds for all eligible borrowers.
Through the rollout of PPP and the initial lending data, it appears that the funding has not been widely disbursed to those the program was intended to serve. According to the Small Business Administration’s accounting update for the initial phase of the PPP program, four percent of the loans were for over $1 million, consisting of nearly 45 percent of the total money disbursed through the program. Congress needs to ensure greater transparency on who is receiving these loans to ensure that borrowers who are asking for smaller amounts are prioritized as well.
Another issue with the initial phase of PPP has been the level of funding given to the states who have been hit with the most severe economic and public health impacts of the COVID-19 pandemic. My home state of Michigan has been hit particularly hard with the sixth highest rate of cases in the country and nearly a quarter of the state’s workforce applying for unemployment. Despite this clear need, Michigan is currently 35 out of 50 states when it comes to PPP loans processed. According to SBA data, many states with the most COVID-19 cases also rank in the bottom third of states receiving PPP loans while states with a low number of COVID-19 cases have received the greatest number of PPP loans.
Since the PPP began, I have heard from small businesses in my district about obstacles that have prevented them from getting the necessary funds, from the lack of guidance and oversight for lenders to the lack of transparency in distribution. I look forward to working with your committee and our leadership on additional guardrails and protections to ensure access to this program for all eligible borrowers.”
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