Blunt Rochester calls on SBA to address Paycheck Protection Program implementation
Rep. Lisa Blunt Rochester on April 20 called on Small Business Administration Administrator Jovita Carranza to address the implementation of the Paycheck Protection Program, established by the Coronavirus Aid, Relief, and Economic Security Act.
The program was intended to provide relief for many small businesses facing economic hardship and uncertainty in the sector.
“Data provided by the SBA illustrates that Delaware saw the approval of nearly 5,000 loan applications and the obligation of $590 million in coronavirus disease 2019 [COVID-19] relief funding,” wrote Blunt Rochester. “While it is reasonable that the majority of relief funding is obligated to more populous regions in the nation, funding appropriated to Delaware appears to be disproportionate even when compared to less populous states. This raises questions as to whether PPP implementation is consistent with disbursement criteria in the CARES Act. More concerning are some reports suggesting that lenders reviewing loan applications have given preferential treatment to business owners who already have loan accounts with that lender.”
The full text of the letter is available at bit.ly/3bntbXg.