US Senator Ron Wyden,
Press Release,
Oregon’s U.S. Senators Jeff Merkley and Ron Wyden, along with 20 of their colleagues, are pushing Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza to develop strong supervisory mechanisms to identify instances of unjust enrichment and ensure that the just-passed Paycheck Protection Program (PPP) funding actually reaches struggling small businesses who truly need the money.
The senators’ letter comes amid recent reports indicating that the initial distribution of $350 billion in funding to the program was not limited to struggling small businesses and has boosted owners whose businesses have not been subject severe financial strain—crowding out more deserving applicants from assistance.
“As small business owners await distribution of the additional funding provided for the program in the Paycheck Protection Program and Health Care Enhancement Act, it is critical that the funding provided by Congress be used to provide loans to the businesses whose owners and employees’ livelihoods are truly at risk as a result of the pandemic. Unfortunately, reports indicate that the distribution of the initial round of funding was not limited to struggling small businesses who truly needed the money to remain in operation,” the senators wrote.
“For these reasons, we urge you to develop strong supervisory mechanisms to identify instances of unjust enrichment,” the senators continued. “This is not just a matter of rooting out fraud and abuse—the funding for this program, which we support, is necessarily finite. Every loan that provides a windfall for an applicant who does not truly need it results in one fewer loan made to a struggling small business owner whose employees could be truly helped by this funding.”
This letter follows disturbing reports that major companies, including national restaurant and hotel chains valued at billions of dollars, were able to access PPP loans while many small and independent businesses were shut out. While some of these businesses have agreed to return their loan funding under pressure, many others have not.
Today’s letter is the most recent of a series of steps by Senator Merkley to press the Trump administration to put the interests of small business owners, workers, trade organizations, and unions above the wish lists of massive corporations with deep pockets and lobbying budgets. Previously, Merkley shared concerns he heard from small businesses across Oregon regarding the accessibility of emergency assistance with Secretary Mnuchin and SBA Administrator Carranza, and demanded that the SBA immediately fix a number of specific PPP implementation problems; including the prioritization of bigger, more lucrative customers for priority access to the program, and the need to clarify eligibility information for community hospitals and other critical groups.
Merkley and Wyden were joined in sending today’s letter by U.S. Senators Amy Klobuchar (D-MN), Tammy Baldwin (D-WI), Richard Blumenthal (D-CT), Catherine Cortez Masto (D-NV), Dick Durbin (D-IL), Tammy Duckworth (D-IL), Dianne Feinstein (D-CA), Kirsten Gillibrand (D-NY), Kamala Harris (D-CA), Mazie Hirono (D-HI), Angus King (I-ME), Patrick Leahy Leahy (D-VT), Ed Markey (D-MA), Chris Murphy (D-CT), Jack Reed (D-RI), Bernie Sanders (I-VT), Tina Smith (D-MN), Tom Udall (D-NM), Chris Van Hollen (D-MD), and Elizabeth Warren (D-MA).
See letter here.
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