June 23 2020
By Caity Witucki
Contributing Editor, Hot Topic Tuesday
Hot Topic Tuesday — SBA and Treasury to Publish Names of Some PPP Loan Recipients
On June 19, 2020, the SBA and U.S. Department of Treasury announced their intent to release PPP data in order to ensure transparency and effectiveness in the program. According to the official press release, the SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported, and loan amount ranges for loans between $150,000 and $10 million (nearly 75% of all PPP loans). For loans below $150,000, totals will be released, aggregated by zip code, by industry, by business type, and by various demographic categories.
“We value transparency and our fiduciary responsibility to ensure American taxpayer funds are used appropriately. This responsibility goes together with the steps we are now taking to provide needed public information while protecting entrepreneurs’ personally identifiable information, such as a home address associated with their business loan,” says SBA Administrator Jovita Carranza.
The announcement has sparked some controversy as The Senate and Treasury Secretary Mnuchin have both previously denied the release of PPP borrowers’ names. On May 5th, the Senate blocked legislation introduced by Cardin, Schumer, and several others that would have required the SBA to provide Congress and the public with timely, detailed borrower data. A month later, Mnuchin said at a Senate hearing that the names of loan recipients and the amounts were “proprietary information.”
“From the beginning of this economic crisis, Congress has been working to ensure that the implementation of PPP meets the standard of transparency the American people deserve,” says Senator Cardin. “I am pleased that the Trump Administration reversed course from its initial refusal to disclose this data following calls for transparency from me, Chairman Rubio, and our Democratic and Republican colleagues. As Congress begins to consider the best way to continue supporting small businesses in the weeks and months to come, this data will help ensure that we are able to get capital as quickly as possible to the small businesses that need it most.”
Currently, the SBA releases a report detailing the distribution of PPP funds by NAICS sector on a weekly basis. The SBA and Treasury have not yet announced when borrower names will be added to the report.