ICYMI: Rep. Spano Questions SBA Inspector General on PPP Program
Exercises Oversight Authority over the SBA’s Paycheck Protection Program
Washington, May 16, 2020
Tags: Economy / Small Business
Washington, D.C. – Yesterday, U.S. Representatives Ross Spano (R-FL), who serves as the ranking member of the Subcommittee on Investigations, Oversight and Regulations on the House Small Business committee co-chaired a virtual forum, in which the Inspector General (IG) responsible for overseeing the Small Business Administration, Mike Ware, testified. The briefing focused on overseeing the SBA’s Paycheck Protection Program (PPP).
“As a former small business owner, I can appreciate what this program has meant to my community. As small businesses across the nation begin reopening their doors, many will do so in part because of PPP and the sheer determination of their owners,” said Rep. Spano. “This historic SBA program has helped thousands of businesses in our district and as promised, I will provide the proper oversight and accountability tax-payers demand.”
The forum comes after the SBA IG issued his Flash Report on the SBA’s implementation of the Paycheck Protection Program this past May 8th. In this report, he included various recommendations for the SBA to improve upon the program, including issuing additional guidance on currently ambiguous aspects and evaluating potential negative consequences of the SBA-enacted requirement that borrowers must spend at least 75% of the loan on payroll to be eligible for full forgiveness..
On March 27, 2020 Congress passed, and the President signed, the CARES (Coronavirus Aid, Relief, and Economic Security) Act. This legislation created the PPP and initially provided $349 billion in forgivable loans to the small businesses. The SBA commenced lending under this program on April 3, 2020, and due to overwhelming demand, the funding was depleted by April 16th, leading Congress to appropriate an additional $310 billion on April 24. As of May 9th, the SBA has approved over 4.2 million loans for a total of more than $530 billion and its estimated the program has saved over 30 million American jobs.
For more information on actions Rep. Spano has taken related to COVID-19 and assisting local small businesses, visit Spano.House.Gov.
To watch the virtual forum, click here.