Udall, Heinrich Introduce Legislation To Require Transparency Of Small Business Loans Amid COVID-19 Crisis
The lawmakers are also encouraging New Mexico small businesses and nonprofits to apply for PPP assistance before the June 30 deadline
WASHINGTON – U.S. Senators Tom Udall (D-N.M.) and Martin Heinrich (D-N.M.) introduced the Paycheck Protection Program Transparency Act, legislation that requires the Small Business Administration (SBA) to release data on companies receiving loans from the Paycheck Protection Program (PPP) amid the COVID-19 crisis. The bill comes after reports of PPP loans going to rich corporations, while shutting out small businesses– particularly small businesses in minority communities.
Udall and Heinrich are also urging New Mexico small business owners and nonprofits affected by the COVID-19 pandemic to apply for funding through the U.S. Small Business Administration (SBA) Paycheck Protection Program before the deadline on Tuesday, June 30. These loans are fully guaranteed by the SBA, and can be forgiven if small businesses meet certain requirements, including utilizing 60% of the loan for payroll.
“The COVID-19 pandemic has hurt many small businesses across New Mexico and the United States. When trying to access critical assistance from the federal government, small businesses shouldn’t lose out to large corporations that don’t need the funds,” said Udall, a senior member of the Senate Appropriations Committee. “It is our responsibility to not only ensure that taxpayers know where their hard-earned dollars are going, but also to support the small businesses and workers that are the backbone of our economy and communities. As we recover from COVID-19 and its economic consequences, we must also hold the Trump administration accountable for putting corporate profits ahead of our small businesses.”
“In the midst of the greatest public health crisis of our generation, we need oversight that ensures the administration is providing assistance to New Mexico small businesses – and not bailing out wealthy corporations,” said Heinrich. “I am proud to introduce the Paycheck Protection Program Transparency Act to improve transparency on how the administration is delivering COVID-19 funds and ensure that businesses that need relief receive it. The funding for this assistance is still available, and lenders across New Mexico are ready to process applications. I encourage small business owners in need of assistance to connect with their preferred lender and get started on an application before the deadline. ”
The Paycheck Protection Program Transparency Act:
- Require the Small Business Administration (SBA) to create a free public website with information about Paycheck Protection Program (PPP) loans available in a downloadable format.
- The website should be created within 30 days and updated no less than every seven days thereafter.
- Required information for borrowers includes:
- Name of the borrower;
- Amount received, and date of receipt;
- Location including city, state, ZIP, and congressional district;
- Number of employees at the time of receipt;
- Whether the borrower is controlled by socially and economically disadvantaged individuals, women, or veterans;
- Tax status; and
- Funds returned, if applicable.
Bill text can be found HERE.
A one pager on the bill can be found HERE.
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