Tag: Trump SBA

Treasury, SBA data show small-business loans went to private-equity backed chains, members of Congress

Washington Post logoAlmost 90,000 employers also appear to have received money despite not saying how many jobs they would save

As part of its $660 billion small-business relief program, the SBA also handed out loans to private schools catering to elite clientele, firms owned by foreign companies and large chains backed by well-heeled Wall Street firms. Nearly 90,000 companies in the program took the aid without promising on their applications they would rehire workers or create jobs.

The data, which was released after weeks of pressure from media outlets and lawmakers, paints a picture of a haphazard first-come, first-served program that was not designed to evaluate the relative need of the recipients. While it buttressed a swath of industries and entities, including restaurants, medical offices, car dealerships, law firms and nonprofits, the agency did not filter out companies that have potential conflicts of interest among influential Washington figures. Continue reading.

SBA exempted lawmakers, federal officials from ethics rules in $660 billion loan program

Washington Post logoA ‘blanket approval’ allowed Congress, officials and their families to receive Paycheck Protection Program funds without a required conflict of interest review

A brief and barely noticed “blanket approval” issued by the Trump administration allows lawmakers, Small Business Administration staff, other federal officials and their families to bypass long-standing rules on conflicts of interest to seek funds for themselves, adding to concerns that coronavirus aid programs could be subject to fraud and abuse.

Under normal circumstances, lawmakers and some federal employees who apply for small business funds in some cases have to seek approval of a little-known SBA body called the Standards of Conduct Committee. The rule applies to officials who are business owners, officers, directors or shareholders with a more than 10 percent business interest, plus any “household members” of those officials.

But in a rule the administration issued April 13, the administration disclosed that the approval requirement had been suspended for all entities seeking funds from the $660 billion program “so that further action by the [ethics committee] is not necessary.” Continue reading.

Treasury, SBA cave to demands for bailout transparency

The Trump administration sparked controversy last week when it said it would not reveal the names of companies that received loans.

The Treasury Department and Small Business Administration bowed to congressional pressure Friday and said they will disclose information on companies that received loans under the government’s massive small business rescue program.

The names of companies and nonprofits that got loans larger than $150,000 under the Paycheck Protection Program will be released, along with other identifying information, the agencies said in a statement. Loan amounts will only be given within a certain range.

Treasury Secretary Steven Mnuchin said the move represents an agreement with the bipartisan leaders of the Senate Small Business Committee, which is headed by Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.). Those lawmakers had asked for all borrowers to be identified; the deal will cover nearly 75 percent of the more than $500 billion that has been lent out, though only a minority of the 4.5 million total beneficiaries. Continue reading.

Thousands flood banks as federal small-business loan program has a chaotic first day

Washington Post logoFinal regulations for the $349 billion SBA program weren’t released until just hours before the program began, and many of the nation’s biggest lenders weren’t ready

The launch of a $349 billion loan program that is key to the government’s hopes of helping the nation’s small businesses survive the economic downturn got off to a rocky start Friday as the big banks in charge of doling out the money said they weren’t prepared or were limiting applicants to their closest customers.

Wells Fargo, Citigroup and PNC said they were still reviewing the program’s rules, which were released by the Treasury Department and Small Business Administration just hours before the program’s launch. JPMorgan Chase, the country’s largest bank, didn’t begin accepting applications until 1 p.m., after initially saying it wouldn’t be ready at all Friday.

Bank of America was one of the few big banks that began taking applications Friday morning, earning the praise of President Trump. “Great job being done by @BankofAmerica and many community banks throughout the country. Small businesses appreciate your work!,” Trump said on Twitter. Continue reading.