On Monday, Republican Whip and Select Subcommittee Ranking Member Steve Scalise (R-La.) released the following statement in response to the Small Business Association’s release of new borrower data about the Paycheck Protection Program:
“The information released today makes it clear that both the Trump administration and America’s private banks stepped up and moved mountains in getting economic relief to this country’s small businesses and struggling workers in our time of need. We asked for the largest relief effort in American history and they delivered without hesitation,” said Ranking Member Scalise. “I also want to commend SBA for their transparency in turning over this information to Congress and making it publicly available. Not only has the administration shown they are working around the clock to bring us through this crisis, they are taking concerted steps to be faithful stewards of the taxpayers’ money in the process.”
The truth about the PPP program:
- The PPP has given out 4.9 million loans from 5,458 lenders totaling over $521 billion.
- The program has helped approximately 50 million American workers and over 72 percent of our country’s small businesses.
- In just a few weeks, the administration increased from the 1,700 lenders that participated in 7(a) in 2019 to nearly 5,500 lenders for PPP.
- More than 70% of PPP loans were given to businesses with less than 10 employees.
- $106 billion has been provided to businesses in Historically Underutilized Business Zones (HUBZones), accounting for more than 20% of all PPPfunding.
- Data from the administration show approximately 210,000 PPP loans totaling $16.3 billion to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).
- 424 CDFIs and MDIs across the country participated in PPP.
- In a series of briefings the banks confirmed to the Select Subcommittee that the legal requirements to gather information from new customers allowed applications from existing clients to move through the process faster, contrary to Democrats’ allegations that certain parties received preferential treatment.
- The information obtained by the Select Subcommittee showed that Treasury and SBA took a series of actions while the program was open to ensure rural and underserved businesses were prioritized, including a dedicated window for lending institutions with asset sizes less than $1 billion dollars.