Transparency welcome in PPP loan program
The Treasury Department and Small Business Administration last week disclosed the names of businesses to whom they have lent more than $150,000 as part of the Payroll Protection Program.
The disclosure comes amid demands for more transparency around the PPP program established as part of the $2 trillion CARES Act signed into law this spring.
The loans represent roughly 650,000 mostly small businesses and nonprofits that received taxpayer money through PPP.
Closer to home, 429 businesses in Butler County received loans ranging from $150,000 to $10 million for a total of between $136.65 million and $324 million in federal aid that helped save nearly 17,900 local jobs. This number does not include loans of less than $150,000.
Last week’s disclosure was a welcome sign of transparency in what has been a confusing and convoluted program.
Treasury Secretary Steven Mnuchin sparked an outcry from Democrats when he originally implied that the names of participants in the program would not be disclosed.
The Treasury and U.S. Small Business Administration later reversed course, saying they would disclose names and other details about businesses that took PPP loans of $150,000 and above.
Companies typically must have fewer than 500 workers to qualify for the PPP. As of June 30, the program had handed out $521 billion.
The low-interest business loans will be forgiven if the money is used on payroll, rent and similar expenses.
Trump campaign spokeswoman Samantha Zager stressed that the program helped all Americans, regardless of political party preference
“The PPP was a huge success and saved 51 million American jobs, including at Joe Biden’s old law firm and many companies associated with Obama administration alums,” Zager told the AP. “When the rent or mortgage was due, tens of millions of Americans kept receiving paychecks thanks to President Trump’s leadership.”
With money still available and about $130 billion unclaimed, Congress voted to extend the program just as it was expiring, setting a new date of Aug. 8.
We hope Butler County businesses who missed out on the first round of funding can obtain a slice of second-round funding.
The public may never know the identity of more than 80 percent of the nearly 5 million beneficiaries to date because the administration has declined to release details on loans under $150,000 — the vast majority of borrowers.
That secrecy spurred an open-records lawsuit by a group of news organizations.
Still, the release of the data is the most complete look at the program’s recipients so far and will help taxpayers better understand where their money is going.
