House Democrats overseeing the Trump administration’s coronavirus response are asking major financial institutions to fork over reams of information about businesses that obtained government-backed loans to remain afloat amid the pandemic.
The request, led by House Majority Whip James Clyburn and six colleagues, came after Treasury Secretary Steven Mnuchin said the government would not reveal the names of the Paycheck Protection Program’s nearly 4.6 million loan recipients––even though the PPP loan application told borrowers their information would be released.
pressured some businesses to return multimillion-dollar loans, a name-and-shame strategy that Republicans said was misguided.
On Monday, Carranza urged lenders participating in the Paycheck Protection Program to focus attention on the communities most in need before the program stops taking applications for new aid.
Carranza asked banks to “redouble your efforts to assist eligible borrowers in underserved and disadvantaged communities, allowing us to expand economic opportunity, before the upcoming deadline of June 30, 2020, to obtain a loan number for a PPP loan.”
“SBA wants to ensure that entities in underserved and rural markets, including veterans and members of the military community, small business concerns owned and controlled by socially and economically disadvantaged individuals, women, and businesses in operation for less than two years benefit from PPP,” she said in the message.
Almost $130 billion remains in the business aid program. Rubio said on Twitter Monday that racial disparities during the Covid-19 outbreak and economic downturn will be a focus in “our next phase of PPP.”