On June 19, the Small Business Administration and Treasury Department announced they will disclose detailed information about employers who received loans under the Paycheck Protection Program, the key program to provide employers with liquidity needed to mitigate economic damage resulting from the COVID-19 pandemic.
The information to be made public will include names and other information about companies and nonprofits that received loans greater than $150,000. For these loans, the disclosure will not reveal the exact amount of the loan but rather a dollar range for each company’s loan according to the following categories: loans between $150,000 and $350,000; between $350,000 and $1 million; between $1 million and $2 million; between $2 million and $5 million; and between $5 million and the maximum loan amount of $10 million. For loans less than $150,000, the name of the company will not be publicly disclosed; instead, total loan amounts for the entire PPP will be released aggregated by ZIP code, industry, business type and various demographic categories.
“I am pleased that we have been able to reach a bipartisan agreement on disclosure which will strike the appropriate balance of providing public transparency, while protecting the payroll and personal income information of small businesses, sole proprietors, and independent contractors,” said Secretary of the Treasury Steven Mnuchin in a press release.
Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.), chairman and ranking minority member of the Senate Small Business Committee, respectively, had been pushing the administration for all PPP loan recipients to be identified by name. The SBA and Treasury Department had expressed concern that such disclosures could reveal proprietary information regarding the borrowers because the loans are based on payroll costs. Rubio signaled his satisfaction with the decision as striking a compromise between the “concern that many small business owners have with regard to disclosing proprietary information …and the need for transparency.”
NRCA members interested in applying for a PPP loan still may do so through June 30 and should consult their lenders and/or financial professionals. Learn more.
Date : Jan. 01, 0001