Yesterday U.S. Senator Gary Peters, the lead Democrat on the Senate Homeland Security and Governmental Affairs Committee, called on the Government Accountability Office to investigate how small business funding was being distributed through the Paycheck Protection Program.
The call for an investigation came after it was revealed that publicly traded companies and large corporations had received funds through the program while small and minority-owned businesses across the country and here in Michigan did not. Currently, Michigan ranks 35th out of 50 states for processed Paycheck Protection Program loans.
While Michigan’s families, workers, and business owners continue to struggle in this crisis, Gary Peters is once again speaking out to ensure that they are not forgotten or left behind.
Read more about Gary Peters’ work to ensure Michigan’s small businesses receive the funding they need:
The Detroit News: Peters seeks probe of federal small business loan effort
U.S. Sen. Gary Peters is calling on federal officials to investigate how funds are distributed through a small-business loan program aimed at helping lessen the impact of the COVID-19 crisis amid concerns the funding isn’t going to enough businesses in need.
In a letter Tuesday to the U.S. Government Accountability Office, the Bloomfield Township Democrat discussed issues with the the U.S. Small Business Administration’s Paycheck Protection Program, part of the $2 trillion Coronavirus Aid, Relief and Economic Security Act signed into law March 27.
“As small businesses in Michigan and across the country continue to face dire financial challenges, I am concerned that PPP loans may not have gone to those who need them most,” Peters wrote.
“Over 1 million Michigan residents, many of whom worked for small businesses, have filed for unemployment in the past month alone — the fourth highest in the nation. However, Michigan currently ranks 35th out of 50 states for processed PPP loans. There is also evidence that a substantial amount of PPP loans have gone to large hotel and restaurant chains, rather than the struggling small and minority-owned businesses who may be forced to permanently close their doors without urgent assistance,” he contends.
WNEM: MI Senator calls for investigation into Paycheck Protection Program
The Paycheck Protection Program, established under the CARES Act, is a loan program intended to help small and medium-sized businesses cover operational costs during the COVID-19 pandemic, according to Peters.
Peters said the PPP has been beset with implementation problems, including delayed and unclear guidance to both potential lenders and recipients.
NPR: Small Business Rescue Earned Banks $10 Billion In Fees
Even so, Sen. Gary Peters, a Democrat from Michigan, called on the Government Accountability Office to look into the program after tens of thousands of small businesses were left out and larger companies got millions.
The Hill: Democratic senator wants watchdog to probe Paycheck Protection Program
Peters is asking for the GAO to investigate how the Small Business Administration and lenders determined which businesses to issue loans to, including how loans were distributed by state as well as the number of loans, number of lenders, number of applications, number of loan recipients and total loan amount per location.
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He’s also asking the GAO to investigate how the Small Business Administration made sure lenders and loan applicants complied with the rules of program.
