In a recent interview with The Business Journals, the SBA stated that it plans to make details of PPP loans public, in alignment with the U.S. District Court’s ruling last November. SBA Administrator Isabel Guzman stated in the interview that “There is no intent to withhold” the information and the SBA has not appealed the Judge’s decision.
Originally, the SBA announced that it would only release limited information about who received a loan, in order to protect small businesses ’ confidential information, as well as their right to privacy. This limited information included business names, addresses, NAICS codes, loan amounts, and other demographic data. The data the SBA was willing to release was even less if the PPP loan amount was less than $150,000. However, on November 5th, 2020, U.S. District Judge James Boasberg ordered the SBA to release the “names, addresses, and precise loan amounts of all individuals and entities” that obtained PPP and EIDL loans.
Almost 12 Million Loans Will Become Public
The SBA has until the end of June to clear PPP loans still in the process, so it is unlikely that any information will be released before then. The eventual disclosure will make public almost 12 million loans. Companies who may have received a PPP and/or an EIDL loan should be aware that their information will become available to the general public. Even if your small business met all of the requirements that make PPP loans forgivable, you should still be prepared to defend the loan in the face of media scrutiny and other unwarranted solicitations from third parties. Companies should ensure that they take the necessary precautions to protect themselves.
On another note, the SBA is currently working to fix forgiveness issues that have arisen due to typos and other nominal issues. It is also exploring how it can make PPP loan forgiveness an easier process, especially for those who took out loans of $150,000 to $2 million. Finally, due to the increased scrutiny surrounding the PPP loan program, PPP loan recipients should continue to ensure that they have appropriately documented their need for the PPP loan and their use of the loan proceeds (Add link to PPP loan scrutiny article).
KJK’s PPP Team is Here To Help
KJK continues to be on top of this unique program and assisting clients to navigate through the Payroll Protection Program. If you have any questions or need further information, please feel free to contact our PPP Team including Demetrius Robinson at firstname.lastname@example.org or 614.427.5749