Small Business Administration announces it will disclose the names of PPP borrowers who accessed more than $150,000 in major reversal
Treasury Secretary Steven Mnuchin speaks during a Senate hearing on small business and entrepreneurship to investigate the implementation of Title I of the CARES Act on Capitol Hill, Washington on June 10, 2020. (Al Drago / Pool via AP)
The Small Business Administration announced on Friday that it will announce the names of PPP borrowers for loans over $ 150,000.
Certain loan amounts are not disclosed, but company information is provided in groups that are broken down by loan size range.
Only 14% of PPP borrowers accessed loans over $ 150,000, but they account for almost 75% of the loans granted under the program.
Treasury Secretary Steven Mnuchin had previously raised concerns about the disclosure of specific credit data for privacy reasons.
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The Small Business Administration will announce the names of borrowers who have received PPP loans for more than $ 150,000. The decision was announced on Friday under pressure from the Senate Small Business Committee to increase the transparency of the $ 670 billion federal program.
The SBA announces that company names, addresses, business type, demographic data, number of supported jobs and other details will be disclosed. However, certain loan amounts per company are not disclosed. Instead, the SBA will split borrowers by loan amount range, with the lowest between $ 150,000 and $ 300,000 and the highest between $ 5 and $ 10 million.
The decision is made after Treasury Secretary Steven Mnuchin previously raised concerns about disclosing specific credit data for privacy reasons because the PPP loan amounts are based on historical salary information.
The SBA has not specified when the data will be published.
While only 14% of PPP borrowers accessed loans over $ 150,000, the SBA says they account for almost 75% of total loans issued.
"We strive to strike the right balance between public transparency and protecting the salary and income information of small businesses, sole traders and independent contractors," Mnuchin said in a statement.
Republican Florida Senator Marco Rubio, who chairs the Senate Small Business Committee, supported the decision.
"The American people deserve to know how effective the PPP has been in protecting the small businesses of our country and the tens of millions of Americans who employ them. We need to measure the success of the PPP by this measure: how many paychecks were protected?" Rubio said in a statement on Friday.
Acknowledging the concerns of business owners about the disclosure of proprietary information, Rubio said that the agreement "strikes a balance between these concerns and the need for transparency."
The PPP program has undergone a number of changes since it was launched in April. To ensure lending, borrowers now have 24 weeks to spend the money (originally 8 weeks) and 60% must be used for payroll, compared to the original 75% requirement.
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