Washington, D.C. -Today, Rep. Carolyn B. Maloney, the Chairwoman of the Committee on Oversight and Reform, and Rep. Nydia M. Velázquez, the Chairwoman of the Committee on Small Business, sent a letter to the Small Business Administration (SBA) and the Department of Treasury demanding documents regarding SBA’s attempts to target local Planned Parenthood organizations that have participated in the Paycheck Protection Program (PPP).
The PPP was created to help all eligible recipients-including both for-profit and 501(c)(3) not-for-profit organizations-regardless of ideology or politics. Because local Planned Parenthood organizations operate as independent 501(c)(3) organizations, those that have 500 or fewer employees are not barred from participating in the PPP, consistent with SBA’s rules governing affiliation status and size.
“In May, SBA sent letters to numerous local Planned Parenthood organizations inaccurately informing them that they were ineligible for loans under the program due to their association with Planned Parenthood Federation of America," wrote the Chairwomen. “We are concerned that SBA’s actions were part of a coordinated effort to use the coronavirus pandemic to attack Planned Parenthood health centers on ideological grounds."
Conservative media outlets began reporting on the SBA letters before they were even received by Planned Parenthood recipients, raising questions about whether the letters were intentionally disseminated to press.
On May 28, Chairwomen Maloney and Velázquez led more than 160 Members of Congress in sending a letter urging SBA and Treasury to cease their ideologically motivated attacks against local Planned Parenthood organizations and instead focus on providing America’s small businesses and not-for-profit organizations with the critical support they need during the coronavirus crisis.
On July 6, SBA and Treasury disclosed a partial list of PPP recipients that revealed that numerous 501(c)(3) organizations with similar affiliate structures to Planned Parenthood health centers received PPP loans. SBA also appears to have awarded PPP loans to ideologically-driven advocacy organizations, such as the American Family Association and the American Center for Law and Justice, and a number of crisis pregnancy centers-which do not offer the same comprehensive range of reproductive health care services as Planned Parenthood health centers.
“To date, there have been no reports of SBA informing these organizations of their ineligibility to participate in the PPP, which draws into question whether the program is being administered free of ideological bias," added the Chairs.
The Chairs demanded the information and documents by August 6, 2020.
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