The National Federation of Independent Business (NFIB) has filed an amicus brief supporting the Small Business Administration (SBA) withholding records regarding the Paycheck Protection Program (PPP).
Officials said the action stems from the case Washington Post v. U.S. Small Business Administration (SBA) at the U.S. District Court in Washington, D.C., concerning records under the Freedom of Information Act (FOIA) about loan status and personal information of borrowers.
“Many small businesses have benefited from the Paycheck Protection Program during the COVID-19 pandemic,” Karen Harned, executive director of NFIB’s Small Business Legal Center, said. “The program was designed to help business owners pay their employees and meet financial obligations during an economic crisis that was of no fault of their own. Disclosing borrower information is not what small employers signed up for and is a violation of their privacy.”
The case seeks to determine whether the SBA can withhold records containing loan status, Social Security Number, or Employer Identification Number of borrowers via the PPP initiative. The NFIB maintains the SBA properly withheld the personal information under FOIA’s exemptions.
The NFIB’s Small Business Legal Center seeks to protect small business owner rights in the court system. The organization is presently active in more than 40 cases in federal and state courts nationwide and the U.S. Supreme Court.