House Committee on Small Business Chairman Roger Williams (R-TX) has forwarded correspondence to the Small Business Administration (SBA) regarding its decision regarding Paycheck Protection Program (PPP) loan collection.
Williams is questioning the SBA’s decision to end the collection on PPP loans with an outstanding balance of $100,000 or less.
“The Small Business Administration’s decision raises fundamental questions about the proper stewardship of American taxpayer dollars,” Williams said. “During the COVID-19 pandemic, the SBA issued nearly $800 billion in loans to almost 12 million businesses, and unfortunately, there were many criminal opportunists that defrauded this pandemic assistance program.”
Williams sent a letter to SBA Administrator Isabella regarding the agency’s PPP loan collection decision.
“The Committee seeks to better understand this decision and the economic analysis conducted prior to making the decision,” Williams wrote.
According to Williams, the PPP closed on May 31, 2021, after making approximately 11.8 million loans, totaling $799.8 billion. Of the 11.8 million loans, per Williams, approximately 10.1 million loans, totaling $228.7 billion, were valued at $100,000 or less.
In the letter, Williams requested documents and information on behalf of the House Committee on Small Business, including the total number of purchased PPP loans valued at $100,000 or less impacted by the SBA’s April 27, 2022 policy; all communications between and among SBA staff relating to the April 27, 2022, decision to end collection on purchased PPP loans; and all documents and evidence relied upon in making the determination that the cost to collect the purchased PPP loans would likely be more than the recovery amount.