Congresswoman Claudia Tenney Presses SBA Administrator Over PPP Loans Provided Illegally to Planned Parenthood

Washington, DC – Congresswoman Claudia Tenney (NY-22), member of the House Small Business Committee, today pressed the US Small Business Administration (SBA) Administrator, Isabella Casillas Guzman, on why the SBA provided Paycheck Protection Program (PPP) loans to Planned Parenthood when the law passed by Congress made clear that the organization did not qualify for PPP loans. Tenney further pressed Guzman on whether she plans to deny forgiveness for such loans and when she will require the nation’s leading abortion provider to fully repay the American taxpayer for federal funding provided illegally by the SBA. 

The full exchange between Tenney and Guzman can be viewed at the video linked here. 

Tenney: Thank you, Administrator, for being here today. 

I did send you a list of questions in May and I’m hoping that at some point you’ll follow up since I haven’t received an answer yet. I know you’ve needed time to get yourself organized in the position but we really have pressing questions that we need to answer. 

Tenney:  During your confirmation hearing in the Senate, you promised to investigate why the SBA wrongfully approved small business loans for multiple Planned Parenthood affiliates. However, since the SBA has proceeded to confirm an additional six loans for Planned Parenthood affiliates including $10 million for Planned Parenthood of Greater New York. As you are aware, and as this legislation states, federal funds cannot be used to pay for abortion and all applicants for PPP loans must abide by affiliation rules and size standards. Since Planned Parenthood has over 16,000 employees nationwide, that makes them ineligible. Has the SBA forgiven any of the PPP loans that have gone to Planned Parenthood? 

Guzman: I don’t have a status on individual loans to share with you. 

Tenney: Have any of the (PPP loans), that you know of generally, been forgiven? 

Guzman: That I am not aware of. I know that we have continued to process those loans in the order, and as you know borrowers attest under PPP for their eligibility. 

Tenney: Will you forgive those loans at this point? Is that a policy that you’re taking?

Guzman: Fortunately, it’s not up to me to determine individual loans. There’s a process in place for all of the loans. 

Tenney: Okay, but you as the Administrator have the ultimate say. Will you actually not allow the forgiveness (of the loans)? And will you ask them to pay the money back? 

Guzman: They will be processed according to the rules that were administered by the SBA that have been made public and that have been shared with our lenders. 

Tenney: So what you’re saying is that based on the rules and based on the legislation that you will be denying those loans, and that you will also be requiring them to pay back based on the rules issued?

Guzman: I’m not speaking to any individual PPP eligibility. 

Tenney: Couldn’t you say that based on the rules that we just outlined, the fact that they’re not eligible that you would say in a reasonable estimate that those loans would not be forgiven, and therefore you would ask for that money to be paid back?

Guzman: I’m not the one who individually investigates the specific eligibility. 

Tenney: I’m asking you as the Administrator. You obviously have a position. You would ultimately make this decision if it came to your desk.

Guzman: My positions and my political choices are not at play here. It’s really just the process and the rules that are in place for both the borrowers to attest to their eligibility and for the lenders to determine if they will process based on eligibility and attestation. 

Tenney: If it was determined by your people, and the people that work under you, that they were actually forgiving the loans, would you overrule that decision because it’s not based on the rules that are set forth in the statute. 

Guzman: I would not overrule the processing that’s in place that is abiding by the rules. So, the process does abide by the rules and determines eligibility. Again, borrowers attest to the eligibility, the bankers are then processing those PPP loans. 

Tenney: Do you know the rules that say that they’re not eligible? Is that something you’re aware of? 

Guzman: I know our affiliation rules broadly, but I’ve not investigated any particular loans of the 11 million loans that we’ve processed at the SBA. 

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