Washington, DC – Congresswoman Claudia Tenney (NY-22) today sent a letter to Isabella Casillas Guzman, Administrator of the Small Business Administration (SBA), which is the agency responsible for managing the Paycheck Protection Program (PPP) pandemic relief loans to small businesses. The letter addresses recent news that the SBA granted and forgave a $2.6 million government-provided loan to Planned Parenthood of Central and Western New York’s (PPCWNY), a direct violation of the original terms of PPP established by Congress.
On May 19, 2020, the SBA informed Planned Parenthood affiliates, such as PPCWNY, that they were not eligible for PPP loans due to the program’s affiliation rules and size standards. At a November 17, 2021 hearing with the House Small Business Committee, Administrator Guzman could not answer Tenney’s questions about millions of dollars of loans and forgiveness the SBA has provided for Planned Parenthood affiliates.At a January 12, 2022 hearing, Tenney pressed SBA Inspector General Hannibal “Mike” Ware for information about these illegal loans. As an advocate for life, taxpayer protections, and good governance, Tenney continues to demand answers from the SBA and Planned Parenthood on these illicit loans.
In part Tenney wrote, “…under your watch, the Small Business Administration (SBA) funneled taxpayer funds to an affiliate of the nation’s largest and most notorious provider of abortion on demand. This loan forgiveness is a betrayal of assurances made by the SBA to Congress that any errors in the distribution of PPP loans due to self-attestation would be fixed by the SBA on the back end.”
“It is inexcusable that, while many of America’s small businesses have struggled to survive or even permanently shut their doors during the COVID-19 crisis, abortion giant Planned Parenthood has been allowed to get away with flouting the rules. With over $2 billion in net assets and more than 354,000 abortions carried out just in the last reported year, Planned Parenthood does not need or deserve taxpayer dollars. We thank Congresswoman Tenney for her consistent pro-life leadership and stand with her in demanding that Planned Parenthood repay every dollar obtained illegally from hardworking Americans,” said the Hon. Marilyn Musgrave, VP of Government Affairs at Susan B. Anthony List.
"When establishing the Paycheck Protection Program, Congress was clear in its intent that these loans were not permitted to be issued to Planned Parenthood and its affiliates. While the SBA seems content ignoring this fact, we are grateful that Congresswoman Tenney is seeking to hold the SBA accountable for their disregard for human life by not only issuing the loans but for also forgiving those loans,” said Jessica Anderson, Executive Director of Heritage Action.
The full text of the letter is available here.
Dear Administrator Guzman:
It has recently come to my attention that Planned Parenthood of Central and Western New York (PPCWNY) received full forgiveness for $2.6 million in Paycheck Protection Program (PPP) loans. In other words, under your watch, the Small Business Administration (SBA) funneled taxpayer funds to an affiliate of the nation’s largest and most notorious provider of abortion on demand. This loan forgiveness is a betrayal of assurances made by the SBA to Congress that any errors in the distribution of PPP loans due to self-attestation would be fixed by the SBA on the back end.
Per the original terms of the Paycheck Protection Program, Planned Parenthood affiliates are ineligible to receive loan forgiveness since they do not fall within the program’s affiliation rules and size standards. On May 19, 2020, the SBA notified Planned Parenthood affiliates that they were ineligible for PPP applications due to the affiliation rules and requested that these organizations return their taxpayer funded PPP loans. Even though PPCWNY is clearly an affiliate of the Planned Parenthood Federation of America, which has approximately 16,000 employees, it has successfully subverted the rules established by Congress and illicitly reaped significant financial benefit as a result.
At a November 17, 2021, hearing of the House Small Business Committee, I inquired about several concerns I had regarding millions of dollars in loans and forgiveness that SBA has provided to Planned Parenthood affiliates. While you were unable to speak to my specific concerns at the time and have not followed up to reply to my inquiries, I am optimistic that you may be able to do so within the specific parameters of this case.
Therefore, I request answers and clarification to the following questions regarding the SBA’s forgiveness of $2.6 million in federal PPP loans to PPCWNY: - Are you aware that Planned Parenthood affiliates, including PPCWNY, received PPP loans and forgiveness on those loans?
- According to the SBA’s own letter from May 2020, Planned Parenthood affiliates are ineligible to receive PPP loans. Please provide me with a written justification for the SBA’s reversal of this determination.
- How does SBA’s decision to grant forgiveness for Planned Parenthood affiliates comply with the affiliation rules established by Congress?
- What criteria was used in your determination that allowed Planned Parenthood of Central and Western New York to receive PPP loan forgiveness?
I look forward to hearing your responses to these important questions, and I urge you to follow the law and ensure that taxpayer funds provided to Planned Parenthood affiliates under the PPP program are returned to the federal government.
Thank you for your time and attention to this matter.
Sincerely,
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