Enhanced Transparency Regarding the Paycheck Protection Program
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On June 19, 2020, the U.S. Small Business Administration and the U.S. Department of the Treasury announced that the identity of certain recipients of Paycheck Protection Program (PPP) loans will be publicly announced, along with other details regarding the loans received.
06.22.20
Under the new transparency program, the names of recipients receiving PPP loans greater than $150,000 will be disclosed, along with their addresses, NAICS codes, zip codes, business type, demographic data, jobs supported, and loan amount ranges rather than the exact loan amount disbursed. The loan amount ranges that will be disclosed are:
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- $150,000 – $350,000
- $350,000 – $1,000,000
- $1,000,000 – $2,000,000
- $2,000,000 – $5,000,000
- $5,000,000 – $10,000,000
The SBA estimates that publicly disclosed recipients will account for approximately 75% of all approved PPP loan dollars. Similar details will be released for any business that received less than $150,000, although the name of the business will be redacted.
The bipartisan agreement is in contrast to earlier statements made that business names would remain private, despite a lawsuit filed by multiple news organizations calling for disclosure and transparency.
The SBA Focus Group of the COVID-19 Task Force at Klehr Harrison stands ready to assist you in your business and legal needs. We will continue to provide additional information and guidance as the PPP loan program is implemented.
Author Matthew McDonald is a partner in the Corporate & Securities Department at Klehr Harrison.