Bipartisan Group of 28 Members of Congress Call for Lender Eligibility as Borrowers Under PPP in Support of SFNet Position

Today, a bipartisan letter consisting of 28 members of the U.S. House of Representatives urged Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza to allow finance companies to access the Payroll Protection Program. The letter supports SFNet’s position and disagrees with the Treasury/SBA’s interpretation of eligibility of access to PPP.

The letter, spearheaded by Reps. Ted Budd (R-NC) and Blaine Luetkemeyer (R-MO), argues that, “While the PPP was statutorily “housed” in section 7(a) of the Small Business Act so that it could use 7(a) Program loan delivery infrastructure, eligibility for the PPP, a new and separate program, was intended to extend to “any business concern” that meets the applicable CARES Act employee thresholds. The Small Business Administration (“SBA”) unduly narrowed the intended broad statutory scope of PPP eligibility when it by rule rendered ineligible for PPP any business ineligible to borrow under the 7(a)  Program, which includes lending and financing companies.”

Click here to view the letter.