Elizabeth Warren and Nydia Velázquez ask to investigate Cares Law small business loans

Elizabeth Warren And Nydia Velázquez Ask To Investigate Cares Law Small Business Loans

Washington, D.C. – Senator Elizabeth Warren and Congresswoman Nydia Velázquez called on the Inspectors General of the Treasury Department and the Small Business Administration (SBA) for a comprehensive investigation into the operation of the Payroll Protection Loans (PPP) of the Cares Act.

“The PPP was intended to assist the small businesses that form the backbone of our economy, and now Congress has provided more than $ 650 billion to do so. To ensure that these funds are spent in accordance with the intent of Congress and appropriately to address the impact of the COVID-19 pandemic on the economy, we ask that you open a broad investigation into the implementation of the program, “Warren and Velázquez indicated.

Democratic federal lawmakers sent a letter to Acting Treasury Inspector General Richard Delmar and SBA Inspector General Hannibal Ware.

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Velázquez is the president of the Small Business Committee of the United States House of Representatives.

Warren and Velázquez requested a review of the SBA and Treasury rules development process for companies obtaining PPP loans, to see if there are adequate rules to prevent misuse of funds, and if they have been the richest businesses, not family members or those with few employees, those who have managed to monopolize those subsidies.

They also want to know if companies with close ties to the Trump administration or political connections have more access to the PPP program.

For example, they indicated that JP Morgan “extended loans to virtually all of its commercial banking clients seeking financing through the Small Business Assistance Program, while the smallest clients were almost completely excluded.”

They also indicated that the company Continental Materials, owned by the family of the United States Ambassador to Belgium, Ronald Gidwitz, and with close ties to the Trump administration, obtained a $ 5.5 million loan under the program.

Warren and Velázquez noted that it is unclear whether the Treasury-designed guidelines on the PPP program will be sufficient to prevent abuse of the program.

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