The outcry over large companies receiving hundreds of millions of payroll protection program loans originally intended for small businesses has been sparked by reports based on public statements these companies are required to make because they sell shares on public stock exchanges.
But more than 99% of the businesses that get the loans are private companies and do not have to disclose that they are benefiting from the current $ 650 billion program that will write off the loans if the companies keep their employees for eight weeks.
Sen. Marco Rubio (R-Florida) said on Wednesday that the names of all entities receiving the loan would eventually be made public.
“It’s all going to be public one way or another,” Rubio said, adding that if the Small Business Administration doesn’t publish it, its small business subcommittee will demand it.
The wish comes as the Small Business Administration excluded large banks from the program for eight hours, starting at 4 p.m. Wednesday, “to ensure special access … to smaller lenders and their small business clients.”
Lenders, who started submitting applications Monday morning for the second round of PPP loans, complained of being excluded from the IT system.
But Rubio, speaking at a virtual town hall hosted by State Representative Shevrin Jones (D-West Park), said the slowing down of the process was intentional.
“What they decided to do was create a pacing system where they limited (access to) 350 requests per lender per hour,” he said.
Even with the pace, the program approved about $ 2 billion in loans per hour, prompting Rubio to warn, “I want to be frank with everyone: at some point in the next 3-4 days they’re going say we have reached “the loan. limit.
As of 1 p.m. Tuesday, Rubio said more than 475,000 loans had been approved for an average of about $ 111,000, indicating that recipients had an average payroll of $ 44,000 per month. This average loan amount is down from $ 206,000 for the $ 342 billion in loans approved before the first batch of money ran out.
Rubio noted that loans are not canceled unless recipients spend 75% on payroll.
“At the end of the day, it’s not about helping businesses per se,” he said. “And a lot of them probably shouldn’t have applied because they had cash reserves. But it’s about helping people earn $ 8, 9, 15, 20 an hour which work for them. “