After learning that some small businesses received less than they asked for under the Paycheck Protection Program, three Democratic Senators want more scrutiny of the banks, the New York Times reported. In a letter to Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza on Wednesday, three members of the Senate Banking Committee asked for more oversight of banks making loans under the Paycheck Protection Program. The program is designed to provide forgivable loans that help small businesses pay their employees and some of their overhead during the coronavirus lockdowns. But some business owners are saying that they had not received as much money as they had asked for, and said they had been told that the decision was made by the banks — not the Small Business Administration, which is funding the program. “Whether inadvertent or intentional, this troubling report warrants a response from your agencies,” the senators, Sherrod Brown of Ohio, Robert Menendez of New Jersey and Tina Smith of Minnesota, wrote in the letter. Treasury rules say that for Paycheck Protection Program loans to be forgiven, businesses must spend the money in precise ways, including rehiring a certain portion of their employees. If the amount they receive isn’t enough to rehire enough employees, their loans cannot be forgiven. The senators asked Mnuchin and Ms. Carranza to offer those borrowers options for getting additional funds to cover the gap. They also asked whether the officials had a plan for identifying which borrowers had not gotten as much money as they needed and determining the reason for the discrepancy.
