The SBA rewrote the PPP?

https://thehill.com/opinion/finance/492193-a-government-agency-cannot-change-the-terms-of-congresss-covid-19-relief-bill

This sounds like a “deep state” thing. But in this case it is Trump’s SBA changing the LAW Congress passed.

“Before its launch, the Small Business Administration (SBA), the government agency overseeing the PPP, issued a regulation detailing how it will administer the loans. … The regulation recognizes what Congress passed, stating that “the Act provides that borrowers are eligible for forgiveness in an amount equal to the sum of payroll costs and any payments of mortgage interest, rent, and utilities.” But in the next breath, the SBA ignored that language and changed the law because it “determined that the non-payroll portion of the forgivable loan amount should be limited to effectuate the core purpose of the statute.””

The opinion piece states that this is not something new, nor even a “Trump administration thing”. But it is disconcerting that an Executive Branch agency takes it upon itself to change a law they were supposed to execute. “The executive branch is empowered to execute those laws — but not to rewrite them.”

2 thoughts on “The SBA rewrote the PPP?

  1. Not to worry. IG’s are in place to protect the interest of the taxpayers.

    “Sorry, what did you say?”

    “He canned the IG’s or removed their powers?”

    Forget what I wrote.

    So go ahead, worry.

    Liked by 4 people

  2. Not having read the bill, I don’t know how much regulatory discretion was built into it, but in general I am concerned. I can also see the possibility that some companies might pay so much for interest and rent that the fund would be rapidly depleted, so the SBA may well have its heart in the right place, preserving the funds for payroll support, though its means might be questionable.

    Like

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