Declaration of Susan E. Streich, SBA (PX 2) — FTC v. Ponte Investments (D.R.I.)

Record facts

U.S. District Court, District of Rhode Island · No. 1:20-cv-00177-JJM-PAS · Doc. 5-3 · 2020-04-17 · Docket on CourtListener

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PX 2 
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DECLARATION OF SUSAN E. STREICH 
PURSUANT TO 28 U.S.C. § 1746 
 
I, Susan E. Streich, hereby state that I have personal knowledge of the facts as set forth below 
and am competent to testify about them. 
1. I am a citizen of the United States and am over eighteen 18 years of age.  I am Director 
of the Office of Credit Risk Management (OCRM) with the U.S. Small Business 
Administration (“SBA”). I have been in this position for 2 years and 4 months and am 
responsible for managing the portfolio performance of the SBA 7(a), 504 and 
Microlender Intermediary programs, monitoring credit risk and lender performance and 
compliance with SBA requirements.  Collectively, the SBA loan programs comprise a 
portfolio of over $126 billion and encompasses over 4,400 lending partners.  OCRM 
conducts lender oversight via Risk Based Reviews for Federally Regulated Institutions, 
and Safety and Soundness Examinations of SBA Supervised Lenders.  OCRM also has 
the authority to take supervision and enforcement actions against participating lenders 
when appropriate. 
2. On or around April 2, 2020, SBA was contacted by a consumer who had been solicited 
by “SBA Loan Program” to apply for small business loan assistance through its 
programs.  According to the consumer’s complaint, SBA Loan Program was 
misrepresenting itself to small businesses that it was capable of providing direct 
stimulus funding under the Coronavirus Aid, Relief, and Economic Security Act 
(“CARES Act”), including the Paycheck Protection Program (“PPP”). 
3. On April 3, a representative for Ponte advised SBA that SBA Loan Program held 1000 
applications for the PPP loan program.  
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4. On April 10, SBA discovered that the SBA Loan Program website represented that it 
was an approved SBA lender.  
5. I learned that SBA Loan Program was a d/b/a for Ponte Investments, LLC (“Ponte”), 
which is owned by John Ponte. 
6. On or about April 9, 2020, SBA received an application from Ponte Investments, LLC 
for approval as a non-bank lender under the PPP.  Neither Ponte Investments, LLC nor 
John Ponte had previously been authorized by SBA to make PPP loans.    
7. SBA has determined that, both prior to and after Ponte’s April 9 application, Ponte 
represented that it was an SBA-approved lender.  
8. On or about April 10, 2020, SBA sent Ponte a cease and desist letter, stating among 
other things that “SBA does not have any record” that Ponte “is a participating lender 
and SBA believes this assertion to be false.”  A true and correct copy is attached as 
Attachment A. 
9. SBA received a response to this cease and desist letter from Mr. Ponte on April 13, 
2020.  A true and correct copy of this response is attached as Attachment B.   
10. As of the date of this declaration, neither Ponte Investments, LLC nor John Ponte has 
been authorized by SBA to make PPP loans.   SBA has reason to believe that the small 
businesses that submitted applications for PPP loans to Ponte have not obtained PPP 
loans through SBA Loan Program. 
Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and 
correct. 
Executed in Washington DC on April 17, 2020. 
_Susan E. Streich__ 
Susan E. Streich 
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Attachment A 
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OFFICE OF GENERAL COUNSEL 
 
 
April 10, 2020 
 
Ponte Investments LLC 
d/b/a sbaloanprogram.com 
1300 Division Rd, Suite 305  
West Warwick RI 02893 
 
       
 
Re:  Website Advertisements for sbaloanprogram.com  
 
        CEASE AND DESIST NOTICE 
 
To Whom It May Concern: 
 
This letter is in reference to the loan services currently being advertised on Ponte Investments 
LLC website, www.sbaloanprogram.com.  The U.S. Small Business Administration (“SBA”) 
has reviewed this website and has determined that Ponte Investments LLC is advertising as an 
approved direct lender in SBA’s 7(a) PPP loan program.  SBA does not have any record that 
Ponte Investments LLC is a participating lender and SBA believes this assertion to be false.    
 
In view of the foregoing, SBA hereby demands that Ponte Investments LLC immediately 
CEASE AND DESIST from holding itself out to the public as an SBA approved lender on its 
company website and in all marketing materials.  Further, SBA demands that Ponte 
Investments LLC immediately inform all business concerns that have submitted applications to 
Ponte Investments LLC that it is not an approved SBA direct lender.   
 
Finally, SBA demands that Ponte Investments LLC inform SBA in writing within three days of 
its receipt of this notification that it will fully comply with the terms outlined in this demand 
letter. Because of the current national emergency, Ponte Investments LLC reply should be 
emailed to mary.cvengros@sba.gov.  
 
If Ponte Investments LLC fails to timely inform SBA of its intent to comply with the above 
directives or provide SBA with facts affirming that it is in fact an SBA approved lender, SBA 
will take appropriate legal action. 
 
If you have any questions regarding this notification, you may contact Mary Cvengros at (312) 
353-4663. 
 
 
 
 
 
 
 
Sincerely, 
 
 
 
 
 
 
 
 
                                                                        /s/ Eric S. Benderson 
 
 
 
 
 
 
Associate General Counsel for Litigation 
 
U.S. SMALL BUSINESS ADMINISTRATION 
 
WASHINGTON, DC 20416 
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Attachment B 
 
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