Vaughn declaration (William Manger, SBA) — WP Co. v. SBA

Record facts

UNITED STATES DISTRICT COURT · No. 1:20-cv-01240-JEB · Doc. 14-1 · 2020-08-18 · Docket on CourtListener

Full text

1 
 
IN THE UNITED STATES DISTRICT COURT 
FOR THE DISTRICT OF COLUMBIA 
WP COMPANY LLC d/b/a THE 
WASHINGTON POST, BLOOMBERG 
L.P., DOW JONES & COMPANY, INC., 
PRO PUBLICA, INC., THE NEW YORK 
TIMES COMPANY, AMERICAN 
BROADCASTING COMPANIES, INC. 
d/b/a ABC NEWS, AMERICAN CITY 
BUSINESS JOURNALS, CABLE NEWS 
NETWORK, INC., NBCUNIVERSAL 
MEDIA, LLC d/b/a NBC NEWS, THE 
ASSOCIATED PRESS, THE CENTER FOR 
INVESTIGATIVE REPORTING 
d/b/a REVEAL, 
 
       Case No. 1:20-cv-01240 
       (JEB)
Plaintiffs,
v. 
  
 
U.S. SMALL BUSINESS 
ADMINISTRATION, 
Defendant.
DECLARATION OF WILLIAM MANGER 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 1 of 28

 
2 
 
I, William Manger, hereby declare and state the following, pursuant to the provisions of 28 
U.S.C. § 1746: 
1. At all times relevant to this lawsuit, I have served as the Chief of Staff in the Office of 
the Administrator and as the Associate Administrator for the Office of Capital Access at the U.S. 
Small Business Administration (“SBA”), located at 409 Third Street SW, Washington D.C. 20416.  
The statements contained in this declaration are based upon my personal knowledge, information 
provided to me in my official capacity, and conclusions and determinations reached and made in 
accordance therewith.   
2.  As the Chief of Staff, I am responsible for overseeing the daily operations of the 
Agency.  That responsibility includes, but is not limited to, overseeing the Payroll Protection 
Program (PPP) loan program, a new temporary loan program created by the CARES Act, and the 
Economic Injury Disaster Loan (EIDL) Program. 
3. As the Associate Administrator for the Office of Capital Access, I manage SBA’s 
portfolio of direct and guaranteed non-disaster loans, nine operation centers, and 560 employees.  
Because of the nature of my official duties, I am familiar with the procedures followed by the SBA 
in responding to all requests under the Freedom of Information Act (FOIA), 5 U.S.C. § 552, for 
information from its files regarding loans under the PPP and EIDL, including the SBA’s handling 
of Plaintiffs’ FOIA requests in these actions.  In accordance with Vaughn v. Rosen, 454 F. 2d 820 
(D.C. Cir. 1973), this declaration supports the SBA’s motions for summary judgement.  
Furthermore, this declaration provides the Court and Plaintiffs with the administrative history of 
the FOIA requests; describes the procedures used to search for, review, and process the responsive 
records; and provides the SBA’s justification for withholding records in part under FOIA 
Exemptions 4 and 6.  5 U.S.C. §§ 552(b)(4), (b)(6).        
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 2 of 28

 
3 
 
The CARES Act and SBA’s PPP and EIDL Loan Administration 
4. The SBA’s authority to issue non-disaster loans flows from section 7(a) of the Small 
Business Act, which is titled “Loans to small business concerns; allowable purposes; qualified 
business; restrictions and limitations.”  Pub. L. 85-563, § 7, 72 Stat. 384 (1958) (codified at 15 
U.S.C. § 636).  Under section 7(a), the SBA is “empowered,” subject to certain qualifications, “to 
make loans to any qualified small business concern,” which “may be made either directly or in 
cooperation with banks or other financial institutions through agreements to participate on an 
immediate or deferred (guaranteed) basis.”  15 U.S.C. § 636(a). 
5. SBA has authority to make direct disaster loans under Section 7(b) of the Small 
Business Act.  15 U.S.C. § 636(b).  SBA is authorized to make economic injury disaster loans if it 
“determines that the [small business] concern, the organization, or the cooperative has suffered 
substantial economic injury” as a result of a disaster.  15 U.S.C. § 636(b)(2).  SBA has authority 
to declare an economic injury disaster based on a certification from a state governor that “small 
businesses, private nonprofit organizations, or small agricultural cooperatives (1) have suffered 
economic injury as a result of such disaster, and (2) are in need of financial assistance which is not 
available on reasonable terms in the disaster stricken area.”  15 U.S.C. § 636(b)(2)(D).  The 
Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020, provided that 
“for purposes of Section 7(b)(2)(D) of the Small Business Act, coronavirus shall be deemed to be 
a disaster.”  Pub. L. 116-123, Title II (March 6, 2020).  By March 21, 2020, SBA had received 
economic injury disaster declaration requests from the governors of every state and territory and 
issued declarations in all states and territories.  See 85 FR 20015 (April 9, 2020). 
6. On March 13, 2020, President Trump declared the ongoing Coronavirus Disease 2019 
(COVID–19) pandemic of sufficient severity and magnitude to warrant an emergency declaration 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 3 of 28

 
4 
 
for all States, territories, and the District of Columbia.  With the COVID–19 emergency, many 
small businesses nationwide are experiencing economic hardship as a direct result of the Federal, 
State, tribal, and local public health measures that are being taken to minimize the public’s 
exposure to the virus.  These measures, some of which are government-mandated, are being 
implemented nationwide and include the closures of restaurants, bars, and gyms.  In addition, 
based on the advice of public health officials, other measures, such as keeping a safe distance from 
others or even stay-at-home orders, are being implemented, resulting in a dramatic decrease in 
economic activity as the public avoids malls, retail stores, and other businesses.  On March 27, 
2020, President Trump signed into law the CARES Act, passed by Congress to provide emergency 
economic assistance and other support to help individuals, families, businesses, and health care 
providers cope with the enormous economic and public health crises triggered by the pandemic.  
Pub. L. No. 116-136, 134 Stat. 281.
7. SBA received funding and authority through the CARES Act to modify existing loan 
programs and establish a new loan program to assist small businesses nationwide adversely 
impacted by the COVID–19 emergency.  Section 1102 of the CARES Act temporarily permits 
SBA to guarantee 100 percent of 7(a) loans under a new program titled the “Paycheck Protection 
Program.”  To further respond to the emergency, SBA also drew on its authorities under the pre-
existing Economic Injury Disaster Loan (EIDL) Program.  
8. The CARES Act initially appropriated $349 billion to the section 7(a) program to fund 
the PPP.  Participating lenders began accepting PPP loan applications on or about April 3, 2020. 
9. Loans guaranteed under the PPP differ in significant ways from regular loans made 
under SBA’s 7(a) program.  Among these differences, the PPP authorizes the SBA to make 
covered loans to various non-profit organizations, independent contractors, and self-employed 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 4 of 28

 
5 
 
individuals, in addition to sole proprietorships and other small business concerns.  In addition, PPP 
loan amounts are based specifically on the total compensation paid to the borrower’s employees, 
so the PPP loan amounts reflect a small business’s payroll and reflect a sole proprietor’s or 
independent contractor’s income.  
10. SBA also administers the EIDL and EIDL Advance Programs.  Pub. L. No. 116-136, 
134 Stat. 281; see also 13 C.F.R. §123.300 et seq.
11. SBA’s EIDL program offers long-term, low-interest financial assistance for eligible 
entities, including small business concerns, businesses with 500 or fewer employees (including 
sole proprietorships, independent contractors and self-employed persons), private non-profit 
organizations, agricultural enterprises and tribal small business concerns with less than 500 
employees, affected by COVID-19.   
12. EIDL loans may be used for working capital, notes payable, and accounts payable, in 
addition to expenses that result from the disaster’s impact.  An EIDL borrower can also have a 
PPP loan, but must use the loan proceeds from each for different purposes.  In addition, small 
businesses, non-profits and other eligible entities may request, as part of their loan application, an 
EIDL Advance, amounting to $1,000 for each employee up to $10,000.  The EIDL Advance does 
not have to be repaid even if the applicant is subsequently denied a loan and is designed to provide 
emergency economic relief to businesses that are experiencing a temporary loss of revenue. 
13. By April 15, 2020, SBA had processed more than 14 years’ worth of PPP loans in less 
than 14 days, and by August 8, 2020, it had processed 5,046,654 loans totaling $520,438,822,408 in 
approved dollars.  That unprecedented expansion of SBA’s funding required the full attention of the 
agency’s employees.
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 5 of 28

6 
14. In addition to processing an unprecedented number of PPP loans, SBA was also tasked with 
drafting and implementing an entirely new set of regulations to provide guidance to borrowers and 
lenders of the PPP as well as issuing procedural notices and new lender forms.  See Paycheck Protection 
Program Interim Final Rules at https://www.sba.gov/funding-programs/loans/coronavirus-relief-
options/paycheck-protection-program#section-header-9.
15. Congress intended in the CARES Act for SBA to provide relief to America’s small
businesses expeditiously to mitigate the current economic conditions arising from the COVID–19 
emergency.  In light of the economic crisis facing the nation at the time of the enactment of the CARES 
Act, including an unprecedented increase in unemployment nationwide and the shuttering of small 
businesses across the country, there was an urgent need to enable banks and other lenders to begin making 
PPP loans rapidly.  With millions of borrowers receiving hundreds of billions of dollars of support in a 
matter of weeks, it was not possible to adopt borrower-specific measures to protect confidential financial 
information.  SBA would not have had the operational capacity to review even a small fraction of the 
company-specific reasons borrowers might provide for why information about their PPP loans 
constituted sensitive, confidential information. 
Administrative History of Plaintiffs’ FOIA Requests 
16. Plaintiffs in Civil Action No. 20-cv-1240 are WP Company d/b/a The Washington
Post, Bloomberg, LP, Dow Jones Company, Inc., ProPublica, Inc., The New York Times 
Company, American Broadcasting Companies, Inc. d/b/a ABC News, American City Business 
Journals, Cable News Network, Inc., NBC Universal Media, LLC d/b/a NBC News, The 
Associated Press, The Center for Investigative Reporting d/b/a Reveal.  Plaintiff in Civil Action 
No. 20-cv-1614 is the Center for Public Integrity.
17. Plaintiffs made several requests in April and May 2020 under FOIA for information
on the loan recipients under PPP and EIDL. Plaintiffs submitted their FOIA requests separately 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 6 of 28

7 
and at various times.  Each request sought the same information for loan-level data regarding 
businesses that received loans under the PPP and EIDL, including, among other things, borrower 
name and address, amount of approved loan, race, ethnicity, gender of borrowers, and (for PPP 
only) lender name.  In particular:   
The Washington Post Requests 
18. On April 24, 2020, the Washington Post submitted a FOIA request for:
Data from the Paycheck Protection Program loan program, including names of 
applicants, dates of applications, and loan amounts approved from April 3, 2020 
until the completion of this loan program. The SBA’s website defines the following 
as information generally disclosed under FOIA and we request this data for all 
recipients of Paycheck Protection Act loans:  (1) Names and commercial street and 
email addresses of recipients of approved loans; (2) Date of loan approval and date 
of disbursement (if available);  (3) Names of officers, directors, stockholders or 
partners of recipient firms; (4) Kinds and amounts of loans, loan terms, interest 
rates, maturity dates, general purpose; (5) Identity and location of participating 
banks.
Data from the Economic Injury Disaster loan program (EIDL), including names of 
applicants, dates of applications, and loan amounts approved from March 12, 2020 
until the completion of this loan program. We request that the data include: (1) 
Names and commercial street and email addresses of recipients of approved loans; 
(2) Date of loan approval and date of disbursement (if available); (3) Names of
officers, directors, stockholders or partners of recipient firms; (4) Kinds and
amounts of loans, loan terms, interest rates, maturity dates, general purpose; (5)
Identity and location of participating banks
19. SBA assigned tracking number SBA-2020-000946 to the PPP portion of the request
and assigned tracking number SBA-2020-000947 to the EIDL portion of the request.  The 
Washington Post requested expedited processing for the requests. 
20. SBA responded on June 12, 2020 directing the Washington Post to the statistical
information found at: https://www.sba.gov/about-sba/open-government/foia#section-header-32 
and provided requester with appeal rights within 90 days. 
21. SBA responded again on June 15, 2020, directing the Washington Post to the same
statistical information and providing requester with appeal rights. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 7 of 28

8 
22. SBA did not respond to the request for expedited processing.
Bloomberg Requests
23. On April 8, 2020, Bloomberg News submitted a FOIA request for:
24. SBA assigned tracking number SBA-2020-000555 to the PPP portion of the request
and assigned tracking number SBA-2020-000557 to the EIDL portion of the request.  Bloomberg 
requested expedited processing for the requests. 
25. SBA responded to 000555 on April 20, 2020 and to 000557 on April 21, 2020,
directing Bloomberg to the statistical information posted on its website and providing requester 
with appeal rights.  SBA did not respond to the request for expedited processing. 
26. On April 15, 2020, Bloomberg submitted another request for the same information,
except that the dates covered loans made between 4/9/2020 and 4/15/2020.  SBA assigned FOIA 
tracking numbers SBA-2020-000620 and SBA2020-000622. Expedited processing was requested. 
27. SBA responded to SBA-2020-000620 on April 23, 2020 directing Bloomberg to the
statistical information posted on its website and providing requester with appeal rights.  It also 
denied as moot the request for expedited processing because the response was sent within the 
expedited processing time frame of ten days. 
28. SBA responded to SBA-2020-000622 on April 21, 2020 directing Bloomberg to the
statistical information posted on its website and providing requester with appeal rights.  It also 
granted the request for expedited processing. 
29. On April 23, 2020, Bloomberg submitted another request for the same information
except that the dates covered loans made between 4/16/2020 and 4/22/2020.  SBA assigned FOIA 
tracking numbers SBA-2020-000910 and SBA-2020-000911. Expedited processing was 
requested.
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 8 of 28

9 
30. SBA responded to SBA-2020-000910 on May 4, 2020 directing Bloomberg to the
statistical information posted on its website and providing requester with appeal rights.  It also 
denied as moot the request for expedited processing because the response was sent within the 
expedited processing time frame of ten days. 
31. SBA responded to SBA-20202-000911 on May 14, 2020 directing Bloomberg to the
statistical information posted on its website and providing requester with appeal rights.  It granted 
the request for expedited processing. 
32. On April 29, 2020, Bloomberg submitted another request for the same information
except that the dates covered loans made between 4/23/2020 and 4/29/2020.  SBA assigned FOIA 
tracking numbers SBA-2020-001018 and SBA2020-001019. Expedited processing was requested. 
33.
SBA responded to SBA-2020-001018 on May 6, 2020 directing Bloomberg to the
statistical information posted on its website and providing requester with appeal rights. It also 
denied as moot the request for expedited processing because the response was sent within the 
expedited processing time frame of ten days. 
34. SBA responded to SBA-2020-001019 on June 18, directing Bloomberg to the
statistical information posted on its website and providing requester with appeal rights.  It granted 
the request for expedited processing. 
Dow Jones Requests 
35. On April 3, 2020, Down Jones submitted a FOIA request for:
A summary database of information for all approved loans under the Paycheck 
Protection Program of the 2020 CARES Act from the time the program began 
accepting applications through the end of business on April 13, 2020. Please 
include all data fields the Small Business Administration tracks for each loan that 
it determines is information generally disclosed under FOIA, including but not 
limited to: 1) names, commercial street addresses, and e-mail addresses of 
recipients of approved loans, 2) names of officers, directors, stockholders or 
partners of recipient firms, 3) kinds and amounts of loans, loan terms, interest rates, 
maturity dates, general purpose, etc., 4) business type 5) bank name and bank 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 9 of 28

10 
commercial street address, 6) approval date, 7) disbursement date, 8) NAICS 
description, 9) franchise name and franchise code, if applicable
36. SBA assigned this FOIA request tracking number SBA-2020-000580.  Expedited
processing was requested. 
37. SBA responded on April 20, 2020 directing Dow Jones to the statistical information
posted on its website and providing requester with appeal rights. It also denied as moot the request 
for expedited processing because the response was sent within the expedited processing time frame 
of ten days. 
38. On May 1, 2020, Dow Jones submitted the same FOIA request, which was assigned
tracking number 2020-001060. Expedited processing was requested. 
39. SBA responded on May 11, 2020 directing Dow Jones to the statistical information
posted on its website and providing requester with appeal rights.  It also denied as moot the request 
for expedited processing because the response was sent within the expedited processing time frame 
of ten days. 
40. On May 4, 2020, Down Jones submitted the same FOIA request, which was assigned
tracking number 2020-001088. Expedited processing was requested. 
41. SBA responded on June 17, 2020 directing Dow Jones to the statistical information
posted on its website and providing requester with appeal rights.  It denied the request for expedited 
processing.
Propublica Requests 
42. On April 23, 2020, Propublica submitted a FOIA request for:
Loan level information about all loans made under the Paycheck Protection 
Program (PPP). I also request the same information for Emergency EIDL Grants. 
Specifically, for both these programs, I request the same 34 fields the SBA provides 
through its “SBA 7(a) & 504 loan data reports” on its FOIA website. See: 
https://www.sba.gov/about-sba/open-government/foia#section-header-32 
and 
http://imedia.sba.gov/vd/general/foia/7a_504_FOIA%20Data%20Dictionary.xlsx.
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 10 of 28

11 
However, in addition to those fields already provided, I also request information on 
the amount of forgiveness allowed for each loan. This is a special feature of the 
PPP loans under Section 1106 of the CARES Act. 
43. SBA assigned this FOIA request tracking number SBA-2020-000914. Expedited
processing was requested. 
44. SBA responded on May 4, 2020 directing Propublica to the statistical information
posted on its website and providing requester with appeal rights.  It also denied as moot the request 
for expedited processing because the response was sent within the expedited processing time frame 
of ten days. 
45. On April 30, 2020, Propublica submitted another FOIA request for “loan level
information about companies that received subsidies for SBA 7(a) loans under Section 1112 of the 
CARES Act, ‘Subsidy for Certain Loan Payments.’ The section enables the SBA to pay the 
principal, interest, and fees that are owed on specified loans for six months” and “the beginning 
date of the 6-month period that the SBA paid the loan payments, the end date, and the amount paid 
by the SBA under Section 1112.” 
46. SBA assigned this FOIA request tracking number SBA-2020-001043.  Expedited
processing was requested. 
47. SBA denied the request for expedited processing on July 16 as moot.
The New York Times Request 
48. On April 27, 2020, the New York Times submitted a FOIA request for:
A summary database of information for all approved loans under the Paycheck 
Protection Program of the 2020 CARES Act from the time the program began 
accepting applications through the end of business on April 13, 2020. Please 
include all data fields the Small Business Administration tracks for each loan that 
it determines is information generally disclosed under FOIA, including but not 
limited to: 1) names, commercial stress addresses, and e-mail address of recipients 
of approved loans, 2) names of officers, directors, stockholders or partners of 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 11 of 28

12 
recipient firms, 3) kinds and amounts of loans, loan terms, internet rates, maturity 
dates, general purpose, etc., 4) business type, 5) bank name and bank commercial 
street address, 6) approval date, 7) disbursement date, 8) NAICS description, 9) 
franchise name and franchise code, if applicable. 
49. SBA assigned this request FOIA tracking number SBA-2020-000982. The New York
Times requested expedited processing for this FOIA request. 
50. SBA responded on June 8, 2020 directing the New York Times to the statistical
information posted on its website and providing requester with appeal rights.  SBA denied the 
request for expedited processing. 
The ACBJ Requests 
51. On April 16, the Portland Business Journal submitted a FOIA request for:
1.
Paycheck Protection Program – All public data on every loan made through
the program, including, but not limited to, the name and location of the borrower
and her/his company, the bank that approved the loan, the amount of the loan, and
any other public data, including race/ethnicity/gender of the borrower, if that
information is gathered.
2.
Coronavirus/COVID-19 Economic Injury Disaster Loans - All public data
on every loan made through the program, including, but not limited to, the name
and location of the borrower and her/his company, the bank that approved the loan,
the amount of the loan, and any other public data, including race/ethnicity/gender
of the borrower, if that information is gathered.
52. SBA assigned this FOIA request tracking numbers SBA-2020-000628 and SBA-
2020-000630.
53. SBA responded on April 22, 2020 directing Portland Business Journal to the statistical
information found at: https://www.sba.gov/about-sba/open-government/foia#section-header-32 
and provided requester with appeal rights within 90 days. 
54. On April 27, 2020, Portland Business Journal filed an appeal of SBA’s response to
SBA-2020-000630 to SBA’s Office of Hearings and Appeals.  OHA has not issued a decision 
pending resolution of the current litigation.
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 12 of 28

13 
55. SBA responded to the other part of the request on May 12, 2020, directing the Portland
Business Journal to the same statistical information and providing requester with appeal rights. 
ABC News Request 
56. On April 13, 2020, ABC News submitted a FOIA request for:
Access to Small Business Administration figures describing how much of the 
Paycheck Protection Program (PPP) funds that have been approved for small 
business owners have actually been disbursed to those business owners. 
Specifically, I would like a breakdown of how much money was disbursed to 
business owners each day, beginning with the program's inception on April 3rd (the 
date on which business owners could first apply for the PPP funds). SBA provides 
reporters with a figure almost daily for how much PPP money has been "approved" 
for small business owners but has yet to answer any questions on how much 
business owners have actually received. 
57. SBA assigned this FOIA request tracking number SBA-2020-000586.  ABC News
requested expedited processing. 
58. SBA responded on May 2, 2020 directing the ABC News to the statistical information
posted on its website and providing requester with appeal rights.  It denied the request for expedited 
processing.
CNN Request 
59. On April 16, 2020, CNN submitted a FOIA request for:
Disaggregated data for all Covid-19-related Economic Injury Disaster Loans 
applications authorized by the Coronavirus Aid, Relief, and Economic Security Act 
("CARE Act") and received by the Small Business Administration. This data 
should include all fields that contain non-exempt information, including but not 
limited to the following types of information: Unique identifiers/primary keys; 
Application number; Application date; Borrower name; Borrower's city; 
Borrower's county; Borrower's ZIP code; Borrower's sate; Borrower's EIN; Loan 
amount; Nonprofit status; Application status; Status date; Collateral pledged; and 
Purpose of loan. 
60. SBA assigned this FOIA request tracking number SBA-2020-000626.  CNN
requested expedited processing. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 13 of 28

14 
61. On April 22, 2020, SBA responded to the CNN request directing them to the statistical
information posted on SBA’s website and providing requester with appeal rights.  It also granted 
the request for expedited processing. 
62. On April 28, 2020, CNN appealed the FOIA response to SBA’s Office of Hearings
and Appeals.  No decision has been made on the appeal pending resolution of the current litigation. 
Associated Press Requests 
63. On April 13, 2020, the Associated Press submitted a FOIA request for:
The database that SBA maintains for all loans approved and declined under the 
Paycheck Protection Program from the start of the program to the date of this 
request's filing.  SBA publicly releases data under two programs (7a and 504) also 
administered by the same agency office. For the purposes of this request for 
Paycheck Protection Program data, I request the same fields of information that 
SBA releases for 7a and 504. 
64. SBA assigned this FOIA request tracking number SBA-2020-000594.  The AP
requested expedited processing. 
65. On April 20, 2020, SBA responded to the AP request directing them to the statistical
information posted on SBA’s website and providing requester with appeal rights.  It also denied 
as moot the request for expedited processing because the response was sent within the expedited 
processing time frame of ten days. 
66. On April 22, 2020, the AP submitted another FOIA request seeking:
The name of each entity approved for a Paycheck Protection Program loan (aka 
borrower); the entity's city; the entity's state; the entity's NAICS subsector 
description or code for the entity (borrower); the approved dollars for the entity's 
loan; the name of the lending institution (lender) on the loan; and the date of the 
loan's approval. 
67. SBA assigned this FOIA request tracking number SBA-2020-000882.  The AP
requested expedited processing. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 14 of 28

15 
68. On June 5, 2020, SBA responded to the AP request directing them to the statistical
information posted on SBA’s website and providing requester with appeal rights.  It also denied 
the request for expedited processing. 
NBC News Requests 
69. On April 17, 2020, NBC News submitted a FOIA request for:
Paycheck Protection Program (PPP) Loan Data Reports/Files, including a “loan 
level” list of all loans approved as part of the PPP from the start of the PPP program 
and through the exhaustion of the first phase of funding ($349,000,000,000) on 
4/16/20.  I am requesting PPP Loan Data Reports/Files which include “loan-
specific” data, including the names and addresses of all business entity or individual 
loan borrowers/recipients and other related and available “loan-specific” data. 
70. SBA assigned this FOIA request tracking number SBA-2020-000658.  NBC
requested expedited processing. 
71. On May 2, 2020, SBA responded to NBC directing them to the statistical information
posted on SBA’s website and providing requester with appeal rights.  It denied the request for 
expedited processing. 
72. On April 17, 2020, NBC News submitted another FOIA request for:
Economic Injury Disaster Loan Program (EIDL) Loan Data Reports/Files, 
including a “loan level” list of all loans approved as part of the EIDL program from 
January 1, 2020 and through the exhaustion of the first phase of 
coronavirus/COVID-19-related funding on or around 04/16/20.  I am requesting 
EIDL Loan Data Reports/Files which include “loan-specific” data, including the 
names and addresses of all business entity or individual loan borrowers/recipients 
and other related and available “loan-specific” data.  If a subset of EIDL Loan Data 
Reports/Files relating to loans provided in response to coronavirus/COVID-19-
related economic injury exists or is distinguishable with identifying data within the 
broader EIDL data, please provide the subset or the identifying data. 
73. SBA assigned this FOIA request tracking number SBA-2020-000660.  NBC
requested expedited processing. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 15 of 28

16 
74. On April 22, 2020, SBA responded to NBC directing them to the statistical
information posted on SBA’s website and providing requester with appeal rights.  It granted the 
request for expedited processing. 
75. On April 29, 2020, NBC submitted another FOIA request seeking: “bank level” data
for the Paycheck Protection Program (PPP) including total amounts and number of PPP loans 
received by small businesses in each Congressional district for all loans approved as part of the 
PPP from the start of the PPP and through the most recent date for which this data set is available.” 
76. SBA assigned this FOIA request tracking number SBA-2020-001029. NBC requested
expedited processing. 
77. On May 6, 2020, SBA responded to NBC directing them to the statistical information
posted on SBA’s website and providing the requester with appeal rights.  It also denied as moot 
the request for expedited processing because the response was sent within the expedited processing 
time frame of ten days. 
Center for Investigative Reporting (d/b/a Reveal) Requests 
78. On April 21, 2020, the Center for Investigative Reporting submitted a FOIA request
for: 
Spreadsheets (.csv, excel, etc.) listing each individual loan granted through 
each Small Business Administration’s lending programs responding to the 
COVID-19 pandemic. 
-
A spreadsheet showing each individual loan granted under the Paycheck
Protection Program (PPP), from the creation of the program to the date of
fulfillment. I am requesting all information publicly releasable under to law,
including but not limited to the fields typically disclosed for every loan for the
SBA’s 7a loan program, including:
ƒ
Names and commercial street address, including state and zip code, and
email addresses of recipients of approved loans
ƒ
The race of the borrower
ƒ
The gender of the borrower
ƒ
The name of the participating bank
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 16 of 28

17 
ƒ
Names of officers, directors, stockholders or partners of recipient firms.
ƒ
The NAICS code of the business
ƒ
Amounts of loans, loan terms, interest rates, maturity dates.
-
A spreadsheet showing each individual loan granted under the Economic Injury
Disaster Loan program from March 1, 2020 to the date of fulfillment, to the
level of detail described above for the PPP program.
-
A spreadsheet showing each individual loan granted under the SBA Bridge
Loan program from March 1, 2020 to the date of fulfillment, to the level of
detail described above for the PPP program.
-
A spreadsheet showing each individual action under the SBA Debt Relief
program from March 1, 2020 to the date of fulfillment, to the level of detail
described above for the PPP program.
79. SBA assigned the FOIA request two tracking numbers:  SBA-2020-000828 and SBA-
2020-000830.  The Center for Investigative Reporting requested expedited processing of these 
requests. 
80. SBA responded on April 27, 2020 directing the requester to the statistical information
found at: https://www.sba.gov/about-sba/open-government/foia#section-header-32 and providing 
requester with appeal rights within 90 days.  It also granted the request for expedited processing. 
81. SBA responded again on June 10, 2020, directing the requester to the same statistical
information and providing requester with appeal rights.  It denied the request for expedited 
processing.
Center for Public Integrity Request 
82. On April 22, 2020, the Center for Public Integrity submitted a FOIA request for:
(1) All records regarding recipients of the Paycheck Protection Program, including
the name and address of the borrower, amount of approved loan, name of the
third-party lender, date of approved loan.
(2) All records regarding recipients of the Economic Injury Disaster Loan (EIDL)-
COVID-19 related assistance program (including EIDL Advances), including
name and address of the borrower, amount of approved loan, name of the third-
party lender, date of approved loan.
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 17 of 28

18 
(3) All records reflecting any communication between Administrator Jovita
Carranza and her staff concerning the Paycheck Protection Program and the
EIDL assistance program, including but not limited to letters, emails,
memoranda, reports, appointment calendars, and telephone call logs, and dated
between March 1, 2020 and the date you process this request;
(4) All records reflecting any communication between Administrator Jovita
Carranza, her staff, and members of Congress and their respective staff
concerning the Paycheck Protection Program and the EIDL assistance program,
including but not limited to letters, emails, memoranda, reports, appointment
calendars, and telephone call logs, and dated between March 1, 2020 and the
date you process this request;
(5) All records reflecting any communication between Administrator Jovita
Carranza, her staff, and third-party lenders concerning the Paycheck Protection
Program and the EIDL assistance program, including but not limited to letters,
emails, memoranda, reports, appointment calendars, and telephone call logs,
and dated between March 1, 2020 and the date you process this request;
(6) All records reflecting any communication between Administrator Jovita
Carranza, her staff, and borrowers under the CARES Act’s paycheck protection
program and the EIDL program concerning the Paycheck Protection Program
and the EIDL assistance program, including but not limited to letters, emails,
memoranda, reports, appointment calendars, and telephone call logs, and dated
between March 1, 2020 and the date you process this request;
(7) A database or other similar electronic copy of requested records.
83. SBA assigned FOIA tracking numbers SBA-2020-000848 to item 1; SBA-2020-
000849 to item number 2; and SBA-2020-000850 to the remainder of the request.  The Center for 
Public Integrity requested expedited processing. 
84. SBA responded on May 14, 2020, directing the requester to the statistical information
posted on SBA’s website at https://www.sba.gov/about-sba/open-government/foia#section-
header-32 and providing requester with appeal rights within 90 days.  It also denied the request for 
expedited processing. 
85. SBA responded again on June 15, 2020 directing the requester to the same statistical
information.  It also granted the request for expedited processing. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 18 of 28

19 
SBA’s Release Of Information About PPP And EIDL Loans 
86. SBA issued letters in response to each of the requests, stating that it was providing
statistical information on the PPP and EIDL “in an effort to keep the public informed of the 
assistance and actions” it was taking at that time.  The letters directed the requesters to a link that 
was posted on the SBA website, which provided statistics on the number and total amount of loans 
issued on a weekly basis under the PPP and EIDL.
87. That 
website, 
found 
at 
https://www.sba.gov/about-sba/open-
government/foia#section-header-32, stated:  “SBA is providing statistical information on the 
Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) in an effort to 
keep the public informed of the assistance and actions both it and the thousands of lenders across the 
country are taking at this difficult time.  At this time, the agency is focusing its efforts on assisting small 
businesses during this unprecedented disruption to the economy due to the coronavirus (COVID-19) 
outbreak.  The agency recognizes the need to balance the interests of transparency with the privacy and 
confidentiality issues release of loan information raises.  In the near future, we will be able to turn our 
efforts to providing loan-specific data to the public, but hope that all understand the need for the Agency 
to focus its efforts on fulfilling the urgent needs of small businesses.”
88.
On July 6, 2020, SBA released detailed information on each of the 4.9 million PPP
loans that had been made up to that point.  See Exhibit 3 (“Press Release”).  The loan-level data 
included the following fields: city, state, ZIP code, NAICS code;1 business type; race/ethnicity; 
gender; veteran status; nonprofit status; jobs reported as retained; date approved; lender; and 
1 The North American Industry Classification System (NAICS) code is a self-assigned code 
that best fits a business’s primary industry.  For example, barber shops are assigned NAICS code 
812111, while beauty salons are assigned NAICS code 812112, and nail salons are assigned 
NAICS code 812113. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 19 of 28

20 
congressional district.  For loans of $150,000 or more, it also included business names and street 
addresses, and loan amounts expressed in ranges (not precise values) as follows: $150,000 to 
$350,000; $350,000 to $1 million; $1 million to $2 million; $2 million to $5 million; $5 million to 
$10 million.  For loans of less than $150,000, the loan-level data also included the precise value 
of the PPP loan, but not the business name or street address. 
89. The Press Release explained:
Today’s release includes loan-level data, including business names, addresses, 
NAICS codes, zip codes, business type, demographic data, non-profit information, 
name of lender, jobs supported, and loan amount ranges as follows: 
•
$150,000-350,000
•
$350,000-1 million
•
$1-2 million
•
$2-5 million
•
$5-10 million
These categories account for nearly 75 percent of the loan dollars approved. For all 
loans below $150,000, SBA is releasing all of the above information except for 
business names and addresses. 
The data release also includes overall statistics regarding dollars lent per state, loan 
amounts, top lenders, and distribution by industry. The loans have reached diverse 
communities proportionally, across all income levels and demographics. 
In addition, the data provides information regarding the sizes of participating 
lenders and participation by community development financial institutions, 
minority depository institutions, Farm Credit System institutions, fintechs and other 
nonbanks, and other types of lenders. It further contains data showing the reach of 
the program in underserved communities, rural communities, historically 
underutilized business zones (HUBZones), and participation by religious, 
grantmaking, civil, professional, and other similar organizations. 
90. On July 13, 2020, SBA made a determination on the release of PPP individual
borrower information, and issued letters to each Plaintiff (except the Center for Public Integrity, 
which received its letter some weeks later).  The letters directed Plaintiffs to SBA’s website at 
www.sba.gov/ppp.  SBA explained in the letters that portions of the PPP borrower data were being 
withheld pursuant to FOIA Exemptions 4 and 6.  5 U.S.C. §§ 552(b)(4) and 552(b)(6). 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 20 of 28

21 
Specifically, SBA withheld the names and addresses of all borrowers of PPP loans made below 
$150,000.  SBA also withheld the precise values of all PPP loans worth $150,000 or more. 
91. On July 20, 2020, SBA made a final determination of the release of EIDL borrower
information and again issued letters to all Plaintiffs (again, except the Center for Public Integrity, 
which received its letter some weeks later).  The letters directed Plaintiffs to SBA’s website at 
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-
disaster-loans#section-header-5, and informed Plaintiffs that SBA was releasing the loan data for 
all EIDL loans, except that the names and street addresses of sole proprietorships and independent 
contractors were being withheld pursuant to FOIA Exemption 6.  5 U.S.C. §552(b)(6). 
92. SBA has no responsive records with regard to PPP loans that were approved but
quickly repaid and then cancelled.  SBA is notified of a loan cancellation in one of two 
ways.  Either the lender cancels the loan via E-TRAN, or the lender reports the loan cancellation 
on Form 1502.  In either case, lenders are not asked for the reason for, or circumstances of, the 
cancellation, and neither E-TRAN nor Form 1502 provides a mechanism for reporting the reason 
for, or circumstances of, the cancellation.  Moreover, because PPP loans are made by lenders on a 
delegated basis and SBA does not interact with borrowers, SBA does not receive information 
concerning loan cancellations from borrowers.  Thus, if a loan was made, entered into E-TRAN, 
disbursed, quickly repaid, and then cancelled due to the repayment, while the lender would notify 
SBA of the cancellation, SBA would have no information—from the lender or the borrower—
indicating that the repayment prompted the cancellation.   
93. Similarly, SBA has no responsive records with regard to PPP loans that were approved
but not borrowed.  If a loan has been reported to SBA through E-TRAN and subsequently is 
cancelled, the lender will accomplish the cancellation through E-TRAN, which provides no 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 21 of 28

22 
mechanism for reporting the reason for, or circumstances of, the cancellation.  If, on the other 
hand, a lender cancels a loan before the loan has been reported to SBA through E-TRAN, SBA 
will not receive any information about the loan or its cancellation, much less the reason for, or 
circumstances of, the cancellation.  And because PPP loans are made by lenders on a delegated 
basis and SBA does not interact with prospective borrowers, SBA does not receive information 
concerning loan cancellations from prospective borrowers.  Thus, if a loan was approved but not 
borrowed and thus cancelled, while the lender under some circumstances would notify SBA of the 
cancellation, SBA would have no information—from the lender or the prospective borrower—
indicating that a prospective borrower’s decision not to borrow prompted the cancellation.   
Withholdings Under FOIA Exemption 4 
94. FOIA Exemption 4 protects against the disclosure of “trade secrets and commercial
or financial information [that are] obtained from a person and [are] privileged or confidential.”  5 
U.S.C. § 552(b)(4). 
95. SBA considers payroll information submitted by businesses that apply for public
assistance to be confidential commercial or financial information and has not customarily 
disclosed this data to the public in any way.  SBA’s Standard Operating Procedure (“SOP”)
regarding Disclosure describes information generally exempt from disclosure and specifically
includes payroll information of businesses. See SBA SOP 40 04 3; Appendix C (May 12, 2018),
attached as Exhibit 4. Previous versions of this SOP contain similar descriptions. See SOP 40 03
3; Appendix 3 (August 4, 2004), attached as Exhibit 5.
96. The maximum amount of a PPP loan is calculated from the borrowing business’s
average monthly payroll.  The maximum loan amount is generally 2.5 times the average monthly 
payroll for the 12 months preceding the date the loan is made, up to $10 million. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 22 of 28

23 
97. The methodology to calculate the maximum amount an applicant can borrow through
the PPP is established by the CARES Act and explained in Interim Final Rule, Business Loan 
Program Temporary Changes; Paycheck Protection Program, 85 Fed. Reg. 20,811 (Apr. 15, 2020). 
Compensation paid to an employee in excess of an annual salary of $100,000, or any amounts paid 
to an independent contractor or sole proprietor in excess of $100,000 per year, are not counted in 
the calculation of average monthly payroll. 
98. Because the CARES Act establishes a clear mathematical relationship between a
business’s maximum PPP loan amount and its average monthly payroll, knowing a business’s PPP 
loan amount would allow any interested party to calculate the business’s average monthly payroll, 
other than the amount of any salaries over $100,000—for any business that borrowed the full 
amount for which it was eligible.  Nationwide, many businesses are unlikely to pay any salaries in 
excess of $100,000. 
99. For self-employed individuals and independent contractors, any interested party could
similarly use the PPP loan amount to calculate the individual’s average monthly income.   
100. Because Exemption 4 protects a business’s payroll information, which can be
deduced from the business’s PPP loan amount with reasonable confidence, Exemption 4 also 
protects (a) the identity of the borrower of any PPP loan, where the precise amount of the loan is 
disclosed, and (b) the precise amount of any PPP loan, where the borrower’s identity is disclosed. 
101. For PPP loans of $150,000 or more, SBA disclosed the names and street addresses
of the borrowers but withheld the precise amount of their loans—instead providing the loan 
amounts in five ranges, as follows: $150,000 to $350,000; $350,000 to $1 million; $1 million to 
$2 million; $2 million to $5 million; $5 million to $10 million.  SBA determined that this provided 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 23 of 28

24 
the maximum transparency possible while still preserving the borrower’s confidential commercial 
and financial information.  
102. For PPP loans of less than $150,000, SBA disclosed the precise amount of the loans
and other information about the loans, but withheld the names and street addresses of the 
borrowers.  In each case, the withheld information was protected by Exemption 4.  SBA 
determined that this separate procedure was appropriate for the smallest PPP loans because a 
significant percentage of these borrowers are sole proprietors, independent contractors, or other 
individually owned or closely held entities for whom the disclosure of the PPP loan would reveal 
private financial information protected by Exemption 6.  
103. For PPP loans below $150,000, Exemption 4 authorizes the withholding of the
identities of borrowers even where those borrower identities could be released separately from the 
detailed loan data that has already been published.  The detailed geographic information already 
released for each loan (city, state, and ZIP code), plus the information about the type of business 
(NAICS code) would make it possible in many cases to match a list of PPP borrowers with the 
loan information already released, thereby reconstructing the complete loan information for those 
PPP loans and allowing an interested party to calculate those businesses’ average monthly payrolls 
with reasonable confidence. 
104. For PPP loans of $150,000 or more, Exemption 4 warrants the withholding of the
precise loan amounts even if the borrowers’ identities were not explicitly linked to that figure.  If 
the precise loan amounts were released along with other detailed information about the loans, it 
would be possible in many cases for an interested party to match that data with the detailed loan 
information linked to borrower identities in the current releases, thereby reconstructing the 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 24 of 28

25 
complete loan information for PPP loans and allowing the interested party to calculate those 
businesses’ average monthly payrolls with reasonable confidence.   
105. SBA’s Exemption 4 withholding of payroll information and loan amount
information from which payroll information can be discerned properly protects the interests of the 
more than 5 million PPP loan borrowers who are not parties to this litigation and who accordingly 
cannot defend their own interests.  A business’s payroll information, including its aggregate 
average monthly payroll, is generally considered to be confidential and sensitive information.  This 
information could be used by a business’s competitors to gain strategic insights into the size of the 
business and how much it pays its employees.  Competitors could also use this information 
regarding a business’s employee compensation to more effectively lure away those employees by 
offering higher compensation.  The information could be used by suppliers or other counterparties 
to assess the company’s profitability, which could affect commercial negotiations.  These harms 
could result in borrowers being less likely to take loans from the SBA in the future, which would 
be contrary to the purposes of the CARES Act and SBA’s mission of providing financial assistance 
to small businesses.  Disclosure of commercial information traditionally kept confidential by PPP 
borrowers, including payroll information, would further undermine the statutory purposes of the 
CARES Act by threatening further economic injury to small businesses when they are already 
being harmed as a result of the pandemic, as explained above.     
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 25 of 28

 
26 
 
Withholdings Under FOIA Exemption 6 
106. FOIA Exemption 6 provides that an agency may withhold “personnel and medical 
files and similar files the disclosure of which would constitute a clearly unwarranted invasion of 
personal privacy.”  5 U.S.C. § 552(b)(6).  Exemption 6 applies to financial information in business 
records when the business is individually owned or closely held, and the records would necessarily 
reveal at least a portion of the owner’s personal finances. 
107. To obtain a PPP loan, the borrower must certify “that the uncertainty of current 
economic conditions makes necessary the loan request to support . . . ongoing operations,” and 
must “acknowledg[e] that [PPP loan] funds will be used to retain workers and maintain payroll or 
make mortgage payments, lease payments, and utility payments.”  15 U.S.C. § 636(a)(36)(G)(i). 
108. The certifications required by the CARES Act—that the PPP loan requested is 
“necessary . . . to support  . . . ongoing operations” given “the uncertainty of current economic 
conditions” and that the funds loaned will be used for payroll, mortgage payments, lease payments, 
and utility payments—reveal a portion of the owner’s financial situation for businesses that are 
individually owned or closely held (including independent contractors, self-employed individuals, 
and sole proprietorships).  For independent contractors and the self-employed, the amount of the 
PPP loan also reveals the individual borrower’s salary with reasonable confidence.  For such 
businesses, therefore, Exemption 6 applies to the identity of the borrowers.  Revealing the 
existence of a PPP loan for businesses that are individually owned or closely held would reveal 
that the owner’s financial situation was sufficiently uncertain as to make the PPP loan necessary, 
and would effectively reveal salary information for independent contractors and the self-employed.  
It would also reveal to creditors and the general public that the owner had received PPP funds. 
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 26 of 28

 
27 
 
109. The SBA has received FOIA requests from landlords seeking to know whether their 
tenants received PPP funds. 
110. For PPP loans below $150,000, Exemption 6 exempts from disclosure the names and 
street addresses of borrowers that are individually owned or closely held businesses.
111. The SBA has determined from its experience with the small business community 
that a significant proportion of the small businesses with PPP loans below $150,000—which 
generally have annual payrolls below $720,000—are individually owned or closely held 
businesses.  But SBA records do not allow it to determine precisely which borrowers these are.  
Although the SBA’s electronic files contain a field for “business type,” which includes “sole 
proprietorship” and several forms of corporate ownership, that field does not identify which of the 
companies are individually owned or closely held, and which are not.  The SBA has therefore 
withheld the names and addresses of all PPP borrowers with loans below $150,000. 
112. The SBA has also withheld the names and addresses of independent contractors and 
sole proprietorships receiving EIDL loans, because the disclosure of this financial information 
would infringe on the privacy of the individual business owners. 
113. Where SBA withheld information under Exemption 6 in response to Plaintiffs’ FOIA 
requests, SBA determined the individuals’ privacy interests outweighed any public interest in 
disclosure.  Although the public has a general interest in knowing who has received public funds 
through the PPP loan program, that interest does not outweigh the privacy interest in the personal 
finances of individuals, including the owners of individually owned or closely held businesses.
Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 27 of 28

Case 1:20-cv-01240-JEB   Document 14-1   Filed 08/18/20   Page 28 of 28

File and source

File

gov.uscourts.dcd.217945.14.1.pdf

Size

235,703 bytes

SHA-256

a08a115dbeac294e9e034470ac6f5fee8a453d14def85a83ea152b3ac6fc570a

Our copy

gov.uscourts.dcd.217945.14.1.pdf

Original

storage.courtlistener.com