The Honorable Steven T. Mnuchin, Secretary, Department of the Treasury (April 29, 2020)

Summary

A letter dated April 29, 2020 to the Honorable Steven T. Mnuchin, Secretary of the Department of the Treasury, and the Honorable Jovita Carranza, Administrator of the Small Business Administration, from members of the Senate Committee on Small Business and Entrepreneurship. The letter states that the CARES Act did not establish separate authorization caps for the PPP and the 7(a) program, which it says effectively voids the 7(a) program's FY 2020 $30 billion authorization cap until July 1, 2020. The letter urges an immediate administrative fix to reserve part of the authorized amount for 7(a). The signature block names Marco Rubio, Chairman, and Benjamin L. Cardin, Ranking Member.

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Issuer: Congressional materials
Document type: 2020 04 29 Rubio Cardin Lead To Sba Treasury Rubio Cardin Lead Bipartisan Letter To Treasu
Date: 2020-04-29
Case: 2020 04 29 Rubio Cardin Lead To Sba Treasury Rubio Cardin Lead Bipartisan Letter To Treasury Sba On

Cite this document

“The Honorable Steven T. Mnuchin, Secretary, Department of the Treasury (April 29, 2020).” Dated 2020-04-29. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-04-29-rubio-cardin-lead-to-sba-treasury-rubio-cardin-lead-bipartisan-letter-to-treasury-sba-on/, SHA-256 a9138c1315ed9bdc932f9fdd56520ff70b0d1aee801c44d57cf92bcfc2519973.

Full text

April 29, 2020

The Honorable Steven T. Mnuchin
Secretary
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

The Honorable Jovita Carranza
Administrator
U.S. Small Business Administration
409 3rd Street, SW
Washington, D.C. 20416

Dear Secretary Mnuchin and Administrator Carranza:

The recently signed Paycheck Protection Program and Health Care Enhancement Act
(H.R. 266) allowed for the assistance provided through the Paycheck Protection Program (PPP)
to resume and continue saving millions of jobs throughout our country. Now, more than ever,
America’s 30 million small businesses and the over 60 million individuals they employ, need
access to the PPP. They also need access to the SBA’s existing core lending programs, such as
the regular 7(a) Loan Guaranty program, to stay afloat through this unprecedented crisis.

The 7(a) program provides flexible capital to businesses that cannot obtain credit
elsewhere, serving as a lifeline for many small businesses before this crisis, and fulfilling a vital
role in this economic emergency. The PPP stands on the foundation of the 7(a) program, which
has allowed PPP to become operational quickly. Unfortunately, the CARES Act did not establish
separate authorization caps for PPP and the 7(a) program. The 7(a) program was able to continue
to operate after the PPP program expended its appropriated funds because the programs did not
reach the statutory lending authority. However, in the most recent bill passed to fund the PPP,
the 7(a) program would be unable to continue operating since separate authorization caps were
not established and the amount appropriated in H.R. 266 provides funding to commit the entire
authorized amount to PPP loans, leaving no lending authority for 7(a). This lack of separate
authorization caps, first in CARES, and carried through in H.R. 266, effectively voids the 7(a)
loan program’s FY 2020 $30 billion authorization cap until July 1, 2020.

The high demand for PPP loans will lead to a swift expenditure of the new funds, given
the severity of the crisis and need for small business relief. We urge the agencies to provide an
immediate administrative fix to reserve part of the authorized amount for the 7(a) program. This
will allow small businesses to access the capital they critically need for both SBA programs.

We thank you for your continued service on behalf of America’s small businesses. We
look forward to our continued partnership to help small businesses survive this economic
hardship.
Sincerely,

___________________________ ____________________________
Marco Rubio Benjamin L. Cardin
Chairman Ranking Member
Senate Committee on Small Business Senate Committee on Small Business
and Entrepreneurship and Entrepreneurship

__________________________ ____________________________
Jim Risch Christopher A. Coons
Member Member
Senate Committee on Small Business Senate Committee on Small Business
and Entrepreneurship and Entrepreneurship

__________________________ ____________________________
Marsha Blackburn Ed Markey
U.S. Senator Member
Senate Committee on Small Business
and Entrepreneurship

__________________________ ____________________________
Lamar Alexander Tammy Duckworth
U.S. Senator Member
Senate Committee on Small Business
and Entrepreneurship

__________________________ ____________________________
John Boozman Jacky Rosen
U.S. Senator Member
Senate Committee on Small Business
and Entrepreneurship
__________________________ ____________________________
Michael B. Enzi Jeanne Shaheen
U.S. Senator Member
Senate Committee on Small Business
and Entrepreneurship

__________________________
Mitt Romney Mazie K. Hirono
Member Member
Senate Committee on Small Business Senate Committee on Small Business
and Entrepreneurship and Entrepreneurship

__________________________ ____________________________
Todd Young Cory A. Booker
Member Member
Senate Committee on Small Business Senate Committee on Small Business
and Entrepreneurship and Entrepreneurship

__________________________ ____________________________
Joni K. Ernst Maria Cantwell
Member Member
Senate Committee on Small Business Senate Committee on Small Business
and Entrepreneurship and Entrepreneurship

__________________________ ____________________________
Kelly Loeffler Deb Fischer
U.S. Senator U.S. Senator

__________________________ ____________________________
Jim Inhofe M. Michael Rounds
Member U.S. Senator
Senate Committee on Small Business
and Entrepreneurship

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