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"Letter to SBA and Treasury Regarding Paycheck Protection Program Eligibility for Planned Parenthood Health Centers"

Summary

Letter dated May 28, 2020 from Members of Congress to SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin concerning Paycheck Protection Program loans to Planned Parenthood health centers. The letter states that the SBA reportedly sent letters to more than 30 health centers informing them that they were ineligible for PPP loans. It argues that local Planned Parenthood organizations operate as independent 501(c)(3) organizations and that those with fewer than 500 employees are not barred from the PPP under SBA affiliation and size rules. It urges the SBA to stop targeting the health centers and to administer the PPP uniformly. The signature block is led by the Chair of the House Small Business Committee, Rep. Carolyn B. Maloney, Rep. Diana DeGette and Rep. Barbara Lee, followed by a long list of other Members of Congress.

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Congress of the United States
Washington, AC 20515

May 28, 2020
The Honorable Jovita Carranza The Honorable Steven T. Mnuchin
Administrator Secretary
U.S. Small Business Administration U.S. Department of the Treasury
403 3 St SW 1500 Pennsylvania Ave NW
Washington, DC 20416 Washington, DC 20220

Dear Administrator Carranza and Secretary Mnuchin:

We write with serious concern regarding recent attempts by the Small Business Administration
(SBA) to target Planned Parenthood health centers that have participated in the Paycheck
Protection Program (PPP). The PPP was created to help all eligible recipients regardless of
ideology or politics. We are deeply troubled that SBA appears to be engaged in targeted,
ideologically based attacks against critical safety-net health care providers.

As the United States grapples with the novel coronavirus pandemic, we strongly urge SBA to cease
its ideologically motivated attacks against these safety-net health care providers and instead focus
on providing America’s small businesses and not-for-profit organizations with the critical support
they need during this crisis.

The PPP—which was established by the Coronavirus Aid, Relief, and Economic Security
(CARES) Act with broad, bipartisan support—is intended to provide cash flow assistance to
qualifying employers who maintain their payroll during the coronavirus pandemic.' Under the
CARES Act, both for-profit and 501(c)(3) not-for-profit organizations were deemed eligible for
PPP loans. During this unprecedented crisis, not-for-profit organizations have faced severe
economic challenges, at the same time, their role in providing critically-needed services—
including health care services—has become even more essential.

In an attempt to pressure Planned Parenthood health centers into returning their PPP funds, SBA
reportedly sent letters to more than 30 health centers informing them that they were ineligible for
loans.”

Contrary to the claims made in these letters—as well as those made in conservative media reports
and by Republican elected officials—local Planned Parenthood organizations operate as
independent 501(c)(3) organizations, and those that have fewer than 500 employees are not barred
from participating in PPP, consistent with SBA's rules governing affiliation status and size.*

' Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136.

2 Planned Parenthoods Received $80 Million in PPP Loans. Now, the SBA Wants It Back., CBS News (May 22,
2020) (online at www.cbsnews.com/news/planned-parenthood-paycheck-protection-program-loan-controversy/).
3 Planned Parenthood Federation of America, PPFA Denounces Political Attacks on Local Planned Parenthood
Health Centers (May 20, 2020) (online at www.plannedparenthood.org/about-us/newsroom/press-releases/ppfa-
denounces-political-attacks-on-local-planned-parenthood-health-centers); Department of the Treasury, Affiliation.

PRINTED ON RECYCLED PAPER
SBA’s letters—in conjunction with the Trump Administration’s continued attempts to undermine
reproductive health—raise serious questions about whether Planned Parenthood health centers are
being targeted among the 4.3 million loans issued under this program. That conservative media
outlets began reporting on these letters before they were even received by Planned Parenthood
recipients—and that there has been no similar reporting about other comparably organized not-
for-profit organizations that received PPP loans—suggests a coordinated effort to attack these
health centers on ideological grounds.’

It is critical that SBA administer the PPP in a uniform manner that does not seek to exclude any
entity or subset of entities on the basis of political ideology. We therefore strongly urge SBA to
stop targeting Planned Parenthood health care centers and instead dedicate critical resources to
ensuring that small businesses and not-for-profit organizations across the United States can access
the financial support they critically need during the coronavirus pandemic.

Thank you for your immediate attention to this matter.

Sincerely,
/
(ane 0. Urtre
Rep.'Nydia Velagquez Rep. Carolyn B. Maloney
Chair House Small Business Committee Chair House Oversight Committee

Rep. Diana DeGette
Chair Subcommittee Investigations, Co-Chair Congressional Pro-Choice
Oversight and Regulations Caucus

Ratan ee

Rep. Barbara Lee
Co-Chair Congressional Pro-Choice
Caucus

4 Planned Parenthood Affiliates Improperly Applied For and Received $80 Million in Coronavirus Stimulus Funds,
Feds Say, Fox News (May 19, 2020) (online at www. foxnews.com/politics/planned-parenthood-coronavirus-
stimulus-money-ppp-return).
Jan Schakowsky
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Debbie Wasserman Schultz
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Jamie Raskin
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Joe Neguse
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Eleanor Holmes Norton
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Lauren Underwood
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Nita M. Lowey
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Marcia L. Fudge
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Debbie Dingell
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Lucille Roybal-Allard
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1

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~ Henry C. “Hank” Johnson, Jr.

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