Planned Parenthood illegally took $83 million in COVID stimulus: Senators

Summary

A news article reports that 25 Senate Republicans, including Minority Leader Mitch McConnell, are demanding an investigation into why the Small Business Administration continues to approve Paycheck Protection Program loans to Planned Parenthood affiliates. According to the article, the senators' letter to SBA Administrator Isabel Guzman says the affiliates have received $83 million and that the program's rules state they are ineligible. It states that the letter says SBA continued to provide PPP money after telling affiliates they were not eligible and demanding the money be returned, and that only seven of 38 affiliates complied. The senators describe the approvals as unconscionable.

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Planned Parenthood ‘illegally’ took $83 million in COVID
stimulus: Senators

WASHINGTON - Fed up with Planned Parenthood affiliates continuing to receive coronavirus stimulus money “illegally,” several
Senate Republicans — including Minority Leader Mitch McConnell — are demanding an investigation into why the Small
Business Administration continues to write checks to the outfit.

Ina letter to SBA Administrator Isabel Guzman, 25 GOP senators said that the affiliates have received $83 million and apparently
continue to get money through the Paycheck Protection Program when the rules state they are ineligible.

What’s more, it said that SBA is providing PPP money even after telling Planned Parenthood affiliates they were not eligible for the
money and demanded it be returned. Only seven of 38 affiliates have complied.

“Tt is unconscionable that SBA continues to approve PPP loans made to organizations which are clearly ineligible for funding,” the
letter said of the money going to the women’s health and abortion clinics. “This is unacceptable,” it added in calling for an
investigation into why the money continues to be provided.

The letter, shared with Secrets, is shown below. Among others that signed it are Indiana Sen. Mike Braun, South Dakota Sen. John
Thune and Wyoming Sen. John Barrasso.

Since the program began last year, GOP senators have been demanding that SBA follow the rules that prohibit big companies and
organizations from receiving the small business payroll loans, which are really grants that are not expected to be paid back.

When the PPP program was established, the rules prohibited organizations with more than 500 employees, including affiliates, from
receiving the money set aside for small shops. According to the senators, Planned Parenthood has 16,000 employees and assets of
nearly $2 billion.

The lawmakers said they are concerned that in the latest extension of the program, that Planned Parenthood affiliates are still being
given the money. They wrote, “We are concerned that this extension will give remaining Planned Parenthood affiliates time to
illegally obtain funds from the program as the SBA has yet to take action on this issue.”

Read the full letter:
Wnited States Senate

WASHINGTON, DC 20510

March 25, 2021

The Honorable Isabel Guzman
Administrator

United States Small Business Administration
409 3rd Street SW

Washington, DC 20416

Dear Administrator Guzman,

We write to request an investigation concerning how affiliates of the Planned Parenthood
Federation of America (“Planned Parenthood”), a national organization with central control over
its affiliates which has nearly $2 billion in assets, and over 16,000 employees nationwide, are
continually able to obtain loans through the Paycheck Protection Program (PPP) when Small
Business Administration (SBA) rules and guidance has made it clear that they are ineligible for
such funds.

Since the original authorization of the PPP, 38 Planned Parenthood affiliates have received over
$83 million in taxpayer funds meant for small business relief. According to the longstanding
SBA affiliation rules which state that entities are affiliated “when one controls or has the power
to control the other, or a third party or parties controls or has the power to control both,” Planned
Parenthood, which operates in governance and practice as an affiliated group, is ineligible for
these loans.

Following press reports in 2020 that Planned Parenthood affiliates had still applied for and
received PPP funds contrary to the letter of the law, SBA sent letters to the 38 affiliates who had
received funding, instructing those groups to return the funding. According to the most recently
available data, seven affiliates did so, but the remaining 3] affiliates kept the received funding
despite receiving notice that they had received such funds illegally. Of those 31, two affiliates
actually applied and received a second draw from the program for a combined $3.6 million when
additional funding was appropriated.

It is unconscionable that SBA continues to approve PPP loans made to organizations which are
clearly ineligible for funding. This is unacceptable, not only because SBA, like other agencies,
must be a faithful and responsible steward of taxpayer dollars but also because continuing to
make funds available for Planned Parenthood affiliates is in direct violation of the law.

We urge that the SBA promptly open an investigation into how these loans were made in clear
violation of the applicable affiliation rules and if Planned Parenthood, relevant lenders, or staff at
the SBA knowingly violated the law, and that appropriate legal action be taken if so.

On March 25, 2021, U.S. Congress took action to extend the PPP until June 30, 2021. We are
concered that this extension will give remaining Planned Parenthood affiliates time to illegally
obtain funds from the program as the SBA has yet to take action on this issue.

Information Washington Examiner — Paul Bedard a oe
https://www. washingtonexaminer.com/washington-secrets/planned-parenthood-illegally-took-83-million-in-covid-stimulus-senators

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