Source: United States House of Representatives – Congressman Steve Cohen (TN-09)
November 20, 2020
In letter to Mnuchin, seeks additional action on Paycheck Protection Program loan forgiveness
MEMPHIS – Congressman Steve Cohen (TN-09) today wrote for a third time to Treasury Secretary Steven Mnuchin asking for clarification of the Treasury Department’s plan to forgive Paycheck Protection Program (PPP) loans despite clear evidence that some were obtained by fraud. In today’s letter, Congressman Cohen urged the Secretary to ensure necessary controls are in place to deliver maximum relief to PPP borrowers while maintaining the government’s ability to prosecute PPP fraud.
The letter reads in part:
“Since only approximately 1 percent of the 5.2 million PPP loans made have received loan forgiveness decisions, I urge you to immediately take more stringent actions to ensure that taxpayer dollars are adequately safeguarded. Specifically, I request that small-dollar PPP borrowers still be required to certify that loan proceeds were used for permissible uses and maintain relevant documentation in the event of a subsequent audit. While I am mindful that the loan forgiveness process should not and cannot be too burdensome for our small businesses, especially minority-owned small business, I also believe there are controls we can put in place to deliver maximum relief to PPP borrowers while maintaining the government’s ability to prosecute PPP fraud.”
See the entire letter here.
In his previous letters to the Treasury Secretary, Congressman Cohen asked Mnuchin to exercise careful scrutiny of PPP loans and to conduct a review coronavirus-related loans to businesses associated with President Trump in light of recent revelations that several businesses with ties to the president received millions of dollars in loans.
See his release containing the two previous letters here.