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Miami, FL — U.S. Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, announced his Committee would conduct aggressive oversight of the Paycheck Protection Program (PPP), including whether companies made false certifications to the federal government to receive PPP loans.
“The Paycheck Protection Program was designed to help small businesses keep employees on payroll during incredibly difficult economic circumstances,” Chairman Rubio said. “More than one million small businesses have used the program exactly as intended, and by some estimates it has saved 30 million jobs. However, we also have multiple reports of companies abusing the program.
“Any business, regardless of size, must certify it has been harmed by the coronavirus crisis and that PPP is necessary to maintain operations,” Chairman Rubio continued. “This fall, the Senate Committee on Small Business and Entrepreneurship will conduct aggressive oversight into the use of the PPP. If companies are not forthcoming, the Committee will use its subpoena power to compel cooperation.
“America is in the midst of a growing economic crisis brought on by a deadly global pandemic,” Chairman Rubio concluded. “Now is not the time for our nation’s companies to profit at others’ expense. We are all in this together.”
The Paycheck Protection Program was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). Under the PPP’s “Borrower Requirements,” a business “shall make a good faith certification” that, among other things, “the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.”