Government and Politics
December 1, 2022
Congresswoman Tenney Leads Oversight Letter Demanding Information About PPP Loans Forgiven for Planned Parenthood
Washington, DC – Congresswoman Claudia Tenney (NY-22) recently led a letter to Hannibal “Mike” Ware, Inspector General of the U.S. Small Business Administration, demanding information about his recent decision not to qualify Planned Parenthood Federation of America (PPFA) member organizations as affiliates for purposes of the Paycheck Protection Program (PPP).
The letter was also signed by 49 other House Republicans, including House Pro-Life Caucus Chair Chris Smith (NJ-04), House Republican Conference Chairwoman Elise Stefanik (NY-21), House Small Business Committee Ranking Member Blaine Luetkemeyer (MO-03), House Judiciary Committee Ranking Member Jim Jordan (OH-04), and Republican Study Committee Chairman Jim Banks (IN-03).
The CARES Act established the PPP to help small businesses keep employees on their payrolls and their doors open through the darkest days of the pandemic. As part of the program, SBA was prohibited from issuing and forgiving loans to entities with more than 500 employees across their affiliates, excluding only hotels and restaurants. However, despite these affiliation rules, SBA has forgiven 38 individual loans totaling roughly $67 million in taxpayer dollars to affiliates of Planned Parenthood Federation of America (PPFA), which well exceeds the 500-employee threshold for PPP eligibility.
On multiple occasions, Congresswoman Tenney has questioned Inspector General Ware, as well as Small Business Administration Administrator Isabella Casillas Guzman, about the loans but was stonewalled. However, In a report released on September 26, 2022, the Inspector General concluded that PPFA member organizations did not qualify as affiliates, which would make them eligible for loan forgiveness.
In the letter, Congresswoman Tenney asked for clarification regarding the Inspector General’s determination that PPFA member organizations did not qualify as affiliates. She also outlined the Trump Administration’s reasons for considering the PPFA member organizations affiliates, including because they are required to be certified by the corporate board, are governed by corporate bylaws and are subjected to affiliation mandates.
In part, the lawmakers wrote, “We look forward to your explanation of how these methods of PPFA control over its affiliates do not disqualify PPFA affiliates from the PPP. Through incorrectly awarding loans to Planned Parenthood affiliates, the SBA used up limited funds that could have gone to the many truly independent small businesses, which did not have their applications approved before the program concluded.”
“Planned Parenthood affiliates abide by corporate guidelines, follow affiliation mandates, and must be certified before becoming an affiliate. Clearly, then, they are an integral part of the Planned Parenthood Federation of America and do not meet the size restrictions for the Paycheck Protection Program, which was intended to keep smaller businesses and organizations afloat during the darkest days of the pandemic, not create a slush fund for our nation’s largest and most politically connected abortion provider,” said Congresswoman Tenney. “Republicans in Congress are committed to government accountability, and I will continue fighting to ensure strong oversight over how taxpayer dollars are spent.”
“The funneling of $67 million in taxpayer funds to Planned Parenthood affiliates through the Paycheck Protection Program is an outright and egregious violation of the law,” said Congressman Smith. “The Paycheck Protection Program was intended to help small businesses struggling from COVID-19 restrictions—not enlarge the pockets of big abortion corporation Planned Parenthood, which has killed over 9 million innocent children since 1973 and reported more than $1.4 billion in affiliate revenue in a single year during the pandemic. The Biden Administration must answer for this clear disregard for the law and be held accountable for this misuse of American taxpayer dollars.”
The letter is also signed by Representatives Robert Aderholt (AL-04), Jodey Arrington (TX-19), Lauren Boebert (CO-03), Ken Buck (CO-04), Larry Bucschon (IN-08), Tim Burchett (TN-02), Kat Cammack (FL-03), Ben Cline (VA-06), Eric Crawford (AR-01), Byron Donalds (FL-19), Jeff Duncan (SC-03), Neal Dunn (FL-02), Jake Ellzey (TX-06), Pat Fallon (TX-04), Randy Feenstra (IA-04), Chuck Fleischmann (TN-03), Scott Franklin (FL-15), Russ Fulcher (IA-01), Louie Gohmert (TX-01), Morgan Griffith (VA-09), Glenn Grothman (WI-06), Michael Guest (MS-03), Andy Harris (MD-01), Ronny Jackson (TX-13), Fred Keller (PA-12), David Kustoff (TN-08), Doug Lamborn (CO-05), Debbie Lesko (AZ-08) Brian Mast (FL-18), Dan Meuser (PA-09), Mary Miller (IL-15), Alex Mooney (WV-02), Barry Moore (AL-02), Gregory Murphy (NC-03), Ralph Norman (SC-05), Burgess Owens (UT-04), Lloyd Smucker (PA-11), Gregory Steube (FL-17), Glenn Thompson (PA-15), Jefferson Van Drew (NJ-02), Beth Van Duyne (TX-24), Randy Weber (TX-14), Daniel Webster (FL-11), and Brad Wenstrup (OH-02).
The letter is supported by SBA Pro-Life America and Heritage Action.
The full text of the letter is available here.