Federal Court Orders SBA to Release Information on All PPP Recipients

Cheryle Bernard Coronavirus Alerts, NPA News

November 17, 2020

A federal district court ordered the Small Business Administration (SBA) to release the names,
addresses, and loan amounts for all PPP and all special CARES-Act EIDL recipients by November
19, 2020. However, a temporary stay of this order has been issued in response to the SBA’s
request for a full stay.

Newspapers and watchdog organizations petitioned the court for release under the federal
Freedom of Information Act (FOIA). The SBA responded in July by releasing some information,
but withheld disclosure of the names, addresses, and loan amounts of PPP recipients whose
loans were $150,000 or less. The SBA claimed that two statutory FOIA exemptions protected
this information. The court disagreed.

The court’s 40-page order explains that concerns had arisen about the fairness of the manner
that the SBA administered the PPP and CARES Act special EIDL funding and about reports of
fraudulent PPP applications being investigated. These factors favored disclosure of this
information.

The NPA is following this case and will keep you informed of any developments or changes in
the final decision. If the court does not grant a full stay the SBA’s release of this PPP loan
information, the availability of this information may trigger media inquiries from local or even
national outlets. If you received a PPP loan you may be contacted for comments or even
requests for interviews.

In this event, we suggest that pawn store owners or managers be prepared to respond and turn
this into a positive by thanking Congress and the Administration for making the funding for the
PPP loans available to help small businesses keep their staff employed and remain open to
serve their local communities.

NPA’s Team GRC will continue monitoring the court and keep you advised.

 

This GRC Update is not intended and should not be construed as legal advice to NPA members.

Members should consult their own lawyers for legal advice.
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