SBA to Release the Names of PPP Borrowers
The U.S. Small Business Administration (“SBA”) will soon be releasing the names of all recipients of Paycheck Protection Program ("PPP") loans in excess of $150,000. According to at least one news report, this could come as soon as Thursday, July 2, 2020.
Exact loan amounts will not be disclosed, but the SBA will signify the broad salary range of each identified recipient:
- $150,000 to $350,000
- $350,000 to $1,000,000
- $1,000,000 to $2,000,000
- $2,000,000 to $5,000,000
- $5,000,000 to $10,000,000
Recipients’ addresses, NAICS codes, business types, demographic data and jobs supported will also be disclosed for each recipient with a loan in excess of $150,000.
For loans of less than $150,000, individual recipients will not be identified.
Loan recipients are encouraged to prepare for any potential backlash that may result from the public disclosure of their PPP loans. In particular, companies that may potentially be subject to media scrutiny should begin to prepare a public relations response. Recipients should consider emphasizing the number of jobs saved and the amount of the loan proceeds that went towards payroll costs.
While there is no doubt that some PPP loan recipients will be subject to second-guessing over their decision to apply for and receive PPP loans, it is important to remember that recipients were required to certify as to the “necessity” of the loan proceeds based on the facts present at the time of the certification. The performance of the business after the proceeds were received should not factor into whether the recipient had a reasonable basis for making the certification at the time the application was submitted.