Senators Joni Ernst of Iowa and Rand Paul of Kentucky have formally requested documentation from SBA Administrator Kelly Loeffler, seeking clarity on the allocation of funds from the Paycheck Protection Program (PPP), a component of the 2020 Coronavirus Aid, Relief, and Economic Security Act. This program was designed to provide forgivable loans to small businesses impacted by the economic fallout of the pandemic.
As reported by The Daily Signal, Senator Ernst emphasized the importance of ensuring that taxpayer dollars are not used to support abortion services, stating, "Not a single tax dollar should fund abortions." She further noted that the PPP was intended to assist Americans facing financial hardship during the pandemic, not to benefit "ineligible recipients fueling abortion-on-demand."
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Senator Paul, a medical doctor, echoed these sentiments, criticizing the Biden administration for allegedly obstructing investigations into the potential misuse of PPP loans by Planned Parenthood entities. He expressed confidence that the Trump administration would offer the transparency that the American public deserves.
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In May 2020, the SBA under the Trump administration had informed Planned Parenthood affiliates of their ineligibility for PPP funds, citing federal laws that prohibit the funding of abortion services and the substantial size of the Planned Parenthood Federation of America.
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The letter from the senators criticizes the SBA's lack of transparency during the Biden administration, with Ernst remarking, "The Biden administration stonewalled my oversight efforts at every turn and prevented the American people from learning how Planned Parenthood cashed in on COVID."
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The controversy stems from allegations that Planned Parenthood affiliates improperly applied for 38 PPP loans, amounting to over $80 million, as noted in a May 2020 SBA letter. Despite these concerns, the SBA under President Joe Biden approved loans totaling nearly $40 million to Planned Parenthood affiliates.
This decision came despite Biden's historical support for the Hyde Amendment, which prohibits federal funding for abortions, a stance he reversed during the 2020 Democratic primary.
The House Select Committee on the Coronavirus Pandemic has reported that the Paycheck Protection Program suffered significant losses due to fraud, estimating at least $64 billion in fraudulent claims.
