Share this on FacebookDecember 14th, 2020 | by NEWCA
The Small Business Administration (SBA) has mandated that businesses that received Paycheck Protection Program (PPP) loans of $2 million or more complete a loan necessity questionnaire that Associated General Contractors of America (AGC) is objecting to.
According to the story, AGC’s complaint contends “that the process that produced the form, and the form itself, violate the Paperwork Reduction Act and the Administrative Procedures Act, and that the federal agencies failed to meet the minimum standards for due process. The association is requesting the court to declare that the questionnaire is arbitrary and capricious, and to declare that the SBA cannot lawfully use the information that the form generates to find a company ineligible for a PPP loan or deny a company’s application for forgiveness of its loan.”
AGC further claims that the agencies (SBA and OMB) involved disregarded the legally mandated process for developing the questionnaire.
“Resorting to a secret form that disregards congressional intent and retroactively changes the criteria for a loan is not due diligence; it is unlawful and needs to stop before employers are irrevocably harmed,” Stephen E. Sandherr, AGC CEO said.
Sandherr continued, “The administration has every right, and obligation, to ensure businesses were eligible to apply for and receive the relief loans. But they do not have the right to use a secretly crafted form to gather unprecedented amounts of proprietary information that has little or nothing to do with the economic uncertainty that led businesses to apply for the loans in the first place.”
Read the rest of the story here.