Planned Parenthood qualified for pandemic loans: Inspector General

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Family planning organizations were rightly able to collect business loans in the event of a pandemic, an inspector general concluded Monday in a new report that refutes claims by congressional Republicans.

Investigators looked specifically at Planned Parenthood of Illinois as an example and found that it had 341 employees, well below the 500-employee limit under the law governing the Paycheck Protection Program at Illinois. pandemic era.

The Small Business Administration’s inspector general also reviewed the chapter’s relationship with Planned Parenthood National and found no affiliations that would have changed the results.

“We have determined that the Planned Parenthood organization meets the eligibility requirements for PPP loans,” concluded Hannibal “Mike” Ware, the inspector general.

But chapters of other major nonprofits, such as Goodwill and the YMCA, “mistakenly” got pandemic loans because they were too large to qualify under the original rules, the report revealed. ‘investigation.

The Goodwill chapter, Goodwill of Southwestern Pennsylvania, finally became eligible after redefining employee size limits. He has raised over $6 million in now canceled loans.

But the YMCA of the Rockies, which got $3.5 million, had too many employees when it applied for a loan and when it applied for — and received — a pardon, the audit found.

In total, the investigation identified 179 Paycheck Protection Program loans to nonprofit groups that should have been flagged as potentially erroneous.

Nonprofits’ access to pandemic loans has been hotly debated in 2020, with Planned Parenthood taking fire from conservatives who opposed the move.

The Trump administration had at one point decided that due to the structure of the organization and the relationship between local affiliates and the national group, all employees should be counted together, placing chapters well beyond the PPP loan limit.

Indeed, the national Planned Parenthood group seemed to agree, warning that the March 2020 law that created the PPP appeared to be aimed at denying chapters of the organization any loans.

But local Planned Parenthood outfits still applied for — and got — loans.

Mr Ware said that after examining the structure he did not see any signs of national control over local organisations.

The PPP was part of Congress’ attempt to prop up the economy amid the pandemic’s early shutdowns.

Small businesses were allowed to apply for government-backed bank loans and then apply for forgiveness as long as they met the criteria and used the money for permitted purposes.

Banks have been asked to accept self-attestations from companies on things like the number of employees.

The 179 organizations flagged by the inspector general on Monday were too large to be eligible, Mr Ware said.

The YMCA chapter investigators examined had 745 employees.

The SBA, in a formal response to the report, said it would go back and review 27 of the loans Ware reported.

The agency specifically promised to review the YMCA’s $3.5 million loan, although it said the investigation would not be completed until January.

For more information, visit the Washington Times COVID-19 resource page.

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