Attorneys general in D.C., Maryland and Virginia, and across the nation, want Congress to do more for small businesses, formally urging federal leaders to improve the Paycheck Protection Program responsible for helping businesses survive the pandemic.
In a statement, Maryland Attorney General Brian Frosh echoed the content of a letter to Congressional leaders — signed by 23 other attorneys general, including D.C. and Virginia — stating his concern for small businesses that were “shut out because funds were drained by large corporations.”
The coalition of attorneys general is urging for fair access to funding and asking that the Small Business Administration provide lenders specific guidance they can look to so that funds are distributed without bias or preference.
The coalition also urged Congress to consider a portion of future funding go exclusively to minority-owned small businesses and be distributed across metropolitan areas. It is also asking Congress to allow small banks and credit unions to be fairly represented as lending sources in the program.
The attorneys general also asked that the SBA disclose more granular data, which includes the percentage of loans in various size categories; the number of loans processed by each lender; and the geographic distribution of all loans by metropolitan statistical area, borrower demographics and comprehensive data on the businesses that receive funding.
They say such disclosure will discourage larger companies with access to other funding sources from seeking loans.
Frosh and his colleagues also asked for increased flexibility for businesses working within tight payroll time frames and with differing demands, as well as technical support for those shops that need it.
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