Friday, January 15, 2021

SBA to release info on PPP, EIDL loans

Last week, the U.S. District Court for the District of Columbia issued its opinion in a case entitled, WP Company LLC d/b/a The Washington Post vs. the U.S. Small Business Administration, et al.

The case involves two actions brought under the Freedom of Information Act regarding disclosure of the names, addresses and precise loan amounts as requested by the plaintiffs.

On Nov. 5, 2020, the court granted the plaintiffs’ request. It ordered the Small Business Administration to release the names, addresses and precise loan amounts for borrowers who had obtained loans pursuant to the Paycheck Protection Act and the Economic Injury Disaster Loans program on Dec. 1.

The SBA filed a motion to stay the court’s order, which, pursuant to the Memorandum Opinion, was denied. It ordered the SBA to release the names, addresses and precise loan amounts for all individuals and entities that obtained PPP and EIDL COVID-related loans no later than Dec. 1, 2020.

We don’t know what form the disclosure will take, but it’s something likely not to escape notice by your PPP/EIDL customers. When that happens, our guess is some of your customers may not be happy about it and may think you or the bank are responsible for this directive which, of course, you are not.

We still don’t know if the SBA will file an appeal yet this evening. We wanted you to at least be aware that in case it doesn’t, and those names and amounts are made a public record Tuesday morning, you should know about it.

If you have questions or concerns about this latest development, please don’t hesitate to call Roger or Adrian at the Association.