The Trump Administration Waived Ethics Reviews done by the Small Business Administration (SBA) when Federal and Congressional Family Businesses applied for Paycheck Protection Program (PPP) Loans, created by the March Relief Legislation known as the CARES Act.
The Trump Administration Issued a Rule, April 13th, that Waived Requirements for Additional Reviews when Lawmakers and Federal Employees Applied for Small Business Funds for Companies in which they or a Family Member in their Household have an Ownership Interest of 10% or more.
Without the Rule Change, those Loans would have to be Approved by a SBA Body called the Standards of Conduct Committee.
Policy Experts and Government Watchdogs said the Blanket Waiver Allowed Officials to Benefit Themselves. Josh Gotbaum, a Brookings Institution Scholar who has worked in Economic Policy under Democratic and Republican Administrations said that he was “appalled” by the Waiver. “The idea that the Small Business Administration can, without any review or publicity, secretly let all of its employees arrange loans for their family members or associates is outrageous,” Gotbaum said.
The CARES Act had a Conflict-of-Interest Provision to Prevent Trump, his Family, and Other Officials with Major Holdings to seek SBA Funding from a Program for Large Businesses. That Provision did Not Extend to the PPP Loans.
I think it just points to a Pattern of People in Positions of Power creating Loopholes for Themselves so they can have First Access to Funds that are meant for Real Small Businesses in Underserved Communities, That Money should be Clawed Back, so it can be Redistributed to those who need it.
The Blanket Waiver was Issued because the it was considered the PPP to be like Other Disaster Aid, which does Not Require Approval from the Standards of Conduct Committee.
It is Uncertain whether the Loans must be Disclosed on the Financial Disclosure for this year that will be filed in 2021.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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