US lenders, businesses brace for disclosure on small business pandemic aid

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Americans will soon get a first full look at which businesses received US$515 billion of taxpayer funds when the government, after initial ...

Americans will soon get a first full look at which businesses received US$515 billion of taxpayer funds when the government, after initial resistance by President Donald Trump's administration, releases borrower data for one of its highest- profile pandemic aid efforts.

The colossal data set for the Paycheck Protection Program, to be released by the Treasury Department and Small Business Administration in the coming days, will provide transparency for a first-come-first-served program that from the outset was plagued by technology, paperwork and fairness issues.That could make life uncomfortable for borrowers that broke the spirit or letter of the rules, and for banks that shoveled the money out the door.

The Treasury and SBA said they will release a swath of information, including the names, addresses, loan amount ranges and jobs supported for businesses that received US$150,000 or more. That should account for roughly 75per cent of the dollars granted, but only 15per cent of the 4.7 million loans.Treasury Secretary Steven Mnuchin initially refused to release the data, saying it included proprietary business information.

In the scramble to distribute funds, the program was beset by technology glitches, documentation snags and revelations that some banks prioritized their most profitable clients. As a result, more affluent companies got funds, while less well-heeled borrowers missed out.To date, the SBA has released broad distribution figures for states, industries and the largest lenders.

 

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