WASHINGTON, D.C. - Today, the House Small Business Subcommittee on Oversight, Investigations, and Regulations held a hybrid hearing on “An Empirical Review of the Paycheck Protection Program.”

Subcommittee Ranking Member Beth Van Duyne’s opening statement as prepared for delivery:

Thank you, Mr. Chairman, for holding this critically important hearing and your continued partnership on providing proper oversight.

In order to respond to the crushing state and local shutdown orders, the federal government stepped in with multiple relief programs. The Paycheck Protection Program, also known as PPP, was front and center during this emergency period, ensuring relief was focused on retaining employees while requiring the dollars flow to American small businesses through private-sector lenders. 

As we approach the second anniversary of PPP's opening, Members of this Subcommittee and the full Committee are busy examining how this almost $800 billion program performed. This hearing is a continuation of that discussion.

As of March 6, 2022, 86 percent of all PPP recipients have requested PPP loan forgiveness. In response, the SBA has made PPP forgiveness payments of approximately $700 billion. These are extraordinary dollar amounts and show the program is winding down, but the work is not finished.

The SBA cannot wipe its hands of this program and must stay engaged with this committee as we continue our oversight responsibilities. This sentiment also needs to be emphasized to the Department of the Treasury, who played a significant role in PPP by onboarding numerous new lenders. As many committee members have pointed out, Treasury Secretary Yellen is required by law to testify before the full committee on the implementation of the COVID-19 programs, specifically the PPP. Unfortunately, 325 days past the date, the challenges small businesses face still haven't risen to the level of importance for the Secretary to appear. This cannot stand.

In the State of the Union, the President stated that "we're going after the criminals who stole billions in relief money meant for small businesses and millions of Americans." How can we believe that statement if appearing before our committee is too difficult of a step to take? Nevertheless, my colleagues are eager to go after wrongdoers and make necessary changes, and I hope the Treasury Secretary will testify on this matter soon.  

This Committee has a host of issues left to examine regarding PPP, including fraudulent behavior. Numerous articles and audits have highlighted trends connecting fraud to certain fintech lenders. It is crucial we understand these lenders' role within the program, how they interacted with small businesses, determined eligibility, and if they adequately protected American taxpayer dollars.

Fraud is unacceptable, and we must address illegal behavior and ensure we recover improper dollars efficiently. Additionally, we need to learn more about how the SBA conducted PPP loan reviews. For example, if ineligible businesses entered the PPP, I'm left to wonder how they were treated under the loan forgiveness process? We must find answers to these essential questions. 

Moreover, any PPP conversation should include the lenders on the ground delivering this program. That is why I'm looking forward to today's discussion with not only the Government Accountability Office, which has provided extensive oversight throughout, but also with a community bank lender who was on the frontline keeping businesses in his community alive.  

In Texas 24, our private lenders helped disburse over 40,000 loans worth well over $4 billion. In the countless roundtables I’ve held with small business owners from around North Texas, besides a tough labor market and skyrocketing energy prices, a common theme is how PPP was a lifesaver during the pandemic. And while America’s small businesses have been ready to grow their business without government handouts, our work in Congress to ensure every last relief dollar was appropriately spent must continue.

With that Mr. Chairman, I look forward to our continued work on this matter and want to thank you for holding this hearing. I yield back.

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