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Luetkemeyer, Foxx, Van Duyne, and Allen Issue Joint Statement on Unions Illegally Receiving PPP Funds

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WASHINGTON, D.C. - Today, Ranking Member on the House Committee on Small Business Blaine Luetkemeyer (R-MO), Ranking Member on the House Education and Labor Committee Virginia Foxx (R-NC), House Small Business Subcommittee on Oversight, Investigations, and Regulations Ranking Member Beth Van Duyne (R-TX), and House Education and Labor Subcommittee on Health, Employment, Labor, and Pensions Ranking Member Rick Allen (R-GA) issued the following joint statement on the discovery of unions illegally receiving Paycheck Protection Program (PPP) funds:


“It is concerning that PPP funds were distributed to entities other than small businesses and designated non-profit organizations. The illegal entry of at least 226 labor, teachers, and government unions into the Paycheck Protection Program demands an investigation. Ensuring American tax dollars are used responsibly and correctly is essential in our duty to the American people and our small businesses. We hope the SBA will be able to shed some light on this important issue.”


Read the full letter here.
Read key excerpts of the letter below:


“We have recently been made aware of a report from the Freedom Foundation highlighting that PPP loans were made to labor unions.[1] Using data obtained through the Freedom of Information Act, the Freedom Foundation determined that 226 labor, teachers, and government sector unions received $36.7 million in forgivable loans.[2] We understand these loans were made despite the CARES Act’s language specifically targeting PPP loans to small businesses and non-profit organizations—as defined under Section 501(c)(3) and 501(c)(19) of the Federal tax code, respectively.[3] Additionally, 501(c)(12) entities were made eligible for the PPP through administrative action on May 19, 2020.[4] PPP loan eligibility was not extended to unions—Section 501(c)(5) entities—until the law was amended nearly a year later.[5] This information suggests that 501(c)(5) entities entered the program illegally and put money in the hands of affiliates of large organizations—including the AFL-CIO and the International Brotherhood of Teamsters—which netted more than $3.8 million.[6]


“Given the wide utilization of the program, it is critical to understand if ineligible entities received assistance and how the SBA conducted PPP loan forgiveness reviews for entities classified under Section 501(c)(5) of the Federal tax code (hereinafter referred to as “501(c)(5)-classified entities”).”


Background:
Representative Blaine Luetkemeyer (R-MO) is the Ranking Member of the House Committee on Small Business.


Representative Virginia Foxx (R-NC) is the Ranking Member of the House Committee on Education and Labor.


Representative Beth Van Duyne (R-TX) is the Ranking Member of the House Small Business Subcommittee on Oversight, Investigations, and Regulations.


Representative Rick Allen (R-GA) is the Ranking Member of the House Education and Labor Subcommittee on Health, Employment, Labor, and Pensions
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  • Surreal ValeCity online media
  • October 19 2022 Edition
    • Passion Exhibit Gallery Arte Azulejo
    • Gov Ivey Improved Broadband Access
    • Release Alaska Vital Statistics
    • Gov Lamont Clean Energy Investment Plan
    • Gov Reynolds Appoints Eric Howe
    • Gov Reynolds Iowa Budget Surplus
    • Baker Polito 24 Million Skills Capitol Grants
    • Gov Whitmer Increasing Road Patrol Funding
    • Gov Whitmer Investments Jobs Saginaw
    • First Food Delivery Nevadans in Need
    • Gov Sisolak Statement Escaped Inmate
    • Statement Donald J Trump Sept 27
    • Luna Fest Womens Film Festival
  • Elections 2022
    • Kelly for Alaska >
      • Tshibaka Premiere Energy Summit on Facebook
      • Alaska Radio Station Rejects McConnell Attack
      • Tshibaka Endorsed by America's Candidate Fund
      • New Tshibaka TV Ad Highlights
      • Kelly Tshibaka Endorsed by Edgar Blatchford
      • Tshibaka Time For a Change Education
      • As Fauci Retires Remember Murkowski
      • Kelly Tshibaka Statement Alaska Primary
      • Kelly Tshibaka Closing Primary Argument
      • Confirmed Rank Choice Voting Scheme
      • New Tshibaka Ad Can't Trust
      • Tshibaka Earns A Rating
      • Buzz Kelly Suspends Campaign Endorses Tshibaka
      • Tshibaka Time for a Change Constitutional Rights
      • Murkowski Continues Charade Pressing Haaland
      • Kelly Tshibaka Statement Planned Trump Rally
      • Tshibaka Statement Supreme Court Ruling Abortion
      • Tshibaka Blasts Gun Control Deal
      • Murkowski Embraces Gun Control Package
      • Murkowski Erode 2nd Amendment Rights
      • Tshibaka Endorsed by Harold Hamm
      • Jimmy Carter Lisa Murkowski Create Obstacles
      • Tshibaka Murkowski Gross Disregard Workers
      • Kelly Tshibaka Leaked Draft Supreme Court
  • Supporting ALL Law Enforcement
  • Thanks to the sponsors
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  • Archive 2022
    • Arts
    • Dining Out
    • Editorials
    • Events
    • Festivals
  • Archives 2021
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  • A Valley and Beyond