Congress to ‘name and shame’ big companies that took stimulus funds meant for small-businesses: report

On Friday, Politico reported that the new House committee tasked with investigating coronavirus issues intends to "name and shame" major corporations that took loans from the Paycheck Protection Program (PPP), the stimulus program intended for small businesses.

"The 12-member committee, which Republicans reluctantly joined Thursday after musing about a boycott, has identified five large public companies that neverthelessapplied for and accepted small-business loans meant to aid those struggling to survive amid the pandemic," reported Kyle Cheney. "And the lawmakers are asking them to return the funds by next week or face a long list of document demands."

The companies named in the warning are EVO Transportation & Energy Services, Gulf Island Fabrication, MiMedx Group, Quantum Corporation, and Universal Stainless & Alloy Products.

“Since your company is a public entity with a substantial investor base and access to the capital markets, we ask that you return these funds immediately,” said the letter issued to the companies. “Returning these funds will allow truly small businesses — which do not have access to alternative sources of capital — to obtain the emergency loans they need to avoid layoffs, stay in business, and weather the economic disruption caused by the coronavirus crisis.”

"It's unclear whether the action had bipartisan support, but the panel's announcement leans heavily on recent statements that Republicans made expressing concerns about large companies accessing small business loans," said the report. "For example, House GOP leader Kevin McCarthy (R-Calif.) recently said he and Treasury Secretary Steven Mnuchin agreed that 'we will go after those big companies that cheat the system.'"