JUSTICE ACTION NETWORK APPLAUDS BIPARTISAN SENATE COALITION INTRODUCING “PAYCHECK PROTECTION PROGRAM SECOND CHANCE ACT”

SENATORS PORTMAN, CARDIN, LANKFORD AND BOOKER ANCHOR BILL TO REVERSE DESTRUCTIVE SBA REGULATION, ALLOW SECOND CHANCE SMALL BUSINESS OWNERS TO APPLY FOR COVID-19 EMERGENCY LOANS 

(WASHINGTON) – Today, a bipartisan coalition of Senators introduced legislation reversing the Small Business Administration’s controversial exclusion of people with criminal records or justice system involvement from COVID-19 emergency funds. SBA regulations denied emergency loans to any business with an owner holding a 20% stake or more who had a felony conviction within the last five years. The application for Paycheck Protection Program funds also included broad questions about pretrial diversion, probation, and parole that could lead to the exclusion of millions of Americans.  

The “Paycheck Protection Program Second Chance Act,” sponsored by Senators Rob Portman (R-OH), Ben Cardin (D-MD), James Lankford (R-OK), and Cory Booker (D-NJ), expands PPP access for people with criminal records or justice system involvement. Only those who are currently incarcerated or have been convicted of a felony of financial fraud or deception within the last five years will be excluded. 

 “When the Small Business Administration excluded business owners with records from accessing the Paycheck Protection Program, they harmed people who have done everything society has asked of them, and jeopardized public safety in the process,” said Holly Harris, Executive Director of Justice Action Network. “The small business owners they are excluding have paid their debt, turned away from crime, embraced the American dream, started their own business, and become contributing members of our communities. These individuals should be supported and celebrated, not punished. During this time of national unrest, it is encouraging to see leaders of opposite parties link arms and demand that emergency relief extend to Americans of all backgrounds, including those who have made mistakes and turned their lives around. We are grateful to Senators Portman, Cardin, Lankford, and Booker for working together to heal the American economy, and we urge Leader McConnell to move this bipartisan proposal forward as soon as possible.”

 The reversal of SBA’s exclusionary regulation is supported by a broad, bipartisan array of national and state-based organizations. Coalition letters are available HERE, HERE, and HERE.