In a letter to Planned Parenthood of Delaware dated Tuesday and obtained by CNN, SBA wrote that because Planned Parenthood of Delaware “is a local affiliate of the Planned Parenthood Federation of America … we have concluded beforehand, therefore, that PPD does not qualify for a Salary Protection Loan Program under affiliated rules and applicable standard measures, consistent with the intent of Congress, and the loan you receive must be returned. “
The letter notes that the $ 496,225 loan submitted and received by a Delaware affiliate “is one of 38 loans that have been implemented by local PPFA affiliates through the Paycheck Protection Program. In total, local PPFA affiliates have applied for more than $ 80 million in Paycheck Loan Protection Program. “
It is unclear whether the Small Business Administration asks these affiliates to return the loans they receive.
The SBA “will conduct an investigation” if Planned Parenthood of Delaware refutes the findings “to assess the eligibility of PPD for loans to the Paycheck Protection Program and the basis for PPD eligibility certification,” according to the letter. The agency requested documents certifying certification within 10 days of receiving the letter, noting that the SBA could refer borrowers who were known to knowingly make fake certifications “for appropriate civil and criminal penalties.”
Jacqueline Ayers, Planned Parenthood Federation of America vice president of government relations and public policy, confirmed in a statement Wednesday that “several independent Planned Parenthood 501 (c) (3) organizations applied for and were granted loans based on the eligibility rules established by the CARES Act and Small Business Administration (SBA), which they met. ”
A source at Planned Parenthood said that Planned Parenthood of Delaware and other affiliates received letters by mail on Thursday, but they were not sure how many affiliates received them due to the different delivery times and people working remotely.
When contacted about the letters, SBA press director Carol Wilkerson said that the agency had no comment.
“PPFA is known to have and exercise control over its local affiliations,” wrote the SBA, appointing the Federation of American Parental Certification Federation mandates and certification for affiliates. “But PPD does not identify PPFA or other PPFA local offices as affiliates.”
Sources at Planned Parenthood pushed back to SBA’s statement that the Planned Parenthood Federation of America had managerial control over its affiliates as being wrong. The source said that the examples referenced in the SBA letter did not show that the Planned Parenthood Federation of America had shared management with or control over the internal operations of its members. The Planned Parenthood Federation of America itself did not apply for a PPP loan, the source added.
Republican Senators condemned Planned Parenthood for applying for SBA loans and asked for answers to how affiliates received them.
“It seems clear that Planned Parenthood knows that it does not qualify for small business loans under the CARES Act long before its affiliates fraudulently prove that they are eligible,” they wrote.
The Planned Parenthood Federation of America’s Ayers called the focus on affiliate loans “a clear political attack on Planned Parenthood health centers and access to reproductive health care.”
“That has nothing to do with the feasibility of the Planned Parenthood health care organization for Covid-19 relief efforts,” he added, “and everything related to the Trump administration uses the public health crisis to advance the political agenda and divert it from their own failures in protecting the American public. from the spread of Covid-19. “
Veronica Stracqualursi from CNN contributed to this report.