Demand Fair Enforcement of PPP Regulations

We, the undersigned, call upon Congress and the Department of Justice to ensure fair and equitable enforcement of Paycheck Protection Program (PPP) regulations.

During the unprecedented crisis of the COVID-19 pandemic, the federal government created the PPP to help small businesses survive. Millions of business owners applied in good faith, followed the guidelines as they understood them, and used the funds to do exactly what the program intended — protect jobs and save businesses.

Now, years later, many of these same business owners face investigations and prosecutions — even as the government itself has acknowledged that the regulations were ambiguous. Meanwhile, large financial institutions like Kabbage, which processed billions in PPP loans with documented fraud, have received favorable treatment and settlements.

We demand:

• Equal enforcement standards for individual borrowers and large institutions
• Recognition that regulatory ambiguity should not be weaponized against good-faith borrowers
• Congressional oversight of DOJ's PPP enforcement practices
• Legislative reform to prevent "trial by exhaustion" tactics that force small business owners into bankruptcy before they can defend themselves
• A review of all PPP cases where borrowers relied on SBA Standard Operating Procedures (including SOP 50 10 5(K)) to determine eligibility

In the year of America's 250th anniversary, we call for a return to the founding principles of due process, equal protection, and fairness under the law.