Houston Chronicle Sunday

Planned Parenthood’s stimulus turns political

- By Aaron Gregg

WASHINGTON — A political fight over $80 million in subsidized Small Business Administra­tion loans that were awarded to Planned Parenthood nonprofits is escalating, with 127 Republican lawmakers on Friday calling for a federal investigat­ion of the loans and 31 Democratic senators on Saturday defending them.

Each of Planned Parenthood’s state and local affiliates is a separate nonprofit, with its own leadership and funding organizati­on. But the Small Business Administra­tion, a federal agency that is distributi­ng $669 billion in subsidized loan funds to address the economic crisis caused by the coronaviru­s pandemic, sent letters to dozens of Planned Parenthood affiliates last week ordering them to give back the money.

The SBA said the local chapters are too closely affiliated with Planned Parenthood’s national organizati­on to be considered independen­t entities. The loans received by Planned Parenthood organizati­ons total approximat­ely $80 million, according to a letter from congressio­nal Republican­s.

“Leave aside all the other issues, they do not qualify,” Sen. Marco Rubio, R-Fla., told Fox News last week. Rubio has long opposed federal funding for organizati­ons that perform abortions. Rubio, who helped write the CARES Act that created the small business loan program and has been a vocal advocate for it, demanded an investigat­ion.

“They need to return the money and if they did this knowingly they need to be held accountabl­e,” Rubio said. “And whoever helped them do this knowingly needs to be held accountabl­e. That includes, potentiall­y, people on staff at the SBA, the banks, and anybody else.”

In their letter Saturday, 31 Democratic senators asked SBA administra­tor Jovita Carranza and Treasury Secretary Steve Mnuchin to stop what they called “ideologica­lly-driven action” against Planned Parenthood organizati­ons.

“The SBA must administer the PPP program in a manner that is uniform and does not target any entity or subset of entities for exclusion, especially if doing so is based on a political ideology, the services provided by that entity, or any other factor unrelated to the criteria establishe­d by law in the CARES Act,” the senators wrote.

In the loan program’s initial $349 billion round of funding, numerous wellknown national brands received funding through their local affiliates — the AutoNation car dealership­s, Shake Shack, and Ruth’s Chris Steak House, to name a few.

The Cares Act did not forbid such organizati­ons from receiving loan funds, providing the franchises appear on a list of SBA-approved franchises. But anger over the loans grew when the initial tranche of funding ran out, and the SBA clarified its rules, requesting that publicly traded companies return the money by May 18. Many did, but others refused, saying they qualified under the original terms of the loan program.

In demanding money back from the Planned Parenthood affiliates, the SBA said the local organizati­ons are little more than tendrils of a powerful national organizati­on.

Planned Parenthood Federation of America “is known to have and to exercise control over its local affiliates,” the SBA wrote in a letter a local affiliate, which was subsequent­ly posted online by NPR.

Citing a publicly available version of the national organizati­on’s bylaws, the SBA noted that Planned Parenthood’s local organizati­ons must submit to rigorous accreditat­ion reviews every three years and can be stripped of their affiliatio­n if they don’t maintain certain standards.

Planned Parenthood rejected that descriptio­n of its organizati­on, noting that the bylaws themselves have to be approved by the local chapters. In a memo distribute­d to reporters, it noted that the national organizati­on, Planned Parenthood Federation of America, “has its own Board of Directors and management team, which is different from the Boards and management teams of the member organizati­ons.” It said that neither the text of the Cares Act that set up the PPP program nor any of the regulation­s or informatio­nal materials published by the SBA would exclude an affiliate with fewer than 500 employees from receiving a loan.

“This is a clear political attack on Planned Parenthood health centers and access to reproducti­ve health care,” the organizati­on wrote. “It has nothing to do with Planned Parenthood health care organizati­ons’ eligibilit­y for COVID-19 relief efforts, and everything to do with the Trump administra­tion using a public health crisis to advance a political agenda and distract from their own failures in protecting the American public from the spread of COVID-19.”

Representa­tives of local Planned Parenthood organizati­ons argue that they are just as worthy of an economic lifeline as other organizati­ons.

“When we looked at the CARES Act it was very clear that we were eligible,” said Stephanie Fraim, president and chief executive of Planned Parenthood of Southwest Central Florida, which received roughly $2 million under the Paycheck Protection Program. “We were facing tough choices about whether to keep staff on or not.”

Fraim says her organizati­on has already started spending the loan funds, with about 85 percent of it going to payroll. So far, the group has been able to avoid laying off any of its 187 employees. It’s kept all 10 of its clinics open for procedures it deemed essential, including treatment for urinary tract infections, cancer treatment, hormone replacemen­t therapy, and abortions.

Fraim says her organizati­on received the SBA letter demanding it return the money on Friday. She said no decision has been reached on how to respond.

“None of us right now knows what the future is going to hold,” Fraim said. “If we can keep 100 percent of our staff, it will be one of the proudest thing’s we’ve done in our career.”

Newspapers in English

Newspapers from United States