Paycheck Protection Program: Enhanced Transparency vs Business Privacy

By Scott Zickefoose, CPA, CM&AA, Transaction Advisory & Tax Partner

Paycheck Protection Program: Enhanced Transparency vs Business Privacy


By Scott Zickefoose, CPA, CM&AA, Senior Tax Manager | Business Turnaround Services Team

Paycheck Protection Program Enhanced Transparency

On June 19, 2020, the Small Business Administration (SBA) and the U.S. Department of the Treasury announced that they had reached bipartisan agreement with leaders of the U.S. Senate Small Business Committee to disclose additional data regarding the Paycheck Protection Program (PPP). The PPP, which has provided potentially forgivable loans to help companies pay their employees during the COVID-19 pandemic, has raised many questions debating the balance of transparency versus privacy and protection of businesses. This announcement of enhanced transparency is intended to strike a balance between transparency and privacy.

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SBA PPP Loans Greater Than $150,000

The extent of information that will be disclosed depends on the size of the borrower’s loan. For loans greater than 150,000 dollars, which account for nearly 75 percent of the loan dollars approved, the following information will be disclosed:

  • Business name
  • Address
  • NAICS code
  • Zip code
  • Business Type
  • Demographic data
  • Non-profit information
  • Number of jobs supported

This information will be stratified based on loan size in order to provide some privacy. The loan amounts disclosed will be grouped as follows:

  • $150,000 – $350,000
  • $350,000 -$1 million
  • $1 million -$2 million
  • $2 million -$5 million
  • $5 million – $10 million

SBA PPP Loans Less Than $150,000

As for loans less than $150,000, information will be aggregated by industry, by business type, by zip code, and by numerous demographic categories. According to the SBA, the average loan is $112,000, so many companies who have received loans will not be disclosed.

Those who have called for transparency, such as Senate Small Business Chairman, Marco Rubio, have said that disclosure will help to evaluate the effectiveness of the program and make sure that taxpayer money is going where Congress had intended. All parties are expected to release more details, including the timing of such disclosures, in the coming weeks

If you have questions, we encourage you to reach out to your Keiter team memberScott Zickefoose, or Matt Austin.

Disclaimer:  This content has been prepared for general guidance and informational purposes only based on the date published.
The FFCRA, CARES Act, and SBA Paycheck Protection Program (PPP) are continually releasing new guidance that may change the information provided within this content. Keiter recommends that you perform your own independent research and/or speak with a qualified accounting professional before making any financial business decisions. © 2021 Keiter, All Rights Reserved.

Additional Resources

COVID-19 Business Resource Library

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About the Author

Scott Zickefoose

Scott Zickefoose, CPA, CM&AA, Transaction Advisory & Tax Partner

Scott works closely with his clients to identify tax planning and savings opportunities.

Scott is a member of Keiter’s Emerging and Growth Business team, where he consults with early stage business owners on relevant financial and tax matters, and is a member of the Merger and Acquisition team, where he specializes in providing sell-side and buy-side quality of earnings services. He is also a member of Keiter Advisors, Keiter’s full-service transaction advisory group serving lower middle market companies and their owners.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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