Planned Parenthood affiliates across the country will be forced to return $80 million worth of stimulus funds that these offices improperly applied for under the Paycheck Protection Program (PPP).
According to guidelines set out by the Small Business Administration (SBA), companies cannot receive PPP loans if the affiliate applying is part of an organization with more than 500 employees. According to the report from Fox News, the Planned Parenthood Federation of America corporate office has more than 600 employees, making the affiliate offices across the country ineligible to receive SBA stimulus support.
For example, the Planned Parenthood of Metropolitan Washington (PPMW) will receive a letter requesting that the business return $1,328,000 that it received from the PPP. Planned Parenthood of Orange and San Bernardino County received the single largest government loan to the tune of $7.5 million.
The SBA also warned that these businesses could experience “severe penalties” beyond the repayment.
So why did these Planned Parenthood locations apply for the loans?
It’s possible that some fraud could be involved., But the other possible, and more interesting, answer is that these businesses knew that Planned Parenthood’s corporate headquarters would not bail out individual clinics or affiliates in trouble.
Planned Parenthood is a business where the corporate office holds enormous power and has an incredible amount of money, while the affiliates are basically left to fend for themselves. These affiliates make money through abortions, grants, refunds through Medicaid and donations, which averages to about $7.9 million per the 49 affiliates that control the 600 clinics in the country.
Last year, Planned Parenthood lost $60 million in federal funding after the Trump Administration changed Title X regulations. As a result of that loss in funding, Planned Parenthood of Southwest Ohio Region (PPSOR) closed two health-focused clinics.
According to PPSOR’s CEO, Kersha Deibel, “These closures are the result of years of attacks on our ability to provide reproductive healthcare. Ohio politicians have passed 22 anti-reproductive health measures in recent years, including a defunding bill that went into effect earlier this year. Then came the changes to the Title X program, from an administration that has made it clear that it wants to force out trusted health centers that provided evidence-based, comprehensive reproductive healthcare.”
But why did those two clinics really have to close? After all, Planned Parenthood’s revenue has been hitting a billion dollars since 2006, with $5.1 billion in private donations alone.
The business isn’t hurting for cash, but apparently is unable to save two clinics that were helping community members supposedly “live strong, healthy lives.” And now it wants the U.S. government to help bail out its other clinics across the country.
Several Senators have already requested that the abortion business return the money and that the SBA must have a full investigation. Senator Marco Rubio, R-Fla., issued a strong statement against Planned Parenthood affiliates.
“There is no ambiguity in the legislation that passed or public record around its passage that organizations such as Planned Parenthood, whose parent organization has close to half a billion dollars in assets, is not eligible for the Paycheck Protection Program,” Rubio said. “Those funds must be returned immediately. Furthermore, the SBA should open an investigation into how these loans were made in clear violation of the applicable affiliation rules and if Planned Parenthood, the banks, or staff at the SBA knowingly violated the law, all appropriate legal options should be pursued.”
The PPP was designed for small businesses that need support, not a multibillion-dollar organization that is capable of supporting both itself and its affiliate offices.