My senior senator, Marco Rubio, seems to be part of a disingenuous campaign to smear Planned Parenthood — yet again. This time, the BS Brigade is claiming that Planned Parenthood acquired Paycheck Protection Program loans for which they were ineligible.
The problem, of course, is that the sanctimonious set does not approve of Planned Parenthood because a very small segment of PPA’s operations involves providing abortions. It doesn’t seem to matter that abortions are a legal and safe medical procedure. The self-righteous windbags do not approve and that settles it.
According to the Christian Post (yes, it’s Brandon Showalter again):
Republican Senators are demanding that the nation’s largest abortion business return $80 million in coronavirus relief loans that its affiliates applied for and received despite their ineligibility.
Pro-life elected officials and organizations are demanding that Planned Parenthood, which has over $2 billion in net assets, return the money after 37 of its affiliates received Paycheck Protection Program loans intended for small businesses.
Senator Ben Sasse of Nebraska is capable of being as idiotic as anyone:
“Planned Parenthood, the nation’s largest abortion business, tried to defraud taxpayers during the worst economic downturn since the Great Depression,” Sen. Ben Sasse, R-Neb., said Wednesday. “The Paycheck Protection Program is supposed to be a lifeline for small businesses, not a slush fund for Big Abortion. The administration needs to reclaim that money and fire the bureaucrats who signed off on this scam.”
“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,” Sen. Marco Rubio, R-Fla., said in a statement.
“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,” he added.
Rubio is right about one thing. There is no ambiguity. Rubio is unambiguously full of crap.
For the record, each Planned Parenthood affiliate is a separate legal nonprofit entity with a unique entity identification number. Each affiliate selects its own officers and board members.
Given Rubio’s involvement, in Florida there are two affiliates. I do not know if either has a PPP loan but the larger of the two is Planned Parenthood of South Florida and the Treasure Coast, a 501(c)3 nonprofit, EIN 591391115.
The smaller of the two is Planned Parenthood of Southwest and Central Florida, also a 501(c)3, EIN 591274328. The two entities have separate managers and directors.
I will deal with the larger of the two. The principal officer is Lillian Tamayo. Ms. Tamayo is neither an officer nor director of Planned Parenthood Federation. During 2018, the affiliate employed 190 individuals including departures and new hires. Marco, that’s at least 310 below the threshold.
30 officers and directors are listed on the form 990. All of them are independent of Planned Parenthood Federation and the other Florida PPA.
Four tests for affiliation based on control apply to participants in the Paycheck Protection
Program. For purposes of the determining the number of employees of an applicant to the
Paycheck Protection Program, the applicant is considered together with its affiliates.
Following is a summary of the applicable affiliation tests.
(1) Affiliation based on ownership.
Nonprofit organizations do not have ownership.
(2) Affiliation arising under stock options, convertible securities, and agreements to merge.
None of the above is applicable to a nonprofit organization except, perhaps, an agreement to merge which does not exist.
(3) Affiliation based on management. Affiliation arises where the CEO or President of the
applicant concern (or other officers, managing members, or partners who control the
management of the concern) also controls the management of one or more other concerns.
Each Planned Parenthood affiliate is independently managed. The two Florida Planned Parenthood affiliates have completely separate management. Even if they didn’t (they do) the combined workforce is still below 500.
(4) Affiliation based on identity of interest. Affiliation arises when there is an identity of
interest between close relatives, as defined in 13 CFR 120.10, with identical or substantially,
identical business or economic interests …
According to 13 CFR 120.10:
Close Relative is a spouse; a parent; or
a child or sibling, or the spouse of any
That doesn’t work either. Unless a Planned Parenthood affiliate received one of these loans and has over 500 employees, they are not subject to affiliation rules published by the SBA.
So unless Sen. Sasse or Sen. Rubio can come up with a PPA affiliate with over 500 employees they are just belching hot air. After I hit post I intend to contact Little Marco’s office.