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A bipartisan group of New York congressmen on Friday threatened to shame banks and companies that abuse a replenished small-business loan program designed to avoid coronavirus layoffs.

Five lawmakers on a virtual press conference also urged federal officials to issue new guidance to ensure “small” small businesses get priority in a new tranche of $310 billion in forgivable loans.

“We will be watching what those big banks are doing,” warned Democratic Rep. Gregory Meeks, chairman of the House Subcommittee on Consumer Protections and Financial Institutions.

“There’s going to be hearings,” said Rep. Tom Suozzi, another Democrat. “If you’re a big bank and you think that nobody’s paying attention right now because we’re all so busy, we’re going to be paying attention later on.”

Banks are authorized under the Small Business Administration’s Paycheck Protection Program to issue loans to companies with up to 500 employees, and in some cases more. An initial $350 billion was exhausted last week. Legislation signed Friday by President Trump injects another $310 billion into the program.

The loans are intended to cover payroll and overhead and will be forgiven if companies don’t lay off workers.

Republican Rep. Lee Zeldin said on the press call that he was concerned that unscrupulous hedge funds might abuse the program to cover salaries.

“For anyone thinking about applying: if you know that you don’t need it… don’t even think of it,” Zeldin said. “You will have bipartisan shaming that will be coming not just from elected officials, but from the media, and from an American public that all believes strongly this money is meant for the little guy.”

The initial raft of loans included large awards to major national chains, including $20 million for Ruth’s Chris Steak House and $10 million for Shake Shack. Both companies agreed to return the funds after public outrage.

“There’s a lot that you can be doing, other than being the next Shake Shack that puts in the application and then gets shamed into returning it,” Zeldin said.

Rep. Tom Suozzi, speaks on the floor of the House of Representatives at the US Capitol in Washington, Thursday.APRep. Tom Suozzi, speaks on the floor of the House of Representatives at the US Capitol in Washington, Thursday.AP

GOP Rep. Peter King called on the Treasury Department and SBA to issue new guidance to banks instructing them to prioritize smaller companies.

“I don’t want to give the banks the excuse of saying they don’t have guidance,” King said.

Rep. Kathleen Rice, a Democrat, said she wants the guidance to come quickly so banks don’t give priority to large corporate clients.

“We have to send a very clear message to the banks: We’re watching,” Suozzi said. “We need you to help these mom and pop shops. We need to help the plumber, and the electrician, and the doctor and the dentist.”

The additional $310 billion signed into law Friday includes a new $60 billion set-aside for smaller banks and credit unions.

Since last month, 26 million Americans — or about 16 percent of all workers — lost their jobs due to the coronavirus pandemic and government-ordered business closures.

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