Sen. Cornyn calls for audit after Texas congressional campaign received Paycheck Protection Program loan

Sen. John Cornyn (R-TX) said he will request an audit of the Small Business Administration's Paycheck Protection Program after KXAN first reported a Texas congressional campaign directly received funds designed to help struggling businesses survive the COVID-19 pandemic.

AUSTIN (KXAN) — KXAN first reported that a Texas congressional campaign directly received funds intended to help struggling businesses during the pandemic — now Texas Republican Sen. John Cornyn says he’s requesting an audit of the Small Business Administration’s Paycheck Protection Program.

KXAN first reported on Monday that Dr. Christine Mann’s political committee received a PPP loan for $28,600. Mann is a candidate in the Democratic primary runoff for Texas’ 31st Congressional District.

“I don’t think we ever dreamed that we would be providing financial assistance to political campaigns,” Cornyn said in an interview with KXAN. “What we were trying to do was focus on small businesses and encourage them to try to keep their employees on payroll so that people could continue to earn an income while we work our way through this public health crisis.”

“That was a surprise to me.”

The Small Business Administration does not authorize PPP loans but has the ability to review applications. Instead, borrowers self-certify that they are eligible for the loan which is then distributed by an authorized lender.

A spokesperson for the Mann campaign said that their application was self-certified as a “business.”

Qualifying entities for PPP loans include “any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern.”

The Mann campaign received the PPP loan in May and paid it back, in full, in June.

This is a developing story. KXAN politics reporter John Engel will have a full report tonight at 6 p.m.