April 3, 2020 — Air Conditioning Contractors of America (ACCA) petitioned President Trump by letter today, asking him to keep Small Business Administration loans for COVID-19 relief out of the hands of cash-flush private equity firms and venture capitalists.
The letter to President Trump from Barton James, ACCA president and CEO, was written in response to efforts by Sen. Nancy Pelosi, to earmark some of the SBA loan funds to technology developers based in California's Silicon Valley. Pelosi maintains a residence iin San Francisco. Pelosi has written to Treasury Secretary Steve Mnuchin, asking that loan funds be provided to Silicon Valley startup businesses of 500 or fewer employees.
Barton James's letter reads, in part:
As an association of small businesses, ACCA is opposed to expanding the SBA loan programs to private equity companies and venture capital firms, which are reportedly lobbying to have access to these vital resources. In fact, Speaker Pelosi has sent letters to Secretary Mnuchin and Administrator Carranza requesting the SBA programs be expanded to include additional industries.
Private equity firms have substantial capital and other significant resources available to them that many HVACR contractors do not. America’s HVACR contractors want to ensure that the SBA loan programs are reserved for small businesses who are in desperate need of immediate assistance, not large firms and wealthy investors who already have plenty significant resources at their disposal.