Friday, July 10, 2020

The Planned Parenthood Obsession

Our community and Planned Parenthood have common oppressors.
According to American Family Association, an anti-LGBTQ hate group:
Jim Sedlak of the American Life League tells [AFA] the nation's largest abortion provider received between $66 million and $150 million in taxpayers’ money.

“That it should never have gotten in the first place because they were not entitled to it,” he says. “Planned Parenthood Federation of America has 16,000 employees, which is a little more than 500.”

Forty-two of 49 Planned Parenthood affiliates applied for the SBA loans and were approved only for the federal agency to realize what had happened.
Jim Sedlak has the intellectual curiosity of past-date mayonnaise. He is just parroting a religious right talking point; one that is factually incorrect.

We begin with the Federal Register which published the rules for obtaining Paycheck Protection Program loans (most of which will become grants):
III. Affiliate Rules for Paycheck Protection Program
[…]
1. Affiliation Rules Generally
Are affiliates considered together for purposes of determining eligibility?
In most cases, a borrower will be considered together with its affiliates for purposes of determining eligibility for the PPP. Under SBA rules, entities may be considered affiliates based on factors including stock ownership, overlapping management, and identity of interest. 13 CFR 121.301.
According to Title 13, § 121.301 (cited above) there are seven rules for affiliation:
  1. Affiliation based on ownership.
  2. Affiliation arising under stock options.
  3. Affiliation based on management [or board control].
  4. Affiliation based on identity of interest. Affiliation arises when there is an identity of interest between close relatives.
  5. Affiliation based on franchise and license agreements. The restraints imposed on a franchisee or licensee by its franchise or license agreement generally will not be considered in determining whether the franchisor or licensor is affiliated with an applicant franchisee or licensee provided the applicant franchisee or licensee has the right to profit from its efforts and bears the risk of loss commensurate with ownership. SBA will only consider the franchise or license agreements of the applicant concern.
  6. Determining the concern's size. In determining the concern's size, SBA counts the receipts, employees (§ 121.201), or the alternate size standard (if applicable) of the concern whose size is at issue and all of its domestic and foreign affiliates, regardless of whether the affiliates are organized for profit.
  7. Exceptions to affiliation. For exceptions to affiliation, see 13 CFR 121.103(b).
Items #1 and #2 apply exclusively to for-profit organizations.

Item #3 does not apply. Each Planned Parenthood affiliate is independently managed and has an independent board of directors. Each has a unique employer identification number (EIN) and each files an independent form 990 tax return in contrast to a group return.

Item #4 does not apply. There are no familial relationships between affiliates.

Item #5 does apply. The reality is that each Planned Parenthood affiliate is legally a licensee.

Item #6 does not apply under standards established in items #1 through #5.

Item #7 is inapplicable.

I get it. The Christian right does not approve of Planned Parenthood because some (perhaps most) of the affiliates offer abortion services. I happen to disapprove of hate groups, some of whom received PPP funds.

However, the law of the land is still the ruling in Roe v. Wade. Abortion is a legal medical procedure.

Religious disapproval does not change the rules and laws regarding a federal program like the PPP. Nor does my disapproval of Liberty Counsel have any effect on those same rules and laws.

Three Care Net affiliates received PPP loans. Care Net is a group of Christian pregnancy resource centers with a mission of talking people out of abortions. There are 36 affiliates. I pulled up the Puget Sound affiliate and it has 41 employees. The total employment, if we treat Care Net the way these folks want to treat Planned Parenthood is likely to be greater than 500.

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