Sen. Gary Peters Gary Charles PetersGOP set to release controversial Biden report Democrats fear Russia interference could spoil bid to retake Senate Biden promises Democratic senators help in battleground states MORE (D-Mich.) is calling for a government watchdog to investigate how aid for small businesses impacted by the coronavirus was distributed, after large chains disclosed they qualified for some of the funding.

Peters, the top Democrat on the Senate Homeland Security and Governmental Affairs Committee, sent a letter on Tuesday to Gene Dodaro, the comptroller general for the Government Accountability Office (GAO), asking for the investigation.

"There is also evidence that a substantial amount of PPP loans have gone to large hotel and restaurant chains, rather than the struggling small and minority-owned businesses who may be forced to permanently close their doors without urgent assistance," he wrote, referring to the Paycheck Protection Program.

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"I am concerned that PPP loans may not have gone to those who need them most," he added.

Peters, who is up for reelection in November, noted that 1 million individuals in his state have filed for unemployment in the past month but that Michigan currently ranks 35th for the amount of processed PPP loans.

The program, created under last month's $2.2 trillion coronavirus package, was intended to provide loans and grants to businesses with fewer than 500 employees. Congress initially appropriated $349 billion for it, but the Small Business Administration announced late last week that it had run out of money.

Some corporations, including Shake Shack, Potbelly Sandwich Shop and Ruth’s Chris Steak House, disclosed that they received PPP money. Shake Shack subsequently said it would return its loan of $10 million.

Peters is asking for the GAO to investigate how the Small Business Administration and lenders determined which businesses to issue loans to, including how loans were distributed by state as well as the number of loans, number of lenders, number of applications, number of loan recipients and total loan amount per location.

Peters also wants to know how PPP loans were distributed across companies of different sizes. Democrats and some Republicans have raised concerns that larger companies were able to more easily get the assistance than smaller businesses that might not have an existing relationship with a bank.

He's also asking the GAO to investigate how the Small Business Administration made sure lenders and loan applicants complied with the rules of program.

Some senators have raised concerns that businesses that are not negatively impacted by the virus or have access to other revenue streams applied for funding through the small-business program.