Transcript
Two weeks after the $349 billion Paycheck Protection Program (PPP) launched, all the money was gone.
Then it was discovered that most of the money went to large corporations like restaurant chains, energy companies, CBD firms and real estate investment trusts.
Small business owners were livid, some even sued their banks.
In recent days well-known brands like Ruth’s Chris, Shake Shack and Kura Sushi USA buckled under the public pressure and announced plans to return the money.
Now the federal government is hoping other big companies will pay up.
Under the new Treasury guidelines issued Thursday, PPP borrows must certify in good faith they absolutely need the loans to keep operating.
And any large company that borrowed before the new guidelines but repays the loan in full by May 7 will be deemed by the SBA to have made the required certification of good faith.
Bottom line: the Treasury wants its money back.
Posted – 4.24.20