Some public companies have been slammed for obtaining the small business loans.
on the implementation of the CARES Act, the Treasury Department and Small Business Administration said Thursday"it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith" attesting to its need for the loan.
Some had already committed to returning their loans, after facing backlash from lawmakers, small business owners and administration officials critical of their use of the program, and concerned that some may have been obtaining the loans improperly. Treasury Secretary Steven Mnuchin speaks about the coronavirus in the James Brady Press Briefing Room of the White House, April 21, 2020, in Washington.With more than a million potential borrowers flooding banks with loan applications, the program ran out of money after nearly two weeks. As of April 16, the agency approved more than 1,661,000 loans from nearly 5,000 lenders.
“With a limited pot, you’re going to expect to see the more sophisticated companies get in the front of the line, and start to capture those limited resources and leave many others out in the cold.”Designed for businesses with 500 employees or less, the initiative also included exceptions for big restaurant and hotel chains, along with franchises, with less than 500 employees per location.
“This was a difficult decision because our employees are extremely important to us, but it’s impossible to ignore the fact that our finances allow us to weather financial hardship for a longer period than independent restaurant owners,” the company, which had planned to hire back some furloughed workers with the loan, said in a statement.
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