Publicly traded companies have 2 weeks to give back loans intended for small businesses or potentially face 'severe consequences,' Treasury Department reportedly says
FILE PHOTO: U.S. President Trump leads daily coronavirus response briefing at the White House in WashingtonThe Treasury Department is asking publicly traded companies to return their loans from the federal government by May 7,Large companies who drew from the fund intended for small businesses were criticized after many small businesses were unable to access loans as the fund ran out of money.
Some public companies, like Shake Shack, gave back the money after they realized small businesses weren't able to access the loans, but some companies like Ruth's Chris Steak House have held on to the funds.
The request from the Treasury Department comes after large companies who took loans from the fund were criticized heavily as the fund ran out of money — and small businesses, which the fund was intended to help, were unable to get a loan. Large companies were able to access the funds through a loophole in the restrictions that were meant to save the loans for use only by small businesses., which received a $10 million loan, said that when they realized small businesses couldn't access the fund, they gave back their loan to free up more cash, but some businesses like Potbelly and Ruth's Chris Steak House have held on to their loans.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How small businesses can get the maximum forgiveness on PPP loans - Business InsiderUsing the loans for anything other than payroll costs, rent, or utility bills will ultimately reduce the payment amounts that are forgiven.
Read more »
Several major US banks are being sued for unfair PPP lending practices - Business InsiderJPMorgan Chase, Wells Fargo, Bank of America and US Bank are being sued for unfair practices in their processing of Paycheck Protection Program loans.
Read more »
Opinion | Why did big corporations get PPP loans instead of small businesses like mine?Opinion | Michael Vendome: 'I understand that during this crisis everyone needs help, but if the government is going to call something a 'small-business loan,' then it needs to make sure it actually goes to small businesses.' - NBCNewsTHINK
Read more »
Large Public Companies May Be Shut Out Of New PPP Funds After Shake Shack Fallout71 publicly traded companies received PPP loans before its original $350 billion in funding ran out last week, Forbes found.
Read more »
Sweetgreen Returns $10 Million PPP Loan, But It May Not Get RedistributedSweetgreen, the $1.6 billion fast-casual salad chain, said today it would return the $10 million Paycheck Protection Program loan it received but due to congressional policy, the money may not actually get reallocated in that manner
Read more »
Petition Demanding Ruth’s Chris Give Back PPP Loan Has Over 200,000 SignaturesPlus, Chipotle is being fined for tainted food, and more news to start your day
Read more »