U.S. Small Business may face probes over payroll loans, Treasury, DOJ officials warn

Mnuchin said on Fox Business Network it was “questionable” whether some larger companies qualified for the Paycheck Protection Program (PPP), based on a self-certification step in the loan process. He said businesses need to look carefully at their applications to be sure they can certify that the forgivable loans of up to $10 million are necessary.

As Congress readies another $310 billion in payroll loan funds for small businesses shut down by the coronavirus, Mnuchin’s comments indicate the administration is paying more attention to oversight during this round of funding.

The initial $349 billion in small business loan funds, depleted in less than two weeks, went to companies including sandwich chain Potbelly Corp and steakhouse operator Ruth Hospitality Group, prompting complaints that smaller, independent restaurants and “mom and pop” businesses were squeezed out.

Burger chain Shake Shack returned its $10 million loan on Monday after it was able to raise $150 million in capital in a stock offering.

Harvard University on Wednesday decided to forego the $8.6 million it was allocated under a separate coronavirus aid program, the Higher Education Emergency Relief Fund, after President Donald Trump questioned whether the elite school needed the money.

In the PPP application form, companies need to certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.”

“I think a lot of these big companies, it’s questionable whether they can make that certification; I think they should review it,” Mnuchin told Fox Business Network.

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