U.S. Treasury Secretary Steven Mnuchin warned on Wednesday that companies that received coronavirus rescue money intended for small businesses could be investigated if it appears they did not really need the money.
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.
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Severity: Warning
Message: count(): Parameter must be an array or an object that implements Countable
Filename: amp/news_details_amp.php
Line Number: 252
Backtrace:
File: /home/smartmarketnews/public_html/application/views/amp/news_details_amp.php
Line: 252
Function: _error_handler
File: /home/smartmarketnews/public_html/application/controllers/Amp_controller.php
Line: 41
Function: view
File: /home/smartmarketnews/public_html/index.php
Line: 315
Function: require_once
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.
media@smartmarketnews.com | sales@smartmarketnews.com
Contact Us