Most companies face little risk of punishment for taking PPP loans, legal experts say

  • 📰 CNBC
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Changes to guidance in the small business loan program may give ammunition to critics who charge that the government is too lax in its oversight.

" and even criminal liability if they didn't really need the government money. Mnuchin's warning came at the height of an uproar last month over large companies using the PPP. Companies that could raise money elsewhere were given a deadline to return the funds.in a CNBC interview on April 28. "It's the borrowers who have criminal liability if they made this certification and it's not true.

"I don't see anybody being convicted for this, honestly," said Scott Pearson, a partner at Manatt, Phelps & Phillips. "What will scare people away is the threat of being accused. The suggestion there is criminal liability for a company that has a good argument that they were eligible for these loans based on the structure of the CARES Act is ludicrous."

"They're trying to use public shaming mechanisms to embarrass companies into giving money back that, technically, they're allowed to take under the program," said Axelrod, now a partner at law firm Linklaters.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

realDonaldTrump Of course they aren't punished. Graft at the top takes care of others. Taxpayers are punished! TrumpIsJealousOfObama TrumpHasNoPlan

How many of them are close to chump or putin?

Yes they will be at risk when the food st settles down and government has more time to comb through applications, there will be a lot of penalties because there’s a lot of fraud AND YOU KNOW IT!!!

It's not the peoples country anymore it's theirs. The big corporations screw of the people all the time while the GOP sets back and counts their bonuses.

Unless they are targeted for political purposes...

well the government could pass a retroactive law with massive penalties including jail time would be a nice start

Haha, india mein bhi yahi hota hai..

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Magic Johnson Makes Another Assist—to the Small Business Aid ProgramEarvin “Magic” Johnson said his EquiTrust Life Insurance Co. will provide $100 million in capital to fund loans for minority-owned businesses through the Small Business Administration’s Paycheck Protection Program. That's is so respectable ❤️ Just tell us how you cured that virus homie Perhaps Earvin doesn't think white communities were hit hard by the Coronavirus. This is racism in it's purest form.
Source: WSJ - 🏆 98. / 63 Read more »