Advocates are warning startups they may have to give back SBA loans - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Startup advocates worry venture-backed companies that got money under the $670 billion small-business loan program are going to have to give it back

all acknowledged getting loans under the initiative. Many such companies have since promised to return the money.

When companies determined whether they need the loans, they now need to consider, as part of the new rules, whether they have access to other sources of capital, including from their investors or owners or the public stock markets and can use that money to support their operations in a way "that is not significantly detrimental to the business.

The SBA "inserted a new standard changing the rules of the game after the players have left the field, and then everyone was sort of scrambling to figure out what does that mean and how do I reassess," Zimmerman said.Under the new rules, companies that return the money they received under the program by May 7 won't be held liable for making a false certification about their need for the loans. Some startups are already refunding the money or are being advised to do so.

The problem for startups that took the loans is that many of them have already spent some of the money they received, said Zimmerman. Many have also made assurances to employees that they won't be laid off or to landlords that they'll be paid, thanks to those loans, he said.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 729. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

SBA watchdog probes small business loans as scrutiny intensifiesThe response came after Warren and Velázquez asked the SBA and Treasury Department inspectors general to investigate the Paycheck Protection Program. Bad things are always going to happen in life. People will hurt you. But you can't use that as an excuse to hurt someone back.
Källa: politico - 🏆 381. / 59 Läs mer »

The UK Chancellor announces Bounce Back Loans scheme to help SMBs - Business InsiderThe Bounce Back Loans scheme is intended to speed up distribution of coronavirus aid to SMBs — but alt lenders are concerned they won't be accredited in time You’re not reading this by accident. This is your confirmation. Everything is going to be alright.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

Dispensed Business Insider's weekly healthcare newsletter May 1 - Business InsiderWelcome to Dispensed, BI's weekly healthcare newsletter. This week, the TLDR on remdesivir, a promising experimental coronavirus treatment.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

SBA watchdog probes small business loans as scrutiny intensifiesThe response came after Warren and Velázquez asked the SBA and Treasury Department inspectors general to investigate the Paycheck Protection Program. Bad things are always going to happen in life. People will hurt you. But you can't use that as an excuse to hurt someone back.
Källa: politico - 🏆 381. / 59 Läs mer »