Large Public Companies May Be Shut Out Of New PPP Funds After Shake Shack Fallout

After many small businesses were unable to secure funds from the government's economic rescue plan, the Small Business Administration announced

related to the embattled Paycheck Protection Program which could potentially bar larger public companies from the latest round of stimulus money.... [+]In order to receive a PPP loan, businesses must certify that they are in need of funding that they can’t get from any other source. The SBA said that since public companies have both cash value in the form of shares and access to capital markets , it’s “unlikely” that they will be able to make that certification.that 71 publicly traded companies that received PPP loans before its $350 billion in funding ran out last week.

Shake Shack was the most highly valued publicly traded company to receive a loan , though after a public backlash the companyOther large restaurant chains including Ruth’s Chris Steakhouses, Potbelly and J. Alexander’s also received PPP money. a bipartisan bill worth some $480 billion that includes additional $310 billion for the PPP, with $60 billion of that money specifically reserved for smaller businesses without existing banking relationships.

can apply for loans of up to $10 million at 1% interest to so they can cover two months of payroll and overhead expenses. If the borrower retains workers and doesn’t cut their wages, the government will forgive most or all of the loan and repay the bank lenders.

theothersarahh Good! 🖕shake shack!!!

theothersarahh So is the problem the criteria for PPP loans or was SBA not scrutinizing applications closely enough to see if applicants met the criteria? If the problem is the criteria, how could seasoned lenders not anticipate what happened? Or did Congress not consult with lenders?

theothersarahh Meanwhile, we haven't gotten a Stimulusdeposit and the website keeps up that message of little hope.

theothersarahh As they should be

theothersarahh StayHome COVID19

theothersarahh *should

United States United States Latest News, United States United States Headlines

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

Some Not-So-Small Companies Are Getting Small-Business Loans Under PPPThe Paycheck Protection Program was meant for small businesses, but some big, publicly traded companies have cashed in too, including sandwich chain Potbelly, video storage company Quantum and coal producer Hallador Energy, each of which got $10 million. Greed!!! The program is just an extension of Trump's pay to play philosophy. He sees public office as a mechanism to transfer taxpayer assets to his private account. Graphic from OpenSecrets These are the places that have ripped off the small businessman! We need to not eat at RuthsChris & Potbelly & let them deal with the consequences!
Source: NPR - 🏆 96. / 63 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. Hate to break it to you but this is all banks regardless of size Government should have done a better job on incentivizing banks on processing smaller payroll loans than larger. They did try with a tiered commission but it wasn’t effective enough. As a reminder, people should never want big government cause they rarely get things done right Unethical
Source: BusinessInsider - 🏆 729. / 51 Read more »

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. Haha-- by joining bi prime? Nah.
Source: BusinessInsider - 🏆 729. / 51 Read more »