"Once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need," the team said in a statement. Once again, after news coverage, the Lakers decided to give it back. Like the Los Angeles Lakers basketball team, the eighth most valuable sports team in the world, worth an estimated $3.7 billion, according to Forbes.īut the Lakers applied and received a $4.6 million small business loan. Congress overwhelmingly approved another $310 billion for the fund this week in a bill President Donald Trump is expected to sign.Then there were other organizations that aren't quite what most people would call a small business. They'll be able to repay the money they received by May 7 without penalty, according to Thursday's memo.Ĭriticism of the large business loans has grown since the entire $349 billion that Congress allocated to the PPP ran out last week, leaving many very small businesses without a financial lifeline. Large restaurant chains were able to access the program due to a provision that allows loans to certain businesses that may have more than 500 employees but not at one specific location. Otherwise, it carries a 1% interest rate and must be paid back within two years. The loan, based on eight weeks of expenses, does not have to be paid back if at least 75% of the money is spent keeping or rehiring workers. More: Record 26 million Americans filed for jobless benefits over 5 weeks as layoffs wind on It offers firms employing 500 or fewer workers low-interest loans of up to $10 million to cover their pandemic-related costs. "To those large publicly traded companies who have already benefited, I will suggest, now would be a time to exhibit some good corporate citizenship by returning those funds," she said.Ĭongress and the administration created the program as part of the nearly $2 trillion CARES Act passed last month to rescue some 30 million small businesses walloped by the social distancing remedies to the coronavirus crisis. Velázquez, D-N.Y., urged others to follow suit. On the House floor Thursday, Small Business Committee Chairwoman Nydia M. On Thursday, CNBC reported that Ruth's Chris planned to repay its $20 million loan. On Monday, Shake Shack announced it was returning its $10 million PPP loan – the largest amount allowed under the program. Previously, all a business had to do was attest that "current economic uncertainty makes this loan request necessary to support ongoing operations," a vague standard that allowed large businesses like Shake Shack, Potbelly Sandwich Shop and Ruth’s Chris Steak House to secure millions in forgivable loans. The guidance goes on to say that "such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification." More: Confused by the federal government's small business loan program? You're not alone. It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith." The memo urges applicants to request money "in good faith, taking into account their current business activity and their ability to access other sources of liquidity. WASHINGTON – The Trump administration is making it tougher for large corporations, such as Shake Shack, to take advantage of federal loans meant for small businesses shuttered by the COVID-19 pandemic.Īfter numerous reports that Fortune 500 companies and other publicly traded firms were able to access the Paycheck Protection Program, the Treasury Department and Small Business Administration on Thursday issued guidance designed to prevent what critics call favored treatment for well-heeled corporations. Watch Video: Small business owners share struggle with receiving PPP loans
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |