The Treasury Department on Thursday followed up on its pledge to get money back from big public companies that received loans meant for small businesses hurt by the coronavirus crisis, with officials issuing guidance that gives the large enterprises a May 7 deadline to return the aid.
More than 100 publicly traded companies have received Paycheck Protection Program loans intended for small businesses, which reported widespread problems in getting the assistance. The program also quickly ran through its initial allocation of $350 billion but was on track to get replenished this week.
Read more:Here are the public companies that got coronavirus aid meant for small businesses
And see:As scores of public companies get small-business aid, Trump vows to take back money if help was ‘inappropriate’
In a guidance document issued on Thursday, the Treasury Department noted that PPP borrowers had to certify to the Small Business Administration that the current economic uncertainty made their loan request necessary to support ongoing operations.
“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 department’s guidance added.
via Treasury gives big public companies until May 7 to return loans meant for small businesses – MarketWatch