Treasury Department officials are warning publicly traded companies to return any funds they have received under the Paycheck Protection Program (PPP) or face consequences. In a new round of guidelines that were issued Thursday, the administration announced public companies have until May 7th to repay their loans.
“Certain people on the PPP may have not been clear in understanding the certification,” Treasury Secretary Steven Mnuchin said. “So, we will give people the benefit of the doubt. We’re going put out a FAQ, explain the certification. If you pay back the loan right away, you won’t have liability to the SBA and to Treasury. But there are severe consequences for people who don’t test properly the certification.”
Employees speak out, saying the company took ‘an obscene amount,’ and the board votes to return funds to the government https://t.co/xHxHEtoWDR— Linda Hill (@bulldoghill) April 25, 2020
Nikola CEO Trevor Milton said that because the company is in the middle of a merger, it can’t access money from private or public markets. “We’re a small business, we’re one-fifth the size of what the SBA considers a small business.” https://t.co/T1ecUBXeGq— CNBC (@CNBC) April 25, 2020
An SBA rule change is letting in a new set of borrowers for the Paycheck Protection Program: bank shareholders and outside directors. https://t.co/yr4T4tqgoA— SA Business Journal (@SABizJournal) April 25, 2020