Will large businesses voluntarily give back PPP loans?
FOX Business’ Charlie Gasparino says Treasury Secretary Steven Mnuchin reportedly asked JPMorgan Chase CEO Jamie Dimon on ways to fix the Paycheck Protection Program so loans can be distributed to needy small businesses.
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More than four-fifths of publicly listed companies that received emergency small business loans from the U.S. government have held onto them, sticking with a certification that they need the money, according to data from market research firm FactSquared.
Companies that should not have applied for the loans because they had enough resources to get by on their own had until May 18 to return the money without facing any sanctions. Those that returned the money announced it through regulatory filings, which are required within four business days of a major corporate event.
Sixty-eight companies returned $435.8 million in loans, out of a total of 424 public companies that were granted loans totaling $1.35 billion, based on a review of corporate filings by FactSquared as of May 22.
SMALL BUSINESS RESCUE PROGRAM STILL GRANTING BIG LOANS DESPITE EARLIER SCRUTINY
Some 76 public companies that took PPP loans and have not said they will return them had enough cash and cash equivalents to cover operating costs until at least June, according to a Reuters analysis, which was based on companies’ most recent earnings and companies tracked by FactSquared. Of those companies, 22 received loans of at least $2 million.