SBA makes it easier for large borrowers to get PPP loans



The Small Business Administration (SBA) announced that it is lifting the loan eligibility check for Payroll Protection Program (PPP) loans of $ 2 million or more.

An ad is a 180-degree turn of the agency. In the early days of the pandemic, the SBA received widespread backlash for allowing publicly traded company receive PPP funds, while small and minority businesses were ignored.

In its announcement, the SBA added that it will soon publish an FAQ on the subject. Carmen Calzacorta, attorney for Schwabe, Williamson & Wyatt, said INC change is “saving time and money.”

Kalzacorta added that as a result of additional reviews, some requests for PPP loans have been moved from five months for decision to about eight months. During the audit, a significant amount of financial information was requested, including cash capital, gross revenues, a list of high-paid executives, and questions related to business and operations.

However, SBA financial information requests were added to prevent PPPs from publicly traded companies that did not need emergency funding. At the onset of the pandemic, many companies jumped at the opportunity to get funds they didn’t need, including Shake shack, the Los Angeles Lakers basketball team; and Ruth Chris Steakhouse. All three were forced to return the PPP funds.

PPP funds were taken not only by large enterprises. Several citizens took PPP funds and were accused of fraud, including in San Jose. resident who acquired shares in cryptocurrency and Tesla using PPP and Newark funds female who has been charged with electronic communications fraud, SBA fraud and money laundering

PPP issued more than 800 billion dollars in emergency funding since the start of the pandemic for more than eight million US small businesses, black PPP borrowers and small businesses received over $ 14 billion in PPP loans.

Despite the rule change, the SBA may still request additional financial information. According to Kalzacorta, audits of federal programs usually take years later, and companies must keep all the information they used to obtain a loan for six years.


Source link