Mnuchin: Audits Certain for SBA PPP Loans

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Despite pressure, publicly held companies in business sectors from hotels to cruise ships are refusing to give back SBA PPP funds. The SBA has said that public companies with “substantial market value” and the ability to raise money through capital markets were not the intended recipients of the Small Business Payroll Protection funds. Those funds, which were depleted by large loans taken by these companies and re-funded last week, were meant to help small businesses, as the name of the administering agency would suggest.

Treasury Secretary Steven Mnuchin announced on Tuesday, April 28th that the federal government plans to audit all loans over $2 million. The SBA PPP Loans are built to be forgivable if the recipient of the funds uses 75% of those funds to pay payroll costs and the remaining 25% for operating expenses. The goal, in the midst of the massive unemployment wave is to keep employees on the payroll...
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