A list of all companies that have taken PPP loans of US $ 150,000 and above was unveiled on Monday by the Treasury and Small Business Administration after Democratic lawmakers demanded greater transparency regarding the Wage Protection Program, according to CNBC,
Disclosure occurs after Treasury Secretary Stephen Mnuchin initially proposed in June that PPP borrowers may remain anonymous.
These loans make up almost three quarters of the total approved loan dollars, but a much smaller fraction of the number of real loans. According to SBA, about 87% of loans were issued for less than $ 150,000.
On Monday, the SBA published other program details, including:
- He approved 4.9 million loans totaling more than $ 521 billion.
- The program has about 132 billion dollars of funding left
- The average loan is $ 107,000.
- Companies said that funding supported over 51 million jobs. But enterprises reported the total when they applied for loans, and it is unclear how many of these employees remained on wages. –CNBC
Companies participating in the program that retain most of their salaries throughout the loan term can convert funds into a grant, In June, Congress passed a bill that lowered the credit conversion rate – by reducing the amount that the company should spend on salary payments and giving recipients a longer period of time to use the funds.
On Saturday, President Trump signed a temporary extension of the PPP law, postponing the application deadline from August 8 to June 30 – a step that both houses of Congress voted in favor of approval last week.
AND as we noted several times, while PPP was designed to help small businesses with fewer than 500 employees cope with the pandemic, larger, and in many cases publicly traded companies with other capital opportunities, took advantage of the widely written language of the program to capitalize on capital that was not intended for them.
According to Financial times, more than 80 public companies participated in the program – perhaps the loudest creature Shake shack, which caused a negative reaction after receiving $ 10 million in PPP funds through JPMorgan.
The owner of Chris Steakhouse Ruth, Ruth’s Hospitality Group, was another company that received a sharp rebuke after receiving PPP funds.
List of public companies that reported receipt #PPPloan help
(via Morgan Stanley) pic.twitter.com/25Le6RnRqi
– Carl Quintanilla (@carlquintanilla) April 21, 2020
Ultimately, Chris, AutoNation, and ShakeShack Ruth returned the money after a public protest – while a total of more than $ 30 billion in loans were returned CNBCwith reference to anonymous senior administration officials.
Rep. Vicky Harzler (R-MO) said Thursday that her family’s business received about $ 480,000 from a program launched in April.
PPP in a nutshell pic.twitter.com/81DV2zUUBV
– StockCats (@StockCats) July 6, 2020