Only 13 Public Companies Will Return PPP Money
May 1, 2020—At least 220 public companies applied for a combined $870 million from the Paycheck Protection Program (PPP) and so far, only 13 companies have returned the money, reported the Observer. The numbers come from a report from the Washington D.C.-based data analytics firm FactSquared.
The Paycheck Protection Program is a $350 billion rescue package under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the report, in theory, the PPP has a $10 million limit to each loan applicant. But some borrowers were able to well exceed that cap by filing multiple applications across subsidiaries as long as each operates as a separate legal entity and employs fewer than 500 people.
Last Thursday, the Small Business Administration issued guidelines urging companies that received the loans to give the money back. Under the pressure, the 13 companies have returned approximately $98 million.
Buddy Carter, Republican Congressman, shared further advice for repairers in a recent Automotive Service Association webinar on how to capitalize on coronavirus-related loan options.