Newsletter: June 2020 – Convenience Fees

The Paycheck Protection Program was created to help businesses stay above water. The program was directed mainly towards small business to help small business owners keep their doors open through the COVID-19 pandemic. However, while small businesses, also referred to as mom-and-pop shops, were struggling to make ends meet, public companies were borrowing millions of dollars from the program leaving the small business shut out of any of the programs benefits and opportunities.

A deadline was implemented by the Small Business Administration to pay back these loans. Public companies have shares and capital market access which is considered cash value for their businesses. Which makes it unlikely that they would be able to meet the certification guidelines set forth for the PPP program. They are certifying that they can not get funds from any other source.

Hundreds of millions of dollars have been returned by public companies by returning the monies they were given by the Paycheck Protection Program. However, there are still many companies that will never return the money. Audits will be looming for any $2 million and over loans to help thwart the public companies from taking advantage during the next round of the loan funds. Large corporations that claimed money that should not have could face serious repercussions if they do not return funds that were given to them.