Changes to guidance in the small business loan program may give ammunition to critics who charge that the government is too lax in its oversight.
" and even criminal liability if they didn't really need the government money. Mnuchin's warning came at the height of an uproar last month over large companies using the PPP. Companies that could raise money elsewhere were given a deadline to return the funds.in a CNBC interview on April 28. "It's the borrowers who have criminal liability if they made this certification and it's not true.
"I don't see anybody being convicted for this, honestly," said Scott Pearson, a partner at Manatt, Phelps & Phillips. "What will scare people away is the threat of being accused. The suggestion there is criminal liability for a company that has a good argument that they were eligible for these loans based on the structure of the CARES Act is ludicrous."
"They're trying to use public shaming mechanisms to embarrass companies into giving money back that, technically, they're allowed to take under the program," said Axelrod, now a partner at law firm Linklaters.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed says around 600 smaller banks tapped PPP facility in its first daysAround 600 banks, most of them small community institutions, tapped the Federal Reserve's Paycheck Protection Program facility for about $30 billion of loans as of May 6, the U.S. central bank reported on Saturday in its first detailed disclosure under the new program.
Read more »
So You Finally Got Your PPP Money. Now What?As of now, this does not include payroll costs such as systems and vendors, however, the government alleges that there will be some more information coming out in mid-May which will address payroll costs but as of now, this is not covered; 25% can go towards other bills (see below for more details).
Read more »
SBA Releases Paycheck Protection Program Loan Forgiveness Application: A Deep DiveOn Friday, the SBA released an application for borrowers of a PPP loan to request forgiveness. How does it work?
Read more »
Italy PM says taking calculated risk in rolling back lockdownItalian Prime MInister Giuseppe Conte said on Saturday Italy was taking a calculated risk in rolling back lockdown measures from next week as the daily death toll from the COVID-19 pandemic fell to its lowest since March 9.
Read more »
Fed says around 600 smaller banks tapped PPP facility in its first daysAround 600 banks, most of them small community institutions, tapped the Federal Reserve's Paycheck Protection Program facility for about $30 billion of loans as of May 6, the U.S. central bank reported on Saturday in its first detailed disclosure under the new program.
Read more »
Magic Johnson Makes Another Assist—to the Small Business Aid ProgramEarvin “Magic” Johnson said his EquiTrust Life Insurance Co. will provide $100 million in capital to fund loans for minority-owned businesses through the Small Business Administration’s Paycheck Protection Program.
Read more »