There are new rules around the Paycheck Protection Program for corporations. They must now state that they need the loan. If they “knowingly” violate the rule they could face 30 years in prison and a $1,000,000 fine.
“Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business,” the guidance reads. “For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”
The other requirements are they must have fewer than 500 employees on staff and dedicate 75 percent of the relief toward payroll concerns.
Several large companies, including Shake Shack, Sweetgreen, and Ruth’s Chris Steak House, all obtained PPP loans under the first batch of funding which was not the intent of the loan. Shake Shack is definitely returning the money.
“The intent of this money was not for big public companies,” Treasury Secretary Steve Mnuchin told reporters gathered at the White House on Tuesday. “We’re going to put up very clear guidance so that people understand what the certification is, what it means if you’re a big company.”
How will the media and the Democrats make this into a negative for the president?
AOC HAS BEEN LYING
Rep. Alexandria Ocasio-Cortez, who knows so little about everything, went off the rails on the House floor. She falsely stated that President Trump is doing nothing to help small business.
Says @AOC: “It is a joke when Republicans say they have urgency around this bill. The only folks they have urgency around are folks like Ruth’s Chris steakhouse and Shake Shack.. If you had urgency you would legislate like rent was due on May 1.” pic.twitter.com/lA6VBkQqYo
— Michael McAuliff (@mmcauliff) April 23, 2020