(AmericanProsperity.com) – On Tuesday morning, Treasury Secretary Steven Mnuchin said any company that received more than $2 million from the stimulus bill’s relief loan must undergo a “full review” before it’s forgiven. He stressed the small business relief program was not meant for public companies that have liquidity. If companies falsely certified themselves as a small business, they’d have “criminal liability” unless they paid back the loans in two weeks.
The government will now perform a full audit on any loans above $2 million from the small business relief program, Treasury Sec. Mnuchin says. The program received backlash after several public companies disclosed they had taken out loans. https://t.co/IEoLkeexY3 pic.twitter.com/W2zVK05UIU
— CNBC (@CNBC) April 28, 2020
At least 60 publicly-traded businesses have claimed loans intended for their smaller counterparts. In a CNBC interview, Mnuchin scolded Wall Street-backed companies that improperly received tens of millions of dollars. Shake Shack, Ruth’s Hospital Group, and other large corporations received forgivable loans. Even the Los Angeles Lakers basketball team applied for and received a $4.6 million, which Mnuchin said was “outrageous.” He blamed the problem on the companies who sought the loans, saying the banks which issued them were middlemen.
On Monday, the $320 billion loan program restarted after Congress authorized new funding last week. Mnuchin said the average loan size is approximately $206,000 before the first wave ended. Now, the current backlog average size is $100,000.
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