A list of all companies which took PPP loans of $150,000 and above was disclosed on Monday by the Treasury Department and the Small Business Administration, after Democratic lawmakers demanded greater transparency surrounding the Paycheck Protection Program, according to CNBC.
The disclosure comes after Treasury Secretary Steven Mnuchin initially suggested in June that PPP borrowers might remain anonymous.
Those loans represent nearly three-fourths of total loan dollars approved, but a far smaller proportion of the number of actual loans. About 87% of the loans were for less than $150,000, according to the SBA.
The SBA released other details about the program Monday, including:
- It has approved 4.9 million loans for a total of more than $521 billion.
- The program has about $132 billion in funding left over
- The average loan is $107,000.
- Companies reported that the funding supported more than 51 million jobs. But the businesses reported the total when they applied for loans, and it is unclear how many of those employees stayed on payroll. –CNBC
Companies participating in the program who maintain most of their payroll throughout the duration of the loan may convert the funds to a grant. In June, Congress passed a bill which lower the bar for converting the loans – reducing the amount a company must spend on payroll, while giving recipients a longer period of time to use the funds.
On Saturday, President Trump signed a temporary extension of PPP into law, moving the application deadline from Aug. 8 to June 30 – a move which both chambers of Congress voted to approve last week.
And as we’ve noted several times, while the PPP was designed to help small businesses with under 500 employees get through the pandemic lockdown, larger – and in many cases public companies with other avenues for capital – took advantage of the program’s broadly written language to tap into capital which wasn’t meant for them.
According to the Financial Times, over 80 publicly listed companies tapped the program – perhaps the most high profile being Shake Shack, which sparked backlash after receiving $10 million in PPP funds through JPMorgan.
Ruth’s Chris Steak House owner, Ruth’s Hospitality Group, was another company which received harsh rebuke after taking out PPP funds.
A list of public companies that have reported receiving #PPPloan assistance
(via Morgan Stanley) pic.twitter.com/25Le6RnRqi
— Carl Quintanilla (@carlquintanilla) April 21, 2020
Ultimately, Ruth’s Chris, AutoNation and ShakeShack returned the money after public outcry – while over $30 billion in loans have been returned in total according to CNBC, citing anonymous senior administration officials.
On Thursday, Rep. Vicky Hartzler (R-MO) disclosed that her family’s business received nearly $480,000 from the program which was rolled out in April.
PPP in a nutshell pic.twitter.com/81DV2zUUBV
— StockCats (@StockCats) July 6, 2020
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