Turns out, even though some companies chose to return the funds to assist small businesses, most won’t. Many of the public companies that received the funds are saying that they need the extra funds. So they will not be returning the funds.
Before you start to throw blame around, there is a bit more to consider. Companies that received the funds despite having enough public capital to survive are required to return the funds. They had up until May 18th to do so.
Sixty Eight companies in total returned over $400 Million in small business and PPP loans. This number accounts for almost half of the $1.65 Billion that was approved in small business relief loans. However, there are still up to 8 more public companies that were required to return their PPP loans.
However, both the Treasury Department and the 8 companies in question have declined to comment. Meaning that the public has no idea who the perpetrators are and what conclusion to come to.
Will these companies do the right thing and send back their PPP loans or will they just sit around and do nothing? Time will tell, but until there’s solid information, most likely they will continue to do nothing.
Let us know what you think about this in the comments below.