AP: Publicly traded firms get $300M in small-business loans
In this April 17, 2020, photo, Zachary Davis poses for a photo at The Penny Ice Creamery in Santa Cruz, Calif. An investigation by The Associated Press hows that many large companies which collectively received tens of millions of dollars in federal loans through the Paycheck Protection Program were at risk of failing even before the coronavirus walloped the economy, while others have acknowledged problems keeping their finances straight and a few have been under investigation by the Securities and Exchange Commission. That big companies and ones with questionable records received such precious financial aid during the chaotic last few weeks frustrates Davis, “We were feeling pretty good about where we were in the world. Now it’s just all turned upside down,” said Davis, who had to lay off 70 workers. (AP Photo/Martha Mendoza)
(AP) – An Associated Press investigation has found that a relief fund Congress created to protect small businesses amid the coronavirus crisis has helped companies with thousands of employees, past regulatory run-ins and risks of financial failure even before the economy got walloped.
The Paycheck Protection Program was supposed to help small businesses, which typically have less access to quick cash and credit.
Its $349 billion in emergency loans are intended to keep workers on the job and bills paid on time.
But the AP found 75 companies that collectively received $300 million were publicly traded, and some had market values well over $100 million.
