Recipients included any business, nonprofit, veterans’ organization or tribal business with fewer than 500 employees (or, alternatively, the SBA’s size standard for number of employees for the industry in which they operated).The SBA waived its typical upfront loan guarantee fee, annual servicing fee and the no-credit-available-elsewhere requirement.The maximum term was initially 10 years (later reduced to two years), and the maximum interest rate was initially 4% (later reduced to 1%).Loans were forgiven if borrowers certified that the funds were used within a specified period for payroll, utilities, rent or mortgage payments and that certain employment targets were maintained. Small Business Administration (SBA) guarantee. Loans were uncollateralized, were nonrecourse (i.e., no other assets of the borrower were at risk), did not require a personal guarantee by the borrower and came with a 100% U.S.The CARES Act included the following key specifications regarding the program, as summarized by the Congressional Research Service: Appendix of Congressional Research Service, “COVID-19 Relief Assistance to Small Businesses: Issues and Policy Options,” Oct. Small Business Administration, “ Forgiveness Platform Lender Submission Metrics (PDF),” with data as of June 20, 2022. More than 90% of the nearly $800 billion of PPP loans were forgiven by June 20, 2022, making the program largely temporary as well. This was a remarkably timely response to the crisis. Background and Key PPP Loan SpecificationsĮstablished as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act-which was signed by President Donald Trump on March 27, 2020-the PPP began to distribute forgivable loans to small businesses on April 3, just three weeks after a national emergency was declared in the United States. Other crisis programs, including unemployment insurance and economic impact payments, were targeted much more successfully to wage earners. A Wall Street Journal report lists 103 public companies that got more than $380 million in PPP loans.The Paycheck Protection Program (PPP) directed hundreds of billions of dollars to small businesses and other organizations adversely affected by the COVID-19 crisis, providing resources to maintain payrolls, to hire back employees who may have been laid off and to cover important overhead.īut was this money well spent? A recent study offers evidence that the cost of each job saved was very high and that most of the program’s benefits flowed to small-business owners, their creditors and their suppliers rather than to workers. Overall, more than 100 public companies have received nearly $500 million in PPP funds, according to Footnoted, an information service focused on Securities and Exchange Commission filings. See: Here’s why big chains like Shake Shack got the coronavirus aid for small businessesĪnd read: Shake Shack says ‘confusing’ small-business loan program needs to change Operators of large restaurant and hotel chains were specifically given a green light to get Paycheck Protection Program loans in the $2.2 trillion aid package known as the CARES Act, which was signed into law by President Donald Trump last month after getting approved by the Republican-led Senate and Democratic-run House. , which on Monday said it was returning its $10 million PPP loan. , which has reported getting $20 million in PPP loans and burger chain Shake Shack Inc. , which has disclosed receiving $30 million in Paycheck Protection Program loans Ruth’s Chris Steak House parent Ruth’s Hospitality Group Inc. Not included in the bank’s chart are hotel REIT Ashford Hospitality Trust Inc. Here are 40 public companies that have received PPP loans.
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