U.S. to audit companies who take more than $2M from the small business loan program
UPDATED 10:06 AM PT — Tuesday, April 28, 2020
Treasury Secretary Steven Mnuchin has warned any company who accepts at least $2 million from the small business loan program will be audited.
Mnuchin made those remarks in an interview Tuesday. He said the decision is meant to help keep small businesses running, while holding big businesses who abuse the process accountable for their actions.
This came after several large companies were found taking out loans from the program. Some of them exploited a loophole to take out multiple loans at one time.
“Let me just be clear, the purpose of this program was not social welfare for big business,” said the Treasury secretary. “The purpose of this program is to help small business, it’s a small business program and it was meant for small businesses that didn’t have liquidity.”
In the initial round of Paycheck Protection Program funding, @SBAgov provided nearly $350 BILLION to more than 1.6 million small businesses, including 1 million with ten or fewer employees.
— Kayleigh McEnany (@PressSec) April 28, 2020
The Paycheck Protection Program is meant to aid companies with fewer than 500 employees. Secretary Mnuchin said the loans will be investigated before a company can be forgiven by the government.