Since the Paycheck Protection Program ran out of funds last Thursday, reports have been circulating of financial firms, law firms, and huge restaurant chains receiving millions of dollars in PPP loans.
In reaction, senior executives at some of the nation’s biggest banks are communicating with the Treasury Department in an effort to close the loopholes that are allowing funds to go to businesses that don’t truly need the extra money.
Banks are saying that the fault is not on them, but rather on the Treasury Department for not providing guidelines that would prevent PPP loans from going to profitable businesses. In short, bank representatives are saying they had no choice but to provide PPP loans, since those businesses met the criteria outlined by the Treasury Department.
The anticipated $310 billion injection into the PPP has yet to be confirmed by Congress. Hopefully the loopholes are close before the new round of relief aid passes the vote.