The Trump administration limited to $20 million the value of loans that corporate groups can get from a popular coronavirus relief program after outrage over reports that large companies and brand-name chains got funds.
TheSmall Business Administration andTreasury Department issued anew rule on Thursday for thePaycheck Protection Program, which was intended for small businesses to get loans of up to $10 million that convert to grants a company uses the proceeds to keep workers employed.
The new rule says that corporate groups shouldn’t get more than $20 million in total loans, which applies if businesses are “majority owned, directly or indirectly, by a common parent.” The limit is effective immediately for any loan not yet fully disbursed as of Thursday, the agencies said.
It’s the latest change to constantly shifting rules governing the PPP program, which have frustrated banks and business owners alike — in particular after a loopholeallowed big restaurant chains and hotel groups, among other large companies, to rake in millions in low-interest loans while mom and pop shops couldn’t access the program.
27,327 in U.S.Most new cases today
-14% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.136 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-0.5% Global GDP Tracker (annualized), March