Publicly listed firms keep business loans

Published:

On: May 2020

According to the recently released data, numerous publicly listed firms that received emergency small-business assistance loans from the government of the United States held into them, persisting with a certification that they require the money.  Companies that should not have applied for small-business assistance loans as they had sufficient resources to receive by on their own had until 18th of May to return the money without facing any prohibitions. 

Those firms who have returned the money declared it with the help of regulatory filings, which are needed within 4 business days of an essential corporate event. Around 68 firms returned $435.8 million in small-business assistance loans, out of a total of 424 public organizations that were evaluated loans estimating $1.35 billion. Nearly, 76 public firms that gathered Paycheck Protection program loans and have not stated they will return them had sufficient cash and equivalent to unfold operating costs until at least the month of June. 

As per the analysis of the companies’ current earnings and information about those firms, nearly 22 gathered loans of nearly $ 2million. The loans were created under the Treasury and Small Business Administration-run Paycheck protection program, which was launched by Congress to help small businesses cope with economic downturn of the COVID-19 pandemic.