Collectors Universe (read PSA)

[mantlefan]

The Payroll Protection Program (designed to provide forgivable loans to SMALL Businesses) was gutted by massive payouts to HUGE Fortune 500 companies. Unfortunately that was perfectly legal although it was contrary to the spirit of the law. The bigger banks like Chase made sure their biggest customers got millions while they ignored businesses like mine.

USA Today:

"Some big banks have been accused in lawsuits of giving priority to requests for larger loans that carry heftier fees and come from bigger small businesses that have deeper relationships with the bank and are more likely to purchase other products and services."

The bad press that was generated has prompted some companies like Shake Shack a($10 million) and Ruths Chris ($20 million) to return the funds.

USA Today:

"After numerous reports that Fortune 500 companies and other publicly traded firms were able to access the Paycheck Protection Program, the Treasury Department and Small Business Administration on Thursday issued guidance designed to prevent what critics call favored treatment for well-heeled corporations.:

This week's program states that a company should be prepared to demonstrate to SBA, upon request, the basis for its certification...namely that without the funds their company will be in serious financial difficulty.

USA Today:

"It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith."

Hopefully the second round of PPP will accomplish what the first one failed to do.

Stay tuned....