WASHINGTON (Reuters) – President Donald Trump on Wednesday said the U.S. government will go after any companies that did not deserve forgivable “PPP” loans and fail to return them by Thursday.
To keep small businesses from having to layoff workers as the coronavirus pandemic freezes the U.S. economy, the U.S. Congress created the Payroll Protection Program (PPP) that funnels loans through U.S. banks that are completely forgiven if borrowers continue to pay employees.
But as soon as the program, which has now had two rounds of funding, was launched, it was criticized for sending thousands of dollars to national chain restaurants and other major companies.
Recipients who did not take the money in good faith have until Thursday to return the money, Trump said.
(Reporting by Lisa Lambert and Steve Holland; Editing by Sandra Maler)
