Mnuchin: Small Businesses Getting Large Loans Will Also Get Audited
Snags in the SBA's programs are ringing some alarm bells
On Tuesday, Treasury Secretary Steven Mnuchin told CNBC the government will audit any company taking out more than $2 million from the small business loan program.
The government program allows companies to have their loans forgiven, provided they spend the funds on payroll, benefits, rent and utilities. The Paycheck Protection Program (PPP) faced backlash after several public companies disclosed they had taken out the loans, which were intended to help small businesses with fewer than 500 employees weather the coronavirus (COVID-19) crisis.
“I’m going to be putting out an announcement later this morning that for any loan over $2 million, the Small Business Administration will be doing a full review of that loan before there is loan forgiveness,” Mnuchin said on “Squawk Box.”
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