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“ ‘If somebody got something that we think is inappropriate, we’ll get it back. OK? Good — good point.’ ”
The line above came from President Donald Trump after a reporter asked about how a coronavirus aid program for small businesses has been helping big companies.
Banks have been making the Paycheck Protection Program loans, and “they’re supposed to do it according to not only criteria, but according to what we think is right,” Trump said, while speaking Monday night at the White House’s daily coronavirus briefing.
“I know one thing: I didn’t get any. That’s for sure,” the president said of the assistance. “We’ll look at individual things, and some people will have to return it if we think it’s inappropriate.”
Related:Schumer says coronavirus stimulus package won’t provide aid to Trump family’s businesses
Treasury Secretary Steven Mnuchin offered additional details at Tuesday night’s briefing on potential attempts to get money back, saying the “intent of this money was not for big public companies.”
“We’re going to put up very clear guidance so that people understand what the certification is, what it means if you’re a big company,” Mnuchin said. “To the extent these companies didn’t understand this and they repay loans, that will be OK, and if not there will be potentially other consequences.”
See:Here’s why big chains like Shake Shack got the coronavirus aid for small businesses
And read:Shake Shack says ‘confusing’ small-business loan program needs to change
Overall, at least 75 companies that have received PPP aid were publicly traded, even as the program is supposed to assist small businesses that typically have less access to quick cash and credit, said an Associated Press report. Information service Footnoted estimated that more than 100 public companies have gotten such aid.
Harvard University, which has a $40 billion endowment, also has drawn flak for getting separate coronavirus-related aid of $8.6 million. Trump said at Tuesday’s briefing that Harvard will repay the aid.
There have been concerns over the program being set up specifically so big restaurant and hotel chains can get PPP money. Shake Shack Inc. SHAK, +1.44% on Monday said it was returning its $10 million loan. Other big restaurant companies that have disclosed getting PPP aid include Ruth’s Hospitality Group Inc. RUTH, +1.32% , which received a $20 million loan, and Potbelly Corp. PBPB, -4.89% , which got a $10 million loan. Fiesta Restaurant Group Inc. FRGI, +1.99% subsidiary Texas Taco Cabana also received a $10 million loan.
The PPP initially received $350 billion last month in the $2.2 trillion aid package known as the CARES Act. The program ran out of money Thursday, and the Trump administration and congressional leaders on Tuesday reached a deal that would replenish it.
Mnuchin has stressed that 74% of PPP loans have been for less than $150,000, saying that demonstrated “the accessibility of this program to even the smallest of small businesses.”
