Treasury Department Asks Publicly-Traded Companies To Return Small Business Stimulus Loans After Backlash

ABC News reports:

The Treasury Department issued new guidance on Thursday encouraging publicly-traded companies to return their coronavirus stimulus loans by May 7 as Shake Shack and other public companies have faced backlash for receiving funds meant for small businesses.

While small business owners struggled to secure loans under the Paycheck Protection Program in the two weeks before the $350 billion fund ran dry, dozens of publicly traded companies secured hundreds of millions of dollars in funds, drawing criticism from watchdog groups and lawmakers.

In updated guidance on the implementation of the CARES Act, the Treasury Department and Small Business Administration said Thursday “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” attesting to its need for the loan.