Former Attorney General Jeff Sessions is calling for large companies to give back loans they received under the Paycheck Protection Program (PPP).
“[B]ig corporations are taking large sums meant for the little guy. Every one of them should return these loans immediately, and the Small Business Administration should ensure those funds go to struggling small businesses first,” said Sessions in a statement released Thursday morning.
Sessions joins a growing, bipartisan chorus of public officials decrying big businesses for taking money from a program intended to help small and medium-sized businesses stay afloat during the coronavirus pandemic.
The PPP was established as part of the $2.2 trillion federal stimulus bill, termed the CARES Act by its congressional sponsors.
The program was designed to help American companies with fewer than 500 employees.
Companies like Ruth’s Chris Steakhouse, Shake Shack and the Los Angeles Lakers have grabbed headlines across the nation by using advanced accounting methods to hoover-up as much cash as possible from the PPP.
Ruth’s Chris, Shake Shack and the Lakers have since returned the money after intense public pressure.
Treasury Secretary Steven Mnuchin on Tuesday said his department plans to audit all loans over $2 million, and threatened criminal action against any large company trying to take advantage of the system.
Sessions is proposing that the United States prioritize companies with fewer than 100 employees in an effort to balance out the program.
According to the former senator from Alabama, “the Small Business Administration needs to get serious about ensuring that those loans go directly to small businesses first, as intended.”
Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: [email protected] or on Twitter @HenryThornton95
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