In response to the revelation yesterday that the Los Angeles Lakers were able to secure a PPP small business loan, Treasury Secretary Steven Mnuchin announced on CNBC that there will be an audit of every loan made over $2 million:
After criticizing the Lakers for taking a loan designed to help small businesses, Mnuchin says there will be audits of every one over $2 mil. "The SBA will be doing a full review of that loan before there is forgiveness" to "make sure the intent for taxpayers is fulfilled here.”
— Kaitlan Collins (@kaitlancollins) April 28, 2020
And he reminded companies that took taxpayer money of their potential criminal liablity if the certification of economic need was not true:
Secty Mnuchin on @CNBC on PPP loans to big companies: "It's the borrowers who have criminal liability if they made this certification (of economic need) and it's not true…We're going to do a full audit of every loan over $2m. This was a program designed for small businesses."
— Steve Liesman (@steveliesman) April 28, 2020
This is welcome news and 100% spot on:
"The purpose of this program was not social welfare for big business," says Treasury Secretary Steven Mnuchin. "This was meant for small businesses that didn't have liquidity." pic.twitter.com/17LbhcPewv
— Squawk Box (@SquawkCNBC) April 28, 2020
Some companies have already returned their funds:
.@stevenmnuchin1 sez on @CNBC that @USTreasury will review/audit any #PPPLoan above $2 million. A big criticism of the Paycheck Protection Program has been that large biz/organizations such as @shakeshack, @RuthsChris & @Lakers got loans. All 3 are returning the money.
— Ledyard King (@LedgeKing) April 28, 2020
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Mnuchin blamed the borrowers, not the banks for the loans:
“I blame the borrowers,” Mnuchin tells @SquawkCNBC , when asked who is responsible for big companies getting PPP loans. He said “the rules were clear.” Companies and the LA Lakers say the opposite. pic.twitter.com/Nths4szPim
— Robert Frank (@robtfrank) April 28, 2020
In what world did someone at the Lakers think they could take a taxpayer bailout?
"I never expected in a million years that the @Lakers–which I'm a big fan of the team–but I'm not a big fan of the fact that they took a $4.6M loan. I think that's outrageous, and I'm glad they returned it or they would have had liability," says @stevenmnuchin1 pic.twitter.com/igJBmFVKcB
— Squawk Box (@SquawkCNBC) April 28, 2020
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