Borrowers Beware: PPP Loans May Provide a Lifeline or Liability
2 Pages Posted: 21 May 2020
Date Written: May 18, 2020
The article is a review of the Paycheck Protection Program (“PPP”), an initiative under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The program was meant as a lifeline for small businesses by offering forgivable loans. However, recent reports have indicated that billions went to large public companies. In the article I examine the pitfalls of the program such as its ambiguous guidelines.
Keywords: paycheck protection program, CARES Act, coronavirus, vague, small business administration, coronavirus, federal aid, treasury, forgivable loan, corruption, compliance
JEL Classification: I18, M00, M21, M38, Z38, H5, H51, H53, H59, H6, H63, H75, H81, H84, H87,
Suggested Citation: Suggested Citation