Borrowers Beware: PPP Loans May Provide a Lifeline or Liability

2 Pages Posted: 21 May 2020

Date Written: May 18, 2020

Abstract

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

Block, Samantha, Borrowers Beware: PPP Loans May Provide a Lifeline or Liability (May 18, 2020). Available at SSRN: https://ssrn.com/abstract=3605986 or http://dx.doi.org/10.2139/ssrn.3605986

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