The uproar over wealthy companies and institutions receiving stimulus money rages on with another one reversing course today. Tuesday, Donald Trump mistakenly said Harvard University took money from the Small Business Administration (SBA). While that wasn’t accurate, the world-renowned school with a multi-billion dollar endowment, was planning to accept money from another emergency relief fund. Even though the president said they would be returning the money, university officials initially said they would still be using the funds, but today there was a change of heart.
Meanwhile, we haven’t confirmed whether any other big companies sitting on capital are following in Harvard or Shake Shack’s lead. The pressure was amped up on Tuesday when Treasury Secretary Steven Mnuchin said there would be “severe consequences“ for businesses that didn’t understand the true purpose of the loans.
The Wall Street Journal is reporting that Dallas hotel owner Monty Bennett is the biggest beneficiary of the coronavirus loan program receiving almost $46 million dollars total. The second biggest SBA loan reportedly went to Ruth’s Chris. We reached out to the restaurant chain to ask if they had plans to give the money back and were told their public relations firm is “not working with Ruth’s Chris regarding the PPP loan.”
Now more politicians are calling for investigations into PPP loans. The Detroit News reports on a letter Senator Gary Peters (D-MI) sent to the U.S. Government Accountability Office.
“As small businesses in Michigan and across the country continue to face dire financial challenges, I am concerned that PPP loans may not have gone to those who need them most,” Peters wrote.
“As part of this ongoing oversight, I ask that you review the PPP, including funds provided under the CARES Act and any subsequent legislation.”
Senator Rick Scott (R-FL) also point out that banks shouldn’t be favoring their biggest clients, but instead giving out loans on a first-come, first-serve basis.
