Mnuchin Rips Lakers, Fumes Over Public Companies Receiving Coronavirus Loans
The first round of PPP loans were distributed on a first-come, first-serve basis, not on a determination of which businesses might need them most, noted Joan Harrington, director of social sector ethics at Santa Clara (Calif.) University.
“Shouldn’t organizations consider the common good when making the decision about whether to apply for limited funds?” Harrington wrote in a blog post.
“Under the Paycheck Protection Program, applicants were provided with little guidance on who should apply other than the need to ‘support ongoing operations.’ Based on this language, many organizations legally qualified for loans,” she wrote, adding: “But in this unprecedented crisis, it is clear that the government will be unable to provide enough funds to address all of the need. This is the time that small businesses, both for profit and nonprofit, should be considering whether they can survive without government funds so that there will be enough for the neediest.”
Joan Harrington, director of Social Sector Ethics, quoted in Compliance Week.