Mid Penn Bank closes $470M in small business loans

Mid Penn Bank closes $470M in small business loans

The question reads: "Do businesses owned by large companies with adequate sources of liquidity to support the business's ongoing operations qualify for a PPP loan?" The House is expected to vote on the measure this week.

Treasury Secretary Steven T. Mnuchin said earlier in the week that more than a million companies with fewer than 10 employees have gotten loans, but that he was pleased to see Shake Shack announce it would return the money.

The Federal Home Loan banks will begin accepting loans made through the Small Business Administration's Paycheck Protection Program as collateral when making advances to their members, the Federal Housing Finance Agency said Thursday.

Public companies combined are set to receive at least $243 million in PPP loans, according to research from Morgan Stanley.

The PPP offers loans of as much as $10 million that convert to grants if proceeds are used to keep workers on the payroll and cover rent and other approved expenses for about two months, a stopgap created to help businesses get by until the economy reopens.

The $350 billion for the Paycheck Protection Program that was part of a coronavirus rescue package Congress passed last month quickly ran dry.

The bill also includes $75 billion in hospital aid and $25 billion for testing efforts.

The Small Business Administration (SBA), which administers the government-backed loans, must retool its online loan application system, which experienced repeated problems and outages over the two weeks the plan operated, to accommodate PPP changes that the administration and Congress approved.

An SBA official refused to provide a timeline for the new funds to be released, but noted that the foundation of the program is already up and running, apparently meaning that a change would happen fairly seamlessly.

But, in a quirk in the way the law was written, individual franchises of major national companies with thousands of workers throughout the country were able to tap into the fund, angering lawmakers who had approved the legislation thinking they were only helping small businesses.

The fast-casual chain joins others, including Kura Sushi USA and Shake Shack, that have returned the federal loans amid criticism over how the funds were distributed.

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