Big companies received PPP loans. Other companies returned the money while others were sued for not using it properly.

Big Companies
Pexels

The Paycheck Protection Program (PPP) is part of the CARES Act to provide small business resources they need to maintain their payroll. That means they can hire back their employees, and cover applicable overhead amid the global pandemic.

The U.S. Department of the Treasury has made it clear on its website about who qualifies for the program. Generally, this program is for small businesses with ten or fewer employees.

However, businesses such as the parents of the White House Press Secretary Kayleigh McEnany and other big companies received PPP money. Their company appears to employ over 131 people, according to a published report by Independent.

It can be remembered that McEnany criticized the program back in 2018. Early this year, the White House Press Secretary said that the loans are for small business owners.

During an interview from a news outlet with McEnany, she said that around 1 to 1.6 million loans went out to companies with ten or fewer employees. She also added that it is what the program is for and who the program is helping.

However, it is contrary to what is happening today. Businesses owned by McEnany's parents that employ over 131 people have received the money. There are other big companies as well who received PPP loans.

Some of those who received the money are members of the Congress, billionaires, and executive branch officials' family members. This now deprived small business owners who are the primary recipients of the program.

Despite that aim of the program, this has drawn criticisms from the government's watchdogs or reporters due to its lack of transparency.

It can be remembered that Treasure Secretary Steve Mnuchin told the Senate in June that the administration would not reveal as to which companies received the PPP loan. Meanwhile, McEnany refused to answer questions from reporters about the lack of transparency.

"We're concerned with getting money to people right now. I mean look, we're not concerned with cobbling a list together to please the media," McEnany said.

However, it is important to note that it is the government agencies' basic function to compile lists of recipients of federal funds for the purpose of transparency.

Typically, reporters ask for these lists to ensure people that the federal government is using the taxpayer fund in ethical ways.

Questions about lack of transparency also come after Shake Shack Chairman returned $10 million PPP funding earlier this year after they received capital from a different source.

In an open letter written by the company's two highest officials, Chairman Danny Meyer and CEO Randy Garutti, they said that applying PPP loan was broad enough that it allows big corporations like theirs to access the money that is intended for small businesses.

They described the application process as having no user manual and extremely confusing. Other big corporations received the money and did not use it on how it is designed for.

Recently, a lawsuit was filed against the CEO of The Starboard Group that owns 100 stores. The CEO spent the $1 million PPP loan to buy a new house in Montana.

Check this out!