More than 80% of the publicly-traded companies that have received funds from the Paycheck Protection Program are sticking with the program, according to the market research firm FactSquared.
Last month, the Treasury Department provided guidance stating that companies that have access to other sources of capital should be excluded from the $670 billion program. Pressured by both the Treasury guidelines and public criticism, some firms, including such notables as Shake Shack, Auto Nation and the Los Angeles Lakers, have returned millions of dollars to the government. Others were given until May 18 to return their loans without risk of further scrutiny.
But it looks like hundreds of publicly-traded companies are hanging onto their loans, which can be converted to grants if participants meet certain requirements.
According to FactSquared’s review of 425 PPP loans made to public companies, just 68 had returned the money as of Tuesday. The returns total about $435 million out of the roughly $3.5 billion in loans provided to public companies. Treasury has said it will review all loans worth more than $2 million to ensure that recipients are truly in need.