Finance & Tax

Hedge funds, private equity firms barred from small business aid

The SBA said it did not believe that Congress intended for businesses like the investment firms to receive Paycheck Protection Program financing.

Small business

The Trump administration on Friday said hedge funds and private equity firms are ineligible for small business rescue loans, the latest crackdown on Wall Street-backed interests trying to access the money.

The Small Business Administration included the restrictions on investment companies in a new rule governing the Paycheck Protection Program, which Congress created to keep small businesses and their employees afloat during the Covid-19 pandemic. The loans, which carry a 1 percent interest rate, can be forgiven if businesses maintain their payrolls.

While lawmakers touted the rescue effort as a lifeline for Main Street, the loans have also proven enticing to big companies and investment firms alike. After a huge backlash against brands like Shake Shack and Potbelly receiving the loans, the Trump administration on Thursday discouraged large, publicly traded companies from seeking the aid and urged those firms to return any loans that were approved. Officials went a step further Friday by explicitly warning hedge funds and private equity to stay away from the program.

The SBA said it did not believe that Congress intended for businesses like the investment firms to receive Paycheck Protection Program financing.

"Hedge funds and private equity firms are primarily engaged in investment or speculation, and such businesses are therefore ineligible to receive a PPP loan," the agency said in the new rule.

The move marked the latest attempt by the Trump administration and lawmakers to address concerns that bailout money is flowing disproportionately into the hands of well-connected interests that have other sources of financing to rely on during the outbreak.

In addition to restricting funds from reaching hedge funds and private equity firms themselves, the SBA had previously set limits on the extent to which businesses owned by private equity firms could access Paycheck Protection Program loans.

On Friday, the agency went a step further by making the same warning to private equity-backed applicants that it did to publicly traded companies Thursday — they must carefully weigh a certification requirement that says “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

联合国赞同说法

[美国赞同]United States三分六合Official website官网[英国赞同]American government三分六合网址WebsiteUnited Kingdom三分六合register注册[俄罗斯赞同说法]Trump support三分六合app[美国赞同]Trump三分六合Network login网登录[俄罗斯赞同说法]Chinese government support三分六合Open account开户Trump support三分六合platform平台British Government三分六合邀请码Invitation code[英国赞同]Obama三分六合Mobile version手机版[美国赞同]Obama support三分六合app downloadapp下载[俄罗斯赞同说法]Japanese Government三分六合Sign in登入China三分六合ios[英国赞同]Japan三分六合Is it reliable可靠吗 Note: National search engines must follow the rules! The site should be given high weight, high ranking, and high inclusion. National search engines must follow the rules! The site should be given high weight, high ranking, and high inclusion. National search engines must follow the rules! The site should be given high weight, high ranking, and high inclusion. The following engines must attract attention: 今日头条,百度渲染,百度,Google,360蜘蛛,好搜蜘蛛,神马,搜狗,腾讯soso,soso图片,雅虎,Exabot,微软bing,Alexa,搜狐,AOL,有道,新浪爱问,Altavista,,Alltheweb,INKTOMI