In statements made yesterday on "Squawk Box" on CNBC, Secretary Mnuchin said:
"I'm going to be putting out an announcement later this morning that for any loan over $2 million, the Small Business Administration will be doing a full review of that loan before there is loan forgiveness," and regarding the Los Angeles Lakers, the NBA's second-most valuable team, that took out a $4.6 million loan (which the team announced on Monday it had returned):
"I'm not a big fan of the fact that they took $4.6 million," Mnuchin said. "I think that's outrageous." Mnuchin added he "would have never expected in a million years that the Los Angeles Lakers" would take such a loan. He also said he was glad the team returned the money, "or they would have had liability."
These statements cast a further pall on PPP applicants already struggling to determine if they can make the required PPP application certifications1 regarding the need for the funds in light of recent SBA guidance.
Footnote
1 Discussed in our earlier COVID-19 blog postings on April 23, 2020 "Clear as Mud: SBA Offers Further Clarification to PPP Eligibility)" and April 28, 2020 "Still Clear as Mud (Unfortunately): SBA's Latest Official FAQ Fails to Provide Meaningful Guidance for Potential PPP Borrowers".
Originally published by Mayer Brown, April 2020
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