Under the CARES Act, the U.S. Treasury and Small Business Administration established the Paycheck Protection Program, a forgivable loan program for small businesses.  While public companies were eligible to participate, on April 23, 2020, the U.S. Treasury published new guidance suggesting public company participants who could not demonstrate sufficient need could be subject to scrutiny unless they return the funds. We previously wrote about a framework for borrowers to analyze their certification risks.

Most public company recipients of Paycheck Protection Program loans have elected not to return the funds.  Based on a review of SEC filings and published SBA data, this post on Bryan Cave Leighton Paisner’s banking blog, BankBCLP.com, analyzes the statistics to see who returned Paycheck Protection Program loans.  Among the findings, 88% of public borrowers that received PPP loans elected to retain their PPP proceeds and 75% of borrowers approved for PPP loans of between $5 and $10 million did the same.

Read more here.