L.A. Lakers Criticized for Receiving Paycheck Protection Program Loan
From the Desk of Jim Eccleston at Eccleston Law LLC:
The Los Angeles Lakers are the latest company to receive public backlash for receiving money from the Paycheck Protection Program (“PPP”). The Lakers have since announced that they will return the $4.6 million they received from the PPP. According to Forbes, the Lakers franchise is valued at $4.4 billion.
The PPP is supposed to provide forgivable loans to small businesses. However, the Lakers join a growing list of large companies who received money from the PPP, including Shake Shack, Ruth’s Chris Steak House, and Potbelly. All three of those companies later returned the money after receiving criticism. The mere fact that these companies were able to secure loans from the PPP, meant to help small businesses, has raised concerns about the PPP itself.
In an effort to help clarify the program requirements, the Small Business Administration introduced guidance for participation in the PPP. According to this guidance, “borrowers still must certify in good faith that their PPP loan request is necessary.” The borrower’s certification that the loan request is necessary must take into account the borrower’s “current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.”
Many small businesses were not able to receive a PPP loan because of those funds went to large companies instead. Eccleston Law is investigating claims by small business owners who were not able to receive PPP loans. Business owners should contact the professionals at Eccleston Law to discuss their options.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Related Attorneys: James J. Eccleston
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