L.A. Lakers Criticized for Receiving Paycheck Protection Program Loan

Posted on May 1st, 2020 at 4:55 PM
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 FraudCompliance ProtectionBreach of Fiduciary DutyFINRA 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

Tags: eccleston, eccleston law, james eccleston, ppp, lakers

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

October 11, 2024
Macquarie Investment Management to Pay $79.8 Million for Overvalued CMOs and Unlawful Cross Trades

The U.S. Securities and Exchange Commission (SEC) has charged Macquarie Investment Management Business Trust (MIMBT) with overvaluing collateralized mortgage obligations (CMOs) and executing unlawful cross-trades that favored certain clients. 

October 10, 2024
Merrill Lynch and Harvest Volatility Management Fined $9.3 Million for Exceeding Client Investment Limits

According to SEC.gov, the Securities and Exchange Commission (SEC) has charged Merrill Lynch, Pierce, Fenner & Smith Inc., and Harvest Volatility Management LLC for exceeding clients’ designated investment limits, resulting in higher fees, increased market exposure, and financial losses. 

October 9, 2024
Charles Schwab Faces Lawsuit Over Failure to Prevent Elder Fraud in Computer Hack

A new lawsuit claims that Charles Schwab failed to protect an elderly client from a fraudulent scheme that drained her retirement savings.