(AmericanProsperity.com) – Many small businesses that applied for the Paycheck Protection Program (PPP) are still waiting to learn if they will get help or not. If this wasn’t bad enough, PPP funding was given to large companies that didn’t pay their taxes.
A total of 110 publicly-traded companies received a forgivable loan of at least $4 million and 46 of them did not pay any US corporate taxes in 2019. Of the 46 companies, 12 of them used offshore accounts to cut taxes, yet still received $104 million in loans from taxpayers. Seven companies did not pay taxes at all.
To date, the #PaycheckProtectionProgram has helped over 50 million American workers stay connected to their jobs and more than 4 million small businesses get much-needed relief.
— Jovita Carranza, SBA (@SBAJovita) May 28, 2020
To qualify for a low-interest PPP loan, a company must employ less than 500 people. If the business was affected by COVID-19, they could be eligible for up to $10 million in taxpayer-supported loans. On April 27, the law was revised so businesses could apply 60% towards salaries instead of 75% to be eligible for forgiveness.
According to the Small Business Administration (SBA), as of May 26, the average disbursement was $115,000. Businesses must certify the loans were necessary to support their business. While the companies didn’t pay taxes, all laws were followed and the unpaid taxes were legal. However, that may generate some controversy as Americans pay their taxes, while some businesses don’t and receive aid.
For information about the program, visit the SBA’s PPP website.
~Here’s to Your Prosperity!
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