The execution of PPP was poor. A set of well-defined terms provided by Treasury to the SBA and subsequently to the lending financial institutions could have avoided unintended consequences such as various private equity firms, asset managers, law firms and the like “borrowing” money (we use quotation marks as PPP recipients are not required to pay back funds received). PPP is of course debt-financed and the debt will be monetized by the Federal Reserve.
Below we include a partial list of companies – inclusive of our comments – that are questionable in terms of whether the organizations truly required the capital to survive (“No”, many did not). We sorted the PDF file in descending order from largest loan tranche ($5-10 million) to the smallest ($150-350 thousand).
This is a partial list of 70 borrowers: Click HERE to access the file.
See our note from earlier this week which provides the full list of borrowers as provided by Treasury.