PPP loan recipients weren’t prohibited from paying investors with other funds, as long as the PPP funds were kept separate. The issue of whether some undeserving businesses received PPP loans has arisen previously when it became known that scores of publicly traded companies received millions of dollars in loans, even though they had access to other sources of capital. The company also availed itself of a $1.7 million PPP loan to support 91 employees, according to SBA and SEC records. Feng said the PPP funds were walled off from other funds in a separate bank account and spent to pay employees. Crown Crafts, a Louisiana-based manufacturer of children’s products, received a $1.9 million PPP loan on April 19.

Source: Washington Post September 24, 2020 22:30 UTC