'Small-Business Loan Deadline Poses Test for Mnuchin' diff viewer (2/3)

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Small-Business Loan Deadline Poses Test for Mnuchin	Small-Business Loan Deadline Poses Test for Mnuchin
2020-05-14 01:48:13 UTC	2020-06-03 14:24:28 UTC (21 days later)
WASHINGTON — When big businesses like Shake Shack and the Los Angeles Lakers basketball franchise took millions of dollars’ worth of emergency loans intended for small businesses, Treasury Secretary Steven Mnuchin called such borrowing “outrageous,” narrowed eligibility and threatened to hold companies criminally liable if they did not give the money back.	WASHINGTON — When big businesses like Shake Shack and the Los Angeles Lakers basketball franchise took millions of dollars’ worth of emergency loans intended for small businesses, Treasury Secretary Steven Mnuchin called such borrowing “outrageous,” narrowed eligibility and threatened to hold companies criminally liable if they did not give the money back.
But in the last month, large companies have continued to take out big loans through the Paycheck Protection Program, including publicly traded firms with ready access to other forms of capital.	But in the last month, large companies have continued to take out big loans through the Paycheck Protection Program, including publicly traded firms with ready access to other forms of capital.
That is posing a critical test for Mr. Mnuchin, who had set a Thursday deadline for firms that did not need the money or had other ways of obtaining capital to return their loans or face a government review and potential legal repercussions. Mr. Mnuchin’s threat is likely to set off a wave of new government audits and legal fights over who is entitled to money that was meant to keep small businesses afloat during the pandemic. Late on Wednesday, the Treasury extended the deadline, for a second time, to May 18.	That is posing a critical test for Mr. Mnuchin, who had set a Thursday deadline for firms that did not need the money or had other ways of obtaining capital to return their loans or face a government review and potential legal repercussions. Mr. Mnuchin’s threat is likely to set off a wave of new government audits and legal fights over who is entitled to money that was meant to keep small businesses afloat during the pandemic. Late on Wednesday, the Treasury extended the deadline, for a second time, to May 18.
“I’ve spent the better part of the last two weeks talking with clients about whether or not to return the funds,” said Paul J. Pollock, a lawyer at Crowell & Moring who has been advising about 100 companies on their loans. “Suddenly everybody needed to re-evaluate whether they met the eligibility requirements.”	“I’ve spent the better part of the last two weeks talking with clients about whether or not to return the funds,” said Paul J. Pollock, a lawyer at Crowell & Moring who has been advising about 100 companies on their loans. “Suddenly everybody needed to re-evaluate whether they met the eligibility requirements.”
That decision has been complicated by a series of rule changes enacted by the Treasury Department in the weeks since the program began. The new guidelines are intended to make it harder for big companies to qualify for loans but have been criticized for cutting off funds to companies that need money and have no other government help available to them.	That decision has been complicated by a series of rule changes enacted by the Treasury Department in the weeks since the program began. The new guidelines are intended to make it harder for big companies to qualify for loans but have been criticized for cutting off funds to companies that need money and have no other government help available to them.
In another last-minute twist on Wednesday, the Treasury said that loans for less than $2 million would be assumed to have been taken in “good faith,” relieving pressure on the millions of companies that received smaller loans. But it does nothing for the thousands of other firms that were approved for loans worth more than $2 million and claim they both qualified for and need the money.	In another last-minute twist on Wednesday, the Treasury said that loans for less than $2 million would be assumed to have been taken in “good faith,” relieving pressure on the millions of companies that received smaller loans. But it does nothing for the thousands of other firms that were approved for loans worth more than $2 million and claim they both qualified for and need the money.
Many companies have opted to risk Mr. Mnuchin’s scrutiny. In recent weeks, companies including the ONE Group Hospitality, Calumet Specialty Products Partners and XpresSpa have taken out millions of dollars’ worth of Paycheck Protection Program loans. Some of those firms have disclosed to investors that they have other available sources of credit, seemingly violating a requirement that Mr. Mnuchin tucked into the program’s guidelines late last month dictating that firms should not apply for funds if they were not in dire need of cash.	Many companies have opted to risk Mr. Mnuchin’s scrutiny. In recent weeks, companies including the ONE Group Hospitality, Calumet Specialty Products Partners and XpresSpa have taken out millions of dollars’ worth of Paycheck Protection Program loans. Some of those firms have disclosed to investors that they have other available sources of credit, seemingly violating a requirement that Mr. Mnuchin tucked into the program’s guidelines late last month dictating that firms should not apply for funds if they were not in dire need of cash.
The small-business lending program is the centerpiece of the $2 trillion economic relief effort to cushion the blow to businesses that were shuttered because of the coronavirus pandemic. The rollout of the program has been marred by complicated restrictions that have changed on the fly, leaving borrowers fearful that loans they assumed would be forgiven will actually leave them saddled with debt.	The small-business lending program is the centerpiece of the $2 trillion economic relief effort to cushion the blow to businesses that were shuttered because of the coronavirus pandemic. The rollout of the program has been marred by complicated restrictions that have changed on the fly, leaving borrowers fearful that loans they assumed would be forgiven will actually leave them saddled with debt.
The program has also become a political vulnerability for President Trump, as big-name corporations received funds while smaller mom-and-pop shops missed out. This week, former Vice President Joseph R. Biden Jr. said that if he is elected he will “review every single stimulus loan given to big companies and political insiders.”	The program has also become a political vulnerability for President Trump, as big-name corporations received funds while smaller mom-and-pop shops missed out. This week, former Vice President Joseph R. Biden Jr. said that if he is elected he will “review every single stimulus loan given to big companies and political insiders.”
That has put pressure on Mr. Mnuchin, who oversees the program, which is run by the Small Business Administration which has been racing to fix technology glitches and issue new rules to make the program more equitable. Mr. Trump has publicly praised the program, but some of his economic advisers have complained that Mr. Mnuchin overpromised and failed to deliver on the lifeline for small businesses. In a sign of the political importance of the program, Mr. Mnuchin recently dispatched his deputy, Justin Muzinich, to the Small Business Administration to ensure that things run more smoothly.	That has put pressure on Mr. Mnuchin, who oversees the program, which is run by the Small Business Administration which has been racing to fix technology glitches and issue new rules to make the program more equitable. Mr. Trump has publicly praised the program, but some of his economic advisers have complained that Mr. Mnuchin overpromised and failed to deliver on the lifeline for small businesses. In a sign of the political importance of the program, Mr. Mnuchin recently dispatched his deputy, Justin Muzinich, to the Small Business Administration to ensure that things run more smoothly.
While the complex web of requirements and the crush of bad publicity appear to have slowed demand for the loans, many big companies have continued to hold onto the money.	While the complex web of requirements and the crush of bad publicity appear to have slowed demand for the loans, many big companies have continued to hold onto the money.
A manufacturer of hydrocarbon products, Calumet Specialty Products Partners, received $31.4 million in funds through the program on May 1, according to a securities filing. While some of the loans were secured before the new guidance, the company acknowledged that if it were found to have violated the new rules it could face “significant civil, criminal and administrative penalties.”	A manufacturer of hydrocarbon products, Calumet Specialty Products Partners, received $31.4 million in funds through the program on May 1, according to a securities filing. While some of the loans were secured before the new guidance, the company acknowledged that if it were found to have violated the new rules it could face “significant civil, criminal and administrative penalties.”
XpresSpa Group, which runs airport spas and is hoping to repurpose its infrastructure for coronavirus testing, said on April 6 that it expected to raise roughly $3 million in a stock sale. On May 1, it obtained a $5.7 million P.P.P. loan through Bank of America	XpresSpa Group, which runs airport spas and is hoping to repurpose its infrastructure for coronavirus testing, said on April 6 that it expected to raise roughly $3 million in a stock sale. On May 1, it obtained a $5.7 million P.P.P. loan through Bank of America
The ONE Group Hospitality, operator of the glossy STK steakhouses, obtained $9.8 million in loans through the program on May 4, according to securities filings. The company said that it could not obtain new capital and “has restrictions under its existing credit facility that limit its ability to borrow, raise equity or take on additional debt.”	The ONE Group Hospitality, operator of the glossy STK steakhouses, obtained $9.8 million in loans through the program on May 4, according to securities filings. The company said that it could not obtain new capital and “has restrictions under its existing credit facility that limit its ability to borrow, raise equity or take on additional debt.”
Other restaurant groups continued applying for loans even as high-profile industry players like Shake Shack returned their funds from the program’s first round, often saying that they are unable to access capital elsewhere.	Other restaurant groups continued applying for loans even as high-profile industry players like Shake Shack returned their funds from the program’s first round, often saying that they are unable to access capital elsewhere.
Ark Restaurants, which owns a number of upscale restaurants including the Bryant Park Grill in New York and Sequoia in Washington, D.C., received a $9.4 million loan. Its chief executive, Michael Weinstein, said that many of its restaurants could not yet reopen and that it was not able to sell more stock or take out additional private loans.	Ark Restaurants, which owns a number of upscale restaurants including the Bryant Park Grill in New York and Sequoia in Washington, D.C., received a $9.4 million loan. Its chief executive, Michael Weinstein, said that many of its restaurants could not yet reopen and that it was not able to sell more stock or take out additional private loans.
“Everyone thinks we’re making fortunes and we have access to capital,” he said. “It couldn’t be further from the truth.	“Everyone thinks we’re making fortunes and we have access to capital,” he said. “It couldn’t be further from the truth.
Jeff Crivello, the chief executive of BBQ Holdings, which owns the Famous Dave’s chain, said that it was able to “certify with a high level of confidence that we meet the requirements” of the $13 million in loans obtained through its subsidiaries.	Jeff Crivello, the chief executive of BBQ Holdings, which owns the Famous Dave’s chain, said that it was able to “certify with a high level of confidence that we meet the requirements” of the $13 million in loans obtained through its subsidiaries.
Last Friday, a group of lawmakers including Representative Jim Clyburn, the South Carolina Democrat who chairs the Select Subcommittee on the Coronavirus Crisis, demanded that five public companies return their loans. One, MiMedx Group, quickly did so; a spokeswoman said that the repayment had been planned before Mr. Clyburn sent a letter.	Last Friday, a group of lawmakers including Representative Jim Clyburn, the South Carolina Democrat who chairs the Select Subcommittee on the Coronavirus Crisis, demanded that five public companies return their loans. One, MiMedx Group, quickly did so; a spokeswoman said that the repayment had been planned before Mr. Clyburn sent a letter.
Two others indicated that they planned to keep the funds.	Two others indicated that they planned to keep the funds.
EVO Transportation and Energy Services said that it tried and failed to access new capital in March and that its investors were not able to sell their shares.	EVO Transportation and Energy Services said that it tried and failed to access new capital in March and that its investors were not able to sell their shares.
	Updated June 2, 2020
	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
	More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
“EVO has and will continue to use the P.P.P. proceeds for payroll,” the company said.	“EVO has and will continue to use the P.P.P. proceeds for payroll,” the company said.
A spokesman for Quantum Corporation, another publicly traded recipient mentioned by Mr. Clyburn, said that it would “demonstrate why Quantum not only falls within the technical eligibility requirements of the P.P.P. loan program, but also falls squarely within the spirit of what was intended by the CARES Act.”	A spokesman for Quantum Corporation, another publicly traded recipient mentioned by Mr. Clyburn, said that it would “demonstrate why Quantum not only falls within the technical eligibility requirements of the P.P.P. loan program, but also falls squarely within the spirit of what was intended by the CARES Act.”
The Treasury has been the subject of intense lobbying for changes to the program. Mr. Mnuchin believes his hands are largely tied by the intent of Congress to ensure that most of the money is directed toward keeping workers on payrolls. But he raised hopes this week in a CNBC interview that there could be adjustments to give the restaurant industry more flexibility over how and when restaurants spend the loan money.	The Treasury has been the subject of intense lobbying for changes to the program. Mr. Mnuchin believes his hands are largely tied by the intent of Congress to ensure that most of the money is directed toward keeping workers on payrolls. But he raised hopes this week in a CNBC interview that there could be adjustments to give the restaurant industry more flexibility over how and when restaurants spend the loan money.
“Many restaurants have just been sitting on their loans,” said Sean Kennedy, a spokesman for the National Restaurant Association.	“Many restaurants have just been sitting on their loans,” said Sean Kennedy, a spokesman for the National Restaurant Association.
Mr. Mnuchin is also under pressure from lawmakers to use his regulatory power to make lenders prioritize underserved borrowers such as women and minorities. A report by the Small Business Administration’s inspector general said those borrowers were getting insufficient access to loans.	Mr. Mnuchin is also under pressure from lawmakers to use his regulatory power to make lenders prioritize underserved borrowers such as women and minorities. A report by the Small Business Administration’s inspector general said those borrowers were getting insufficient access to loans.