A criminal past means no Paycheck Protection Program loan – By Khristopher J. Brooks (Moneywatch) / April 21 2020
Some small business owners have assailed the Paycheck Protection Program, saying they were unfairly shut out of the federal loan initiative that is aimed at saving jobs as the coronavirus pounds the economy. Yet another group of entrepreneurs faces an even greater barrier to making use of the emergency lending program: small business owners with past criminal convictions.
The PPP, one of the first sources of government aid Congress passed in response to the pandemic, offers businesses forgivable, low-interest loans on condition that they keep workers on the payroll. But the program excludes businesses if the applicant has 20% or more ownership of the company and if that applicant:
- is in jail
- on probation
- on parole
- is under indictment
- will soon be arraigned
- pleaded guilty or no contest or was convicted of a felony in the past five years
The rules barred Quan Huynh from applying for a small business loan. The Anaheim, California, resident was paroled in 2015 after serving prison time for a murder charge. The year after his release, Huynh started a janitorial service that now has seven employees. He was forced to lay them off earlier this month when the state’s shutdown mandate disrupted his business, but had intended to re-hire them with the help of a $15,000 Paycheck loan.
Two questions on the loan application asking if the borrower has a criminal history stopped him in his tracks. “When I clicked yes, the form would not let me go further,” Huynh, 45, told CBS MoneyWatch. “It makes us feel like second-class citizens.”
The U.S. Small Business Administration, which runs the PPP, did not respond to questions regarding the criminal exclusion. When a reporter asked the White House this week about the rule, President Trump replied, “I’d like to look into that.”
Continue to article: https://www.cbsnews.com/news/paycheck-protection-program-loans-small-business-owners-criminal-convictions-excluded-coronavirus/
