US companies got emergency government loans despite having months of cash
When American companies recently applied for U.S. government loans meant to help small businesses survive the coronavirus crisis, they had to certify they needed the cash to cover basic needs like salaries and rent. The money, up to $10 million, was meant to tide them over for eight weeks.
Some recipients, though, had considerable cash on hand. Forty-one publicly traded companies that got the emergency aid already had enough to cover basic expenses for two months or more when they applied for the funds, a Reuters analysis found -- even if their revenue dropped to zero. Thirty had three months or more of cash. Six had enough to last at least until December, according to the review, which was based on average monthly operating expenses from 2019.
All told, these relatively flush 41 companies were able to secure $104 million in government aid, at a time when legions of smaller companies with little in their coffers were being turned down. Seventeen of the 41 recipients had market capitalizations of at least $100 million.
“It's disheartening to see relief spending go to companies that don't appear to desperately need a lifeline,” said Danielle Brian, executive director of the Project On Government Oversight, a Washington-based non-profit that monitors government spending. “This shows just how urgently we need more oversight of this program and the rest of the federal government's relief spending.”
https://www.msn.com/en-us/money/companies/us-companies-got-emergency-government-loans-despite-having-months-of-cash/ar-BB13Kwsf?li=BBnbfcN
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Cue the hungry baby birdies with their little mouths agape waiting to be stuffed:
