Changes to guidance in the small business loan program may give ammunition to critics who charge that the government is too lax in its oversight.
" and even criminal liability if they didn't really need the government money. Mnuchin's warning came at the height of an uproar last month over large companies using the PPP. Companies that could raise money elsewhere were given a deadline to return the funds.in a CNBC interview on April 28. "It's the borrowers who have criminal liability if they made this certification and it's not true.
"I don't see anybody being convicted for this, honestly," said Scott Pearson, a partner at Manatt, Phelps & Phillips. "What will scare people away is the threat of being accused. The suggestion there is criminal liability for a company that has a good argument that they were eligible for these loans based on the structure of the CARES Act is ludicrous."
"They're trying to use public shaming mechanisms to embarrass companies into giving money back that, technically, they're allowed to take under the program," said Axelrod, now a partner at law firm Linklaters.
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