Man Who Made Sure Hedge Funds Wouldn’t Get Bailout Money Could Kinda Use Some Himself

Given the sort of “small businesses” who successfully sought federal small-business bailout loans, it’s highly probable that some enterprising hedge funds would have joined the rush to the trough. And they might have gotten away with it, too, if not for one man’s inability to speak to the press without saying something misjudged, ill-timed or otherwise ill-advised. But Anthony Scaramucci did go on television and say that hedge funds are small businesses, too, so now his old friend and colleague (and former fellow hedge fund manager) has had to make clear that they are not, at least for the purposes of partaking in the $320 billion to be given away in PPP part deux.

“Hedge funds and private equity firms are primarily engaged in investment or speculation, and such businesses are therefore ineligible to receive a PPP (paycheck protection program) loan,” the SBA said wrote in an update to clarify which businesses may apply for relief under the program.

“The Administrator, in consultation with the Secretary, does not believe that Congress intended for these types of businesses, which are generally ineligible for section 7(a) loans under existing SBA regulations, to obtain PPP,” the update said.

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