The US Small Business Administration says updated guidance for the Paycheck Protection Program makes it harder for big public companies to qualify. Large companies that have received PPP loans can avoid scrutiny if they return the money within two weeks, the SBA says.

Key Points:

• The Small Business Administration issued new guidance on Thursday that makes it “unlikely” that big publicly traded companies can access the next round of funding for the U.S. government’s small business relief program.
• Companies applying for coronavirus relief funds must certify that the loans are necessary and that they cannot tap other sources of funding, the SBA said. By definition, public companies have access to the capital markets. For instance, Shake Shack returned the $10 million it got through the PPP after it sold $150 million in new shares.
• “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith,” the SBA said. 
• In a key detail, the SBA indicated that large public companies who tapped the PPP before the rule change can avoid scrutiny by returning the relief loans in two weeks.

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