Urges managers to refrain from trying to access funds meant to assist small businesses
Harrisburg, PA - Pennsylvania Treasurer Joe Torsella today asked investment fund managers with Pennsylvania Treasury investment contracts to disclose if they have applied to the Paycheck Protection Program (PPP). He also urged these fund managers not to make requests of this program, which is meant to help small businesses stay afloat during this unprecedented time of coronavirus mitigation.
“Our small business owners—and the workers they employ—are in desperate need of relief. These are people bearing the sacrifice of scaling back parts of our economy so that we can save the lives of more Pennsylvanians. Every penny of aid meant for small businesses needs to go to them, not to cover the operating expenses of investment managers.”
Pennsylvania State Treasurer, Joe Torsella
Any efforts from investment managers to claim PPP funds will be considered in Treasury’s ongoing due diligence.
The PPP is part of the $2 trillion federal stimulus Coronavirus Aid, Relief, and Economic Security (CARES) Act. PPP is administered through the U.S. Small Business Administration and is forgivable if the recipients keep all employees on the payroll for 8 weeks and use the funds to cover payroll, rent and other specified expenses. It is meant to help businesses with fewer than 500 employees.
A letter was sent to all of Treasury’s 13 external fund managers.