April 24, 2020 / 4:01 PM / a month ago

Hedge funds and private equity firms won't get PPP loans-SBA

BOSTON, April 24 (Reuters) - Hedge funds and private equity firms are not eligible for the types of U.S. government loans designed to provide relief to small businesses from the economic hardship of the coronavirus outbreak, the Small Business Administration said on Friday.

“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 (Reporting by Svea Herbst-Bayliss and Lawrence Delevingne Editing by Chizu Nomiyama)

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