Why were PPP loans called loans if nobody was expected to pay them back, instead of PPP handouts?

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I am not commenting on whether or not they should have been. I am not interested in tying them back to discussion of any other loans or loan forgiveness.

Why call them loans if they are not?

In: Economics

34 Answers

Anonymous 0 Comments

My former employer got the PPP loan and furloughed us for 30 days and indicated the loan would be used to pay us for the time we were furloughed. We got back to work after the 30 days and they informed us that we actually would *not* be getting paid for the 30 days and that the PPP loan was being used to cover operational costs for that 30 days rather than on our paychecks.

Shortly after this, they started firing people because if they had laid anyone off after getting the loan, they would have had to pay back the loan with interest. So instead, they started making up reasons to fire people so that the PPP loan would be forgiven.

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