Did banks play favorites in PPP or were they just being prudent?
By Neil Haggerty, John Reosti
As lenders dole out a new round of financing under the Paycheck Protection Program, banks are being scrutinized for where they direct loans after criticism that they prioritized high-profile firms. Lawmakers amplified concerns last week that publicly traded firms such as Ruth’s Chris Steak House, Shake Shack and others garnered special treatment from banks in the first round of the program to the detriment of smaller companies reeling from the coronavirus pandemic. …“You cannot have a gigantic program launched within literally a week of statutory enactment and not expect the institutions to basically use the systems they’ve got, which are designed to serve the customers they prioritize and already have,” said Karen Petrou, managing partner at Federal Financial Analytics.