Millions in Pandemic Aid Didn’t Stop These Firms from Cutting Jobs or Pay
“Law firms rushed to secure government aid early in the coronavirus pandemic, borrowing nearly $12 billion from the U.S. Small Business Administration’s Paycheck Protection Program as their revenues were threatened by court closures and a freeze in corporate deals,” write Rick Linsk and Caroline Spiezio in Reuters’ Big Story 10.
“The program, created by Congress in March to save jobs and help small employers weather the COVID-19 crisis, has faced criticism that too much of the $525 billion in approved aid went to big businesses in high-wage industries like law. Not only did law firms obtain billions of dollars through the program, but the loans didn’t always ensure jobs and paychecks would be protected, a Reuters analysis found. At least 10 firms that took in a combined $68.5 million in forgivable, government-guaranteed loans under the program went on to cut positions, salaries or both.”