M K Ramadoss
CORONA VIRUS MAY BRING POTENTIAL LEGAL TROUBLE TO AMERICAN SECTION ---
The program provides a loan of 2-1/2 months of payroll, health insurance, retirement and other benefits, rent, utilities, mortgage interest to help them operate the business keeping the employees employed.
The plan allows the loan to be forgiven if at least 75% or more is used for salaries, employee benefits and upto 25% used for rent, utilities etc. It is like a free grant from the government.
In order to get the loan, the business has to certify as follows:
“All borrowers should review carefully the required certification that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.”
Already many businesses have returned the loan when they realized that they could not satisfy the certification. Since PPP law and bank laws are involved, there is a great potential for businesses getting entangled in criminal prosecution. And government has given a window till May 14th to return the loans.
From Facebook, it was learnt that American Section got the PPP loan. It is estimated to be around $325,000. TSA has been silent about it.
With $17million in the Theosophical Investment Trust, it would be difficult for TSA to justify it does not have access to other liquidity to keep business going.
The Trust is controlled by TSA and Trust has no restrictions for TSA using the money except for a small portion which is restricted.
Let us hope that the professional staff at Wheaton will guide the President to decide whether to keep the money and get it forgiven or return it.