Will failure to disclose PPP loans draw the ire of regulators? It depends (Citywire)

Investment firms receiving a PPP loan during the coronavirus pandemic that fail to properly disclose it may face future regulatory scrutiny – or they may receive a pass. SEC guidance on the issue still remains unclear, but how the regulator reacts to non-disclosure of a PPP loan is likely to be a facts and circumstances approach. Amy Lynch, Founder and President of FrontLine, expects the SEC to look at a firm’s reasons for obtaining the loan, the loan size, and how it was used. Ms. Lynch also states that it appears the SEC will take its time before issuing additional clarity since the mechanisms around PPP loans are still evolving, but expects ultimately, and in most cases, that the regulator will take a light touch, slap-on-the-wrist approach to enforcement. See Citywire (view through free subscription), “Will the SEC ding firms for failing to disclose PPP loans?”