About 300 companies that received as much as half a billion dollars in pandemic-related government loans have filed for bankruptcy, according to a Wall Street Journal analysis of government data and court filings.
Companies that received PPP funds before filing for bankruptcy should generally be protected against any attempt to claw back those funds, said Howard Berkower, a partner at law firm McCarter & English LLP. The exception is where there is clear evidence of fraud. “If you took the money and bought a Lamborghini, they’re going to find you,” he said.
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