Mike Morse Law Firm Returned 2M PPP Money – Experts Weigh In

FAQs

• Why did Mike Morse Law Firm apply for, and then return, its $2 million PPP loan?

  Mike Morse said applying was the prudent thing to do and that it would have been negligent to his employees not to apply. He said giving it back wasn’t an easy decision, but his gut and heart told him it was the right thing to do because other businesses and people need it more than he does.

• Why did some businesses get PPP funding faster than others?

  Dennis Archer Jr. said banks earned a fee on the money they loaned out, and that a bank with an existing relationship with a borrower, through loans and lines of credit, would prioritize that borrower. He said small business owners without a banking relationship, who probably needed the money more, got left out, and advised young entrepreneurs to establish banking relationships.

• When did Dennis Archer Jr. expect restaurants like his to reopen?

  He guessed that between June 15 and July 15 restaurants would be able to open at some percentage, his guess being 50%, along with other guidelines. A return to 100% capacity, with people three deep at the bar, he said could be next year.

• Did PPP loan money reach the small businesses that needed it most?

  Mike Morse said he learned that more than 80% of the really small businesses that really needed the loans didn’t get them, which seemed unfair to him. He also said a banker told him big loans were filled earlier than smaller ones because banks made a percentage on the money they gave out.