The IRS will audit all coronavirus relief loans over $2 million granted to small businesses before allowing those loans to be forgiven, Treasury Secretary Steve Mnuchin announced Tuesday.
The announcement comes after President Donald Trump criticized large companies for receiving relief funds meant for struggling small businesses. Many of the businesses and universities have returned funds they received after the White House made it clear they were not intended for them. (RELATED: ‘It’s Time For Congress to Get Back To Work’ — Kevin McCarthy Writes Letter To Pelosi Detailing How To Reopen Congress)
“Before we forgive these loans, we’ll check every single one over $2 million,” Mnuchin said on Fox Business. “So anybody that took the money that shouldn’t have taken the money, one it won’t be forgiven, and two, they may be subject to criminal liability, which is a big deal.”
US President Donald Trump listens as Treasury Secretary Steven Mnuchin speaks during the daily briefing on the novel coronavirus, COVID-19, in the Brady Briefing Room of the White House in Washington, DC on April 21, 2020. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Trump criticized Harvard University for accepting the funds on April 21. Harvard has an endowment of over $40 billion and vowed to return the money soon after. (RELATED: Can Sunlight Really Kill Coronavirus? Separating The Truth From The Fake News)
“Harvard is gonna pay back some money,” Trump said at the time. “They shouldn’t be taking it. Harvard is going to, and I’m not gonna name any other names, but when I saw Harvard — They have one of the largest endowments anywhere maybe in the world, and they’re gonna pay back that money.”