Michael Birnbaum spoke to Billboard about music streaming service LiveXLive borrowing $2 million from the federal Small Business Administration’s Paycheck Protection Program (PPP).
“They don’t want people taking money that they can’t legitimately say it’s a necessity,” Michael said. “But you can be a successful company and still have an urgent need right now, even if you expect to be okay in a year.”
He added that the SEC is “going to look at public disclosures and expect people to be truthful and candid based on what they knew at the time,” noting that if a company is “telling [the] Treasury, ‘I need these funds, and they’re necessary to my continuing operations,’ you don’t want to simultaneously be telling your investors, ‘We expect robust growth,’ and then have to clarify, ‘I only meant that if I was getting the PPP funds.’”
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