Some law firms that took paycheck protection loans banked the money, consultant says
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More than 600 law firms received forgivable loans of more than $2 million under the government’s Paycheck Protection Program.
But the loans didn’t completely protect staff for at least 10 law firms, according to an analysis by Thomson Reuters Legal. And some law firms ended up banking the money, rather than using it for payroll, according to a consultant who spoke with the publication.
The 10 law firms received a combined $68.5 million in forgivable loans, yet they went on to cut jobs, salaries or both, according to the analysis. Many law firms that cut pay during the COVID-19 pandemic, however, have since reversed the cuts.