NEW YORK (Reuters) - Wave Life Sciences (WVE.O) said it will return a $7.2 million loan granted under the Payroll Protection Program (PPP), the latest company to do so following new guidance from the U.S Treasury Department.
“We made this decision after the SBA (Small Business Administration) issued new guidance that states, in effect, that public companies are not appropriate recipients of these loans,” a spokeswoman for the biotechnology company said in an emailed statement on Friday.
The company initially made the disclosure in a regulatory filing on Thursday, saying it had initiated a repayment of the loan to JPMorgan.
U.S. companies on Thursday began refusing government loans they were just awarded, after the Treasury Department updated its guidance.
Reporting by Joshua Franklin in New York; Editing by Chizu Nomiyama and Leslie Adler