Let's say the employee was furloughed. But, the company applied and got PPP funds by saying they wouldn't furlough anyone. The employee was told one thing, but the reality was another. This could be a fraudulent form of a bridge loan, right? Easier to get in a crisis, the banks will only figure it out later.
Financing for startups has probably totally dried up. I bet a lot of VCs said: "We don't have any more funding for you, but try this approach..." And, they recommended going after PPP and at the same time recommended firing people to slim down the salary burden, but only after the PPP loan was safely in place. That extra time could be a lifeline for a startup.
