In early April, after experiencing negative impacts to its U.S. business resulting from the COVID-19 pandemic, BGI Americas Corp. applied for a PPP loan to help cover local salaries and prevent layoffs of U.S. employees. Although the company qualified at that time to receive these funds, BGI Americas announced it has returned the money to the U.S. government.
After BGI Americas applied for the funds, the U.S. Small Business Administration and Treasury Department issued new guidance clarifying that the loans were not intended for companies with access to the equity market. BGI Genomics, the parent company of BGI Americas, is a public company listed on the Shenzhen stock exchange. BGI’s decision takes into consideration this new guidance, as well as the current challenges facing large and small business recovery in the United States.
BGI aims to do the right thing. BGI Americas’ business is managing under these difficult circumstances, and does not want to distract from the U.S. government’s need to prioritize recipients when funds are limited and other small businesses are in greater need. We remain fully committed to protecting the jobs of our U.S. employees.