When a Paycheck Protection Effort Meant to Save Jobs Doesn’t

When a government initiative is called the “Paycheck Protection Program,” the assumption is it will keep workers on the job. But that hasn’t necessarily been the case.

Baked into the structure of the aid program, which uses taxpayer funds to back loans to businesses, are exemptions that employers can use to let workers go—even during the loan period—while still watching those “loans” become grants.

At the same time, lenders, not the government, are the first ones responsible for making sure businesses use the relief properly, and very little, if any, information on how businesses are using the money is publicly ...