Boies Schiller Flexner and other Big Law firms were among the recipients of government loans under the Paycheck Protection Program. Forty-five AmLaw 200 firms received between $210 million and $425 million in total from the Small Business Administration program aimed at saving jobs during Covid-19.
Capital Call: The question remains as to whether the group of wealthy firms, at which the average profits per equity partner reached around $1 million last year, could have skipped government loans and just raised cash by asking partners to pony up cash themselves. But that’s a complicated ask for law firms, which have a lot to lose if they alienate talent.
Take the Cash: “There are firms who felt it was wrong to take the money and they didn’t,” said Peter Zeughauser, a partner at law firm consultancy Zeughauser Group, of the PPP. “And there were others who felt that if the money was available they owed it to their partners to go get it. And it really indicated a divide in cultures.”
Roy Strom has the story in this week’s Big Law Business column.
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