In a statement, Wave Life Sciences said, it will return a $7.2 million loan granted under the Payroll Protection Program (PPP), 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,” said a spokeswoman for the biotechnology company.

Wave Life Sciences made the disclosure in a regulatory filing on Thursday, saying it had initiated a repayment of the loan to JPMorgan.

Following an updated guidance from the Treasury Department, U.S. companies have begun returning / refusing government loans they had just been awarded.

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