While a hedge fund is not exactly what one thinks about when picturing a small business, some are still saying they should qualify for COVID-19-related aid anyway, and they are applying for the same benefits that are meant more for the mom-and-pop set, according to Bloomberg.

The CARES Act introduced the country to the Paycheck Protection Program, which allocated hundreds of billions of dollars toward loans meant to go to small businesses. In general, these loans are available to those with fewer than 500 employees. This is how hedge funds are claiming that they should qualify too, as many are small operations with few employees by design, as that set-up allows star traders to take home the lion's share of fees.

This move on the part of certain hedge funds has been met with scorn and condemnation by others in the industry, with some calling it corrupt, an abomination and a display of "poor moral judgment." One institutional investor that deals primarily with hedge funds even went so far as to say it would view such opportunistic moves negatively in its future dealings with them. Another hedge fund partner intimated that the names of firms that take these funds can be found through Freedom of Information Act requests, and so he advised his fellows to tread lightly and avoid thinking there will be no public reputation consequences.

What's more, Bloomberg noted that these hedge funds, long accustomed to financial bureaucracy, have been filing their paperwork quite efficiently. This is in contrast to the more traditional small businesses that according to the Wall Street Journal, are contending with a Kafkaesque nightmare. as banks struggle to meet demand, even as they fear funds might actually run out before they can get to them.