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Home›Investment›PPP: relief granted to hairdressers, restaurants, law firms and some members of Congress

PPP: relief granted to hairdressers, restaurants, law firms and some members of Congress

By Elizabeth J. Dominguez
March 9, 2021
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The data published by the Small Business Administration and the Treasury shows that a large sample of American businesses received loans, including gyms, hair salons, the media, law firms and construction companies.

Disclosure of companies receiving Paycheck Protection Program loans also sheds new light on politically connected recipients.

Several members of Congress or their families have benefited from the paycheck protection program, the data shows.

They include Representative Mike Kelly, a Republican from Pennsylvania who owns car dealerships of the same name, has received three loans of up to $ 1 million, data shows. Her spokesperson said in a statement that Kelly was not involved in day-to-day operations and “was not part of the discussions between the company and the PPP lender.”

Republican Missouri Rep. Vicky Hartzler, whose family farm supply business also benefited from the program, defended her family’s loans in April, writing “Our family businesses have applied for and received PPP loans to ensure our employees can remain employed and the company can pay the expenses. These loans are authorized for members of Congress and were acquired in accordance with the provisions written in the CARES Act. “

Political groups and think tanks are on the list, including the Messina Group, a strategic advisory group founded by Jim Messina, a former adviser to President Barack Obama. Nonprofits associated with congressional groups have also benefited. The Congressional Black Caucus Foundation and the Congressional Hispanic Caucus Institute have both received loans between $ 350,000 and $ 1 million, according to the data.

Conservative news outlet Newsmax, run by President Donald Trump’s associate Christopher Ruddy, received between $ 2 million and $ 5 million from the program. The Washington Times received between $ 1 million and $ 2 million in loans and the Daily Caller also received money – as did the left-wing watchdog Media Matters, which received up to $ 2 million.

About 8% of the money went to hard-hit food and hospitality companies, including chains like PF Chang’s. Nonprofits were also eligible for the aid, and groups like the Make-A-Wish Foundation of America and Girl Scouts of America received money, the data showed.

The data also showed that loans were also made to some private colleges and elementary schools, including the elite Sidwell Friends School in Washington, DC, as well as several arts organizations. The American Ballet Theater, the Baltimore Symphony Orchestra, and the San Francisco Museum of Modern Art were among those relieved.

Churches as well as affiliated schools and social service organizations across the country qualified. According to an analysis of the data by CNN, at least 2,234 loans, totaling more than $ 812 million, have been made to Catholic organizations, including the Archdiocese of Washington.

Other recipients included Yeezy, Kanye West’s fashion brand, which the government says has received between $ 2 million and $ 5 million in loans.

More than 4.8 million small businesses have benefited from more than $ 520 billion in potentially repayable loans under the program – a central pillar of the $ 2.2 trillion emergency economic relief effort in March keeping the economy afloat as the pandemic has led to massive business closures across the country.

The program encountered a series of problems in its early days given the speed of its creation. Between a difficult rollout, regularly changing rules and guidelines, and a first round of funding that favored small businesses with long-term relationships with lenders, there was no lack of criticism from businesses, banks and lawmakers.

Disclosures by a series of large state-owned companies and well-known brands ranging from restaurants like Potbelly, Shake Shack and Ruth’s Chris Steakhouse to the Los Angeles Lakers of the NBA, also increased the pressure on the administration as it operated throughout. along the early days of the program – and largely pushed the push to force the release of more information. All of these companies eventually paid back the loan money.

But those cases represented only a fraction of all borrowers on the program, leaving millions of loans in the dark – until Monday.

As designed, the program provides potentially repayable loans to businesses with fewer than 500 employees to keep their workforce on the payroll. The program was so critical when it was created that a first round of funding dried up in less than two weeks and had to be replenished. But interest in the program has largely waned in recent weeks, as changing rules and the inability of borrowers to come back for a second loan have limited the number of small businesses willing or able to go through the application process.

More than $ 130 billion in allocated funds went unused when the program closed on Tuesday night – money that will be used as the basis for the next round of small business aid. Lawmakers also agreed last week to extend the application window for the current program, which closed on June 30, until August 8.

The publication completes a reversal for the Trump administration, which for weeks ignored requests from lawmakers and the media for data on loan levels. Treasury Secretary Steven Mnuchin told a Senate committee last month that no data would be released but would change course amid mounting pressure.

However, the published data does not include the entire universe of loan data. The release captures information on borrowers for loans over $ 150,000, which is only about 14% of total program loans.

But the Treasury Department, Small Business Administration, and lawmakers have decided on that number, fearing that releasing loans below that threshold could create ownership and privacy issues for smaller borrowers – individual businesses in particular. .

House Democrats, however, rejected the move and continued to push for access to all data, which Mnuchin and SBA Administrator Jovita Carranza said they would send to Capitol Hill as early as Monday.

CORRECTION: This story has been corrected to reflect that the American Ballet Theater has received a loan.

CNN’s Janie Boschma, Clare Foran, Sergio Hernandez and Melissa Tapia contributed to this report.

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