Billionaire rapper and shoe designer Kanye West’s company received a multi-million dollar loan as part of the federal government’s coronavirus stimulus package, according to records released Thursday by the United States Treasury Small Business Administration.
The money was released in the latest round of the Paycheck Protection Program, part of the Trump administration’s $ 2 trillion CARES Act designed to provide economic relief to small businesses during the coronavirus pandemic.
Yeezy LLC, a California company, is listed as a recipient of a $ 2 million to $ 5 million loan by the Treasury. The company identified itself as male-owned and a black or African-American business. He said 160 jobs were saved with the loan.
California business records list Kanye West as manager of Yeezy LLC, a holding company established in Delaware and running out of an office in La Palma, California. West’s Yeezy sneaker empire reportedly made $ 1.5 billion last year.
West’s loan raises important issues of conflict of interest, given West’s outspoken support for President Donald Trump, his multiple visits to the White House, and the outrageously luxurious lifestyle he leads with his wife Kim Kardashian West.
Both he and his wife have recently celebrated reaching billionaire status. After it effectively broke down years ago, West traded his fortune in his best-selling Yeezy sneakers and reached billionaire status in April, according to Forbes.
Last week, his wife also claimed to be a billionaire. “I am very proud of my beautiful wife Kim Kardashian West for officially becoming a billionaire,” West tweeted, along with a photo of some vegetables.
PPP loans, available to companies with fewer than 500 employees, are canceled by the government if the companies spend the money on eligible costs and retain a certain percentage of staff during the pandemic.
The list of 40,000 companies that will receive loans of $ 150,000 and more was released Monday after complaints from Democrats that previous funding rounds were not transparent.
The program has been plagued with problems, from digital portals that were blocked as soon as the apps were opened, to banks that prioritize their biggest customers, to Trump-friendly companies that receive large loans. Several large companies, such as Shake Shack and Harvard, repaid loans after attracting negative publicity.
Loans of $ 150,000 and more represent about 13 percent of all approved loans, but about three-quarters of the total dollar amount of loans approved, according to CNBC.
Yeezy LLC has been reached for comment.
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