It is not illegal for lawmakers to request or accept money from the Paycheck Protection Program, and each office that responded to a request for comment for this story emphasized that members had no role in the application process and that companies or Nonprofit organizations took the loans legally in an effort to keep people employed during the pandemic.
But the program’s connections to Congress, most of which were not previously disclosed, have raised new questions about the secrecy of administering the $ 670 billion program, as well as potential conflicts of interest as lawmakers prepare. to build the next coronavirus rescue package.
The Paycheck Protection Program has faced transparency complaints and intense scrutiny over the charges that it was helping the well-connected after reports revealed that large corporations, including Shake Shack and the LA Lakers, were among the first in receiving loans, while the smallest companies were stuck in line. Shake Shack and the sports team then repaid the loans.
The Treasury Department and the Small Business Administration finally agreed to disclose some loan recipients, but only for borrowers who took out loans over $ 150,000, a small minority of the program’s total borrowers, as more than 80 percent of Check Protection Program loans were below that threshold.
In May, Democrats attempted to release the recipient list, but their pressure in the House to demand the disclosure of at least some companies was blocked on the floor by Republicans, including Kelly, Allen, Hern, Mullin, Williams, and Hartzler, who voted against the bill.
Paycheck Protection Program loan recipients with connections to members of Congress included “Mike Kelly Automotive Group, Inc.”; “Mike Kelly Automotive, LP” and “Mike, Kelly Hyundai, Inc.”, each of whom received loans of $ 150,000- $ 350,000 from PNC Bank. Kelly’s spokesman Andrew Eisenberger said the legislator was not involved in the day-to-day operations of his dealerships and was not part of the discussions with the lender.
“The Paycheck Protection Program was designed to maintain the incomes of workers who would otherwise have been without pay or self-employment during the coronavirus pandemic, and organizations in which members of Congress have a stake on the property they were not prohibited from receiving PPP loans to help their employees through this difficult time, “said Eisenberger.
RW Allen Construction received a loan in the range of $ 350,000 and $ 1 million. Allen founded the construction company, but gave up his majority stake before coming to Congress and no longer has any decision-making authority, according to his office. A company website lists his wife, Robin, as the president of the company.
“I can confirm that our office has consulted with the General Counsel Office of the US House of Representatives and is confident that the company, like companies across the country affected by COVID-19, is eligible for receive a loan under the Paycheck Protection Program after due diligence and good faith application, “said Andrea Porwoll, Allen’s director of communications.
KTAK Corporation, owned by Hern, the Oklahoma Republican, received between $ 1 and 2 million. The company owns numerous McDonald’s franchises in the Tulsa area. The company owns numerous McDonald’s franchises in the Tulsa area.
In a statement, Hern’s chief of staff, Cameron Foster, said Hern is not involved in the day-to-day operations of the business and that the loan enabled him to keep all of his employees at their current level of employment. “Kevin Hern has been open and transparent with community members about his family business’s need for a salary protection program loan during the COVID-19 crisis,” said Foster.
Four companies owned by Mullin, Mullin Plumbing Inc., Mullin Environmental, Mullin Plumbing West and Mullin Services, took a total of between $ 800,000 and $ 2 million in money from the Payment Check Protection Program. His office did not immediately respond to a request for comment, but his most recent financial disclosure form shows businesses listed as active; Mullin’s wife also received a salary from Mullin Plumbing Inc.
Munley Law, a Scranton, Pennsylvania law firm, received between $ 350,000 and $ 1 million in funds from the Paycheck Protection Program. The firm is closely linked to Cartwright. Cartwright worked there for 25 years before being elected and his wife Marion Munley is a partner there. It was founded by his father Robert, who died in December.
Cartwright still has pension assets held in the company’s profit-sharing plan, a Munley Law spokesperson told POLITICO last year.
The connection has been scrutinized by conservative groups in the past, who alleged that Cartwright would benefit from a bill it sponsored to raise the minimum level of liability insurance for truckers. The firm specializes in trucks and self-litigation.
Both the firm and Cartwright’s office said it did not help Munley obtain the loan, and a Cartwright spokesperson said he voted in favor of a House bill that promotes the transparency of Check Protection Program loans. Payment.
Other legislators have family members who work for companies that at some point made a profit from the small business loan program. Rep. Susie Lee’s husband (D-Nev.) Is the CEO of a regional casino developer, Full House Resorts, who took out a $ 5.6 million Check Protection Program loan. And Rep. Debbie Mucarsel-Powell, Florida’s spouse is an executive at a restaurant chain, Fiesta Restaurant Group, which received $ 15 million in aid before repaying the loan in full. Both lawmakers also voted on the transparency bill.
The Congressional Black Caucus Foundation, which is associated with the CBC, said it received a loan from the Paycheck Protection Program to “support its continuity of operations” during the coronavirus crisis.
“Without this help, the CBCF would have faced a 30% reduction in the organization’s overall budget that affects more than 25 employees,” the organization said in a statement. In addition, the CBCF provides paid and needs-based scholarship and internship opportunities to equip future leaders and increase diversity on Capitol Hill. Otherwise, these young professionals would not have the valuable opportunity of inclusion in the portfolio of public services. “
