As the Treasury Department implemented the Paycheck Protection Program, Millions of small businesses and nonprofits across the United States breathed a sigh of relief. The scheme was designed to help businesses in need through the financial crisis during the coronavirus pandemic, but several larger, wealthier establishments also received some additional capital.
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650,000 out of five million named as PPP money recipients
Those many small businesses that received taxpayer money will be extremely grateful for the help, but the biggest names on the list of companies that were able to get a forgivable 1% loan have come to attention. At the end of June, there were around five million companies that had benefited, worth $ 521 billion, although only those who received more than $ 150,000 were named by the Treasury Department on Monday, of which there were 650,000.
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Ice Cube’s professional basketball league was one of the named, while Kanye West, the rapper who recently suggested he would throw his hat into the presidential election ring, took advantage of the show through his range of clothing, Yeezy. Also on the list were various political groups, West Virginia billionaire governor Jim Justice, Girl Scouts, financial giants Rosenblatt Securities and artist Jeff Koons, who was approved for a loan of up to $ 2 million. Last year he auctioned off his ‘Rabbit’ for $ 91 million.
Another recipient who caught the eye of those scanning the government list was Muy Brands Inc, a large franchise of the Pizza Hut, Wendy’s and Taco Bell restaurant chains. Its CEO, James Bodenstedt, is known to donate large sums to President Donald Trump. and from this scheme he took loans between $ 15-30 million.
PPP release reaction
The disclosure of the information was generally received positively, with Chuck Schemer, the Democratic leader of the Senate, calling it a “good start,” although he noted the fact that it should have happened earlier and that its publication was under pressure from your party. He said continued transparency was needed to “Make sure these taxpayer dollars go toward what Congress intended: really small, unbanked small businesses.”
Needed | American artist Kanye West’s clothing company took advantage of PPP.
MICHAEL REYNOLDS (EFE)
Florida Republican Senator Marco Rubio, who is also chair of the Small Business Committee that developed the program, said it was “a historic lifeline” for small businesses at this difficult time.
However, this so-called ‘transparency’ has come under scrutiny as it refuses to release information for those under $ 150,000. That represents more than 80% of the total number of recipients. Numerous high-profile religious organizations were entitled to benefit from the plan, including those of First Baptist Dallas, a strong supporter of Trump-Pence, who took out a loan of between $ 2 and $ 5 million to help him during this period.
Industry breakdown
Some experts have stressed that loans have not been reaching the industries and businesses that really need them. For example, we know the pain that hotels, restaurants and bars have experienced, but were only fifth on the list of industries receiving PPP loans. Ahead of them were healthcare, professional and commercial services, construction and manufacturing industries.
What is clear is that while disclosure of the information was important, many of the details are still missing, including the one behind minority companies, gender, race, and demographics. Many are pushing for more transparency in the coming weeks to confirm whether, in fact, American taxpayers’ money goes to the people who really need the support.
