Tag Archives: Paycheck Protection Program

Tens of Millions in PPP Loans Went to Corporate Polluters After Companies Were Fined $52 Million, Analysis Shows

“Our federal government should not be essentially giving back portions of the penalties they’ve paid, but that’s exactly what the Trump administration is doing through the PPP.”

By Julia Conley, staff writer for Common Dreams. Published 10-4-2020

“These companies have a clear history of violating public trust and the law by contaminating the environment in pursuit of profits.” (Photo: isciencetimes.com)

As the American public awaits a new coronavirus aid package and at least one in five small businesses expect to close by the end of 2020 due to economic hardship, government watchdog Accountable.US and the HuffPost revealed Sunday that at least five companies which were previously fined for pollution violations received millions of dollars in loans via the Paycheck Protection Program which was introduced in March.

Fossil fuel companies, a diesel engine parts manufacturer, and a nuclear waste management company were among the corporations which received up to $32 million in loans, after they were forced to collectively pay more than $52 million in penalties, according to the analysis. Continue reading

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With GOP Refusing Urgent Relief for Main Street, Tens of Thousands of Shuttered US Businesses Now Closing… Permanently

Permanent closures now account for 55% of all closed businesses since March 1.

By Julia Conley, staff writer for Common Dreams. Published 7-24-2020

Photo: Mike Mozart/flickr/cc

With Republicans in Congress intent on drastically reducing aid for unemployed Americans and altering the Paycheck Protection Act in the next coronavirus relief bill, workers across the country are rapidly losing hope that they will ever be able to return to their jobs, according to new polling.

A survey released Friday by AP-NORC found that while 78% of workers who were furloughed or laid off in the early days of the pandemic believed in April that they’d be able to return to work eventually, just 34% are optimistic about their prospects now. Just 18% have already returned to their jobs, and 47% say they no longer believe their old jobs will be available ever again.  Continue reading

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‘The Public Has a Right to Know’: Fed Refuses to Release Documents on Fossil Fuel Industry’s Covid-19 Bailouts

“As the climate crisis demands an abrupt shift away from fossil fuels, the federal government should not be creating programs to bail out these polluters.”

By Jake Johnson, staff writer for Common Dreams. Published 7-9-2020

“The Federal Reserve was tasked with creating a massive program to protect workers’ livelihoods during an intense economic and public health crisis. We should, at the very least, expect transparency about how the program is structured,” said Food & Water Action attorney Adam Carlesco. (Photo: Tony Webster/Flickr/cc)

The Federal Reserve has missed a deadline to release documents requested by environmental group Food & Water Action in May to reveal the extent to which the central bank has used one of its major Covid-19 lending programs to rescue the faltering oil and gas industry.

“The public has a right to know if the Fed created an oil and gas bailout at the behest of an industry that has wreaked havoc on our air, water, climate, and potentially the global financial system,” Food & Water Action attorney Adam Carlesco said in a statement. “As the climate crisis demands an abrupt shift away from fossil fuels, the federal government should not be creating programs to bail out these polluters.” Continue reading

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Trump Friends and Family Cleared for Millions in Small Business Bailout

Beneficiaries of the PPP included a lettuce farming venture backed by Trump’s son, Kushner companies, and a dentist who golfs with the president. The figures were released after a lawsuit by several news organizations, including ProPublica.

By Jack GillumIsaac ArnsdorfJake Pearson and Mike Spies  Published 7-6-2020 by ProPublica

Businesses tied to President Donald Trump’s family and associates stand to receive as much as $21 million in government loans designed to shore up payroll expenses for companies struggling amid the coronavirus pandemic, according to federal data released Monday.

A hydroponic lettuce farm backed by Trump’s eldest son, Donald Jr., applied for at least $150,000 in Small Business Administration funding. Albert Hazzouri, a dentist frequently spotted at Mar-a-Lago, asked for a similar amount. A hospital run by Maria Ryan, a close associate of Trump lawyer and former mayor Rudy Giuliani, requested more than $5 million. Several companies connected to the president’s son-in-law and White House adviser, Jared Kushner, could get upward of $6 million.

There’s no ban on businesses connected to Trump’s orbit receiving money. Democrats added a provision to the CARES Act excluding government officials and their family members from receiving some bailout funds, but not those from the PPP.

The firms sought funding under the Paycheck Protection Program, one of the Trump administration’s sweeping pandemic relief efforts. Created in late March by the CARES Act, it allowed small businesses — generally, those with fewer than 500 employees — to apply for loans of up to $10 million. The loans can be forgiven if used to cover payroll, rent, mortgage interest or utilities.

The program paid out $521 billion to almost 4.9 million companies in an effort to provide relief for small businesses and their workers amid the sudden economic shock brought on by the pandemic. As applications slowed after the initial rush, $132 billion remained unspent, and Congress voted to extend the program.

After resisting releasing the names, the government bowed to pressure from critics and watchdog groups. On Monday, the administration disclosed only those entities that were approved by banks for loans over $150,000. A consortium of news organizations, including ProPublica, has sued the administration under the Freedom of Information Act to release the full list of recipients and loan details.

The program has been criticized for including some loan recipients, particularly large, publicly traded companies, and for favoring wealthier businesses that had existing relationships with banks. In some cases customers could essentially skip the line. Overall, however, many economists praise the PPP for having gotten billions to companies relatively quickly.

The New York Observer, the news website that Kushner ran before entering the White House and is still owned by his brother-in-law’s investment firm, was approved for between $350,000 and $1 million, data shows. A company called Princeton Forrestal LLC that is at least 40 percent owned by Kushner family members, according to a 2018 securities filing, was approved for $1 million to $2 million. Esplanade Livingston LLC, whose address is the same as that of the Kushner Companies real estate development business, was approved for $350,000 to $1 million. The company’s Chief Operating Officer, Peter Febo, responded, “Several of our hotels have applied for federal loans, in accordance with all guidelines, with a vast majority of funds going to furloughed employees.” The loans to Kushner-related companies were first reported by The Daily Beast.

In addition, up to $2 million was approved for the Joseph Kushner Hebrew Academy, a nonprofit religious school in Livingston, N.J., that’s named for Jared Kushner’s grandfather and supported by the family.

In April, a bank approved a loan of between $150,000 and $350,000 for the Pennsylvania dental practice of Albert Hazzouri, who golfs with Trump and frequents Mar-a-Lago, the president’s private club in Palm Beach, Florida. In 2017, Hazzouri used his access to the president to pass him a policy proposal on club stationery on behalf of the American Dental Association. He addressed the note to Trump “Dear King.”

Hazzouri also leaned on his relationship with Trump in an unsuccessful bid to obtain a dentistry license to expand his business in Florida. Hazzouri didn’t immediately return calls seeking comment Monday.

Firms tied to the president’s children also stand to benefit from the program. A small indoor lettuce farming business applied for funds between $150,000 and $350,000, SBA data show. Trump Jr. had invested in Eden Green Technology, a vertical farming company just south of Dallas, whose co-chair, Gentry Beach, was a Trump campaign fundraiser.

Trump Jr. purchased his shares as Beach sought Trump administration funding for his other global business interests, ProPublica first reported in December 2018.

The company has said Trump Jr. played no role in running Eden Green and was brought in during “U.S. friends and family fundraising efforts.” A spokesman, Trevor Moore, said that the company “followed the standard procedure” in applying for the PPP loan and that “receiving it has provided for the preservation of 18 jobs.” It’s not clear how much Trump Jr. invested or whether he’s been paid any dividends since purchasing his shares. Neither Trump Jr. nor a spokesman returned a message seeking comment.

Monday’s list included a Manhattan law firm whose marquee attorney has fiercely defended Trump for almost two decades. Kasowitz Benson Torres LLP — whose managing partner, Marc Kasowitz, was at one point the president’s top lawyer in the special counsel’s Russia investigation — was set to receive between $5 million and $10 million from Citibank, data show. (The largest loan a company could seek was $10 million.)

Once dubbed the “Donald Trump of lawyering” by The New York Times, Kasowitz represented Trump in the Trump University fraud lawsuit. and during the 2016 campaign he helped keep Trump’s 1990 divorce from being unsealed. ProPublica reported three years ago that Kasowitz bragged to friends that he made between $10 million and $30 million per year.

A law firm spokeswoman said its employees have maintained their full salary and benefits thanks to the PPP loan and “substantial cost-saving measures and greatly reduced partner distributions.” The firm has about 400 employees, data show. She said neither Kasowitz nor the firm had any conversations with anyone in the administration about the loan. Other major law firms, such as Boies Schiller Flexner and Wiley Rein, also received loans.

The loans helped a hospital executive tightly linked to another Trump attorney and confidant, Rudy Giuliani. Cottage Hospital, a 25-bed critical access facility in Woodsville, New Hampshire, received between $2 million and $5 million in PPP loans. The hospital’s CEO, Maria Ryan, is a longtime close associate of Giuliani’s.

During the last few years, Ryan has accompanied Giuliani on trips to Jerusalem, where the two visited the Hadassah Medical Organization, and to London, where they attended a two-game series between the Boston Red Sox and the New York Yankees. Last September, Giuliani brought Ryan to a state dinner at the White House.

Ryan currently co-hosts a talk radio show with Giuliani called “Uncovering the Truth.” She has referred to Giuliani, Trump’s personal lawyer, as her “business partner.” Cottage Hospital’s annual revenues typically exceed $30 million, according to its most recent publicly available federal tax return. Ryan’s salary, the last filing shows, is nearly $300,000.

“Mr. Giuliani has nothing to do with the PPP loan,” Ryan wrote in an email to ProPublica. “We applied like any other small business through our bank.”

The loan data released Monday does not reveal the $30 billion in loans that have been canceled. Nor does it provide specific dollar amounts, but instead ranges of loan amounts. Businesses that spend the money according to key provisions of the program, which mainly involve continuing to pay workers, will have the loans forgiven.

Last week, Trump signed legislation to extend the program until early August.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

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‘Speaking of Looting…’: Trump Admin. Refuses to Disclose Corporate Recipients of $500 Billion in Coronavirus Bailout Funds

“This is outrageous AND exactly what was obviously going to happen AND exactly why many of us opposed CARES as written.”

By Jessica Corbett, staff writer for Common Dreams. Published 6-11-2020

Steve Mnuchin. Screenshot: CNN

Progressive critics and advocacy groups are responding with alarm and anger to the Trump administration’s refusal to disclose the names of more than 4.5 million companies that have collectively received over $500 billion in corporate bailout money through a federal program created to provide businesses with relief from the coronavirus pandemic.

The over $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by President Donald Trump in March established the Paycheck Protection Program (PPP) with $349 billion in funding for forgivable loans. After the initial capital ran out in just 13 days, lawmakers approved $310 billion more—though over $130 billion of that amount was still left as of Tuesday. Continue reading

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Pelosi Support for Corporate Lobbyist Bailout Denounced as ‘Dumbest Political Maneuver You Could Possibly Make Right Now’

“Pelosi has run the House of Representatives by fiat for close to two months, and there hasn’t been a single word of protest as she locks every other member of the Democratic caucus out of policymaking.”

By Jake Johnson, staff writer for Common Dreams. Published 5-7-2020

Photo: Gage Skidmore/flickr

House Speaker Nancy Pelosi has thrown her support behind a proposal to allow corporate lobbying groups to receive bailout money from a Covid-19 relief program meant for small businesses, a move one critic bluntly described as the “dumbest political maneuver you could possibly make right now.”

During a webinar with small business representatives on Tuesday, Pelosi said the next coronavirus relief package will include a change to the Paycheck Protection Program (PPP) that would permit 501(c)(6) organizations to receive forgivable taxpayer loans. Continue reading

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‘Lining Up at the Trough’: Federal Reserve to Offer Corporations $500 Billion No-Strings-Attached Bailout Loophole

“Big corporations have shown time and again that they will put their shareholders and executives ahead of their workers if given the choice.”

By Julia Conley, staff writer for Common Dreams. Published 4-28-2020

Through the Primary Market Corporate Credit Facility, the Fed will provide $500 billion to companies by buying bonds, but the companies will not be required to retain employees or limit executive pay. (Photo: Public Domain)

A Federal Reserve program approved by Congress and aimed at providing emergency relief to large companies contains a “catch” which will permit the corporations to lay off employees and spend the money on executive pay, according to a Washington Post report.

Through the Primary Market Corporate Credit Facility, the Fed will provide $500 billion to companies by buying bonds. The corporations will be required to pay the Fed back with interest. Continue reading

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