The economic stim plans have all been spent and now we look to see who got the cash that did not need to……
The Treasury Department has released the names of everyone who got a loan bigger than $150,000 through the PPP—the Paycheck Protection Program designed to help businesses weather the pandemic. While millions of small companies were helped by the loans, which can be forgiven if the money is used for payroll, some of the recipients were drawing particular attention:
- Billionaires: NBC News lists some of the billionaires whose companies received loans, including Kanye West, whose Yeezy apparel brand took a loan of up to $5 million. West (who swears he’s running for president) owns a 100% stake in the company, which is valued at $3 billion. Another billionaire, property developer Joe Farrell, a big GOP fundraiser, received up to $1 million. (Farrell made $2 million renting out his Hamptons mansion amid the pandemic.) Also, West Virginia Gov. Jim Justice’s family companies got at least $6.3 million.
- Odds and ends: The AP rounds up others getting loans, including sculptor Jeff Koons (up to $2 million); the Girl Scouts (up to $1 million); TGI Fridays (up to $10 million); and PF Chang’s China Bistro (up to $10 million). About 600 asset-management companies and private equity firms also got money, though financial firms weren’t thought to have been badly hit by the pandemic, and their employees are well paid to start.
- Trump ties: ProPublica reports that businesses connected to President Trump’s family and close associates could receive up to $21 million. That includes at least $150,000 for a hydroponics lettuce farm backed by Donald Trump Jr., as well as multiple companies connected to presidential son-in-law Jared Kushner (for a total of $6 million).
- Trump donors: The AP reports that roughly $275 million went to companies owned or operated by big donors to the Trump 2020 campaign. That includes a loan of up to $5 million to the conservative website Newsmax, whose CEO, Christopher Ruddy, has given $525,000 to pro-Trump PACs. Also, Muy Brands—operator of Taco Bell, Pizza Hut, and Wendy’s—got up to $10 million. Owner James Bodenstedt has given more than $670,000 to Trump in recent years.
- Obama ties, too: That friends of Trump received loans may be getting attention, but the Daily Beast notes that they went to the “well-off and well-connected in general” in DC, no matter their political affiliation. Everyone from former Secretary of State Madeleine Albright (up to $5 million for her global consulting firm) to anti-tax crusader Grover Norquist (up to $350,000) received loans. Obama administration alums Jon Favreau and Tommy Vietor got up to $350,000 for their Fenway Strategies company.
- Grindr: The gay dating app sold just last month by a Chinese owner and valued at $620 million received a loan of up to $2 million, reports Reuters.
- Scientology: Three of its churches took loans of $350,000 each, per NBC News. The Church of Scientology is thought to be worth at least $1 billion.
- The full list: It can be accessed here through the Small Business Administration.
Most of this is money pissed away and given to those economic parasites that did not need the cash……
Even a backwater state like Mississippi has its parasites…in this case it is those close to the Gov. Reeves…..
According to data released by the U.S. Treasury, a company partially owned by Mississippi Gov. Tate Reeves was a recipient of hundreds of thousands of dollars in a federal pandemic rescue package.
Southern Air Conditioning and Supply is a family business created and run by Reeves’ father. An insurance company, Coker & Palmer, where Reeves’ wife Elee Reeves works also received funding. Both businesses were approved to receive between $150,000 and $350,000 each.
As usual….an economic downturn makes those toads on Wall Street richer and richer…..while those that deal with the real consequences of the economic collapse get little to nothing…..
But not to worry…..Congress could make things worse this Summer…..
Congress has less than a month to hammer out a deal on the next round of stimulus before expanded unemployment benefits expire. State and local governments are starting to feel the pinch of budget shortfalls. And while the U.S. got a piece of (relatively) good news in last week’s jobs report, which featured an unemployment rate 2.2 percentage points lower in June than it had been in May, the economy has been thrown back into chaos in the meantime, with a number of states pulling back on their reopenings amid spiking COVID-19 infections and hospitalizations.
Our newest survey of economists highlights just how consequential governmental decisions over the next month may be: On average, these economists think that a refusal by Congress to extend unemployment benefits or bail out state and local governments is just as likely to hurt the economy as local economies staying open in spite of COVID-19 spikes — or even closing because of the virus.
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