Showing posts with label Small Business Administration. Show all posts
Showing posts with label Small Business Administration. Show all posts
Thursday, October 9, 2025
Tuesday, July 28, 2020
Feds charge Florida man who used PPP relief funds to buy $318K Lamborghini
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| David T. Hines is accused of using PPP loan funds to make luxury purchases like a $318,000 Lamborghini. (U.S. Attorney's Office) |
MIAMI — A Florida man is accused of fraudulently obtaining a $3.9 million Paycheck Protection Program loan and using part of the funds to buy a $318,000 Lamborghini, the Department of Justice said Monday.
David T. Hines, 29, of Miami, was arrested Friday and charged with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds, the DOJ said in a news release.
Authorities seized the sports car and $3.4 million from bank accounts at the time of Hines’ arrest, the statement said. Those expenses were not permissible under a Small Business Administration loan program meant to protect employees during the coronavirus pandemic, the Miami Herald reported. The SBA’s program, totaling nearly $650 billion, was approved by Congress as part of the CARES Act.
Tuesday, July 7, 2020
Who Got PPP Loans? List Shows Hollywood Talent Agencies, Law Firms, AFI And Kanye West’s Clothing Brand Among Recipients Of COVID-19 Relief
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| AFF-USA/Shutterstock |
Hollywood talent agencies, law firms and production companies were among the recipients of loans under the Paycheck Protection Program, the massive program put in place by Congress to try to carry businesses and their employees through the COVID-19 crisis.
Among the recipients of seven-figure loans were talent agencies APA and Gersh, as well as law firms including Glaser, Weil; Mitchell, Silberberg & Knupp; and Greenberg, Glusker. Also receiving a loan was accounting firm Green Hasson & Janks.
The list, disclosed Monday by the Small Business Association, shows that a cross-section of the entertainment industry drew on the funds as the mass shutdown halted production, closed movie theaters and Broadway and shuttered theme parks. Jim Gosnell, CEO of APA, said via email that the loan “was extremely helpful and much appreciated.”
Other recipients include the SAG-AFTRA Foundation, the Motion Picture & Television Fund, the American Film Institute and Common Sense Media.
Among production companies, recipients included Cinedigm, Ridley Scott’s RSA Films, the Jim Henson Co., Media Res Studio, New Regency Productions and World of Wonder.
Other loans went to Francis Ford Coppola Presents, his lifestyle brand, and Yeezy LLC, Kanye West’s apparel line.
The SBA’s PPP program was set up to provide loans to companies, non-profits and other organizations with up to 500 employees. Firms can have their loans forgiven if they retain their employee payrolls under a set of conditions.
Talent agencies have been particularly hard hit during the pandemic, leading to widespread layoffs and salary cuts. APA last week announced a series of reductions and furloughs, and Gersh instituted pay cuts in April. It was not immediately clear whether that will have an impact on the forgiveness of their loans, which generally extend to eight weeks. The PPP also sets a cap on salaries of $100,000.
Although there has been some controversy surrounding the program, as large chains like Ruth’s Chris Steakhouse and other entities like the Los Angeles Lakers have returned money as the original congressional allocation was quickly depleted.
But the program also has helped companies maintain their payrolls, as lawmakers sought a way to quickly implement a relief program as the coronavirus crisis forced massive closures during the nationwide lockdown.
The impact of COVID-19 has been devastating for the exhibition business, as evidenced by the number of smaller theater chains, including Regency Theatres and Laemmle Theatres, that have received loans. The largest chain, AMC Theatres, has warned that it could face bankruptcy. It is not eligible for the PPP program because of its size.
The Paycheck Protection Program was set up to provide $660 billion in loans since it started in April.
The SBA did not disclose specific loan amounts, but categorized recipients for the range of loans received. Here are the media and entertainment companies on the list:
Monday, July 6, 2020
Vos' Burlington-based company received $150K-$350K in coronavirus loans
From The Journal Times.com:
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| Robin Vos |
MADISON — State Assembly Republican Speaker Robin Vos' popcorn company received tens of thousands of dollars through a federal small business lending program intended to support the economy during the coronavirus pandemic, according to data released Monday.
Robin J. Vos Enterprises in Burlington received between $150,000 and $350,000 through the Paycheck Protection Program, according to figures from the U.S. Treasury Department. The funding was approved on April 11.
The company located at 140 Longmeadow Drive in the Burlington Industrial Park, manufactures popcorn and popcorn supplies. Asked how the money was used, Vos’ spokeswoman Kit Beyer responded with an email.
“His company received one of nearly 700,000 loans given to small businesses, which allowed the company to keep its workers employed during these uncertain times,” Beyer said.
Vos, R-Rochester, represents the 63rd Assembly District, which includes a large swath of southern Racine County stretching from Burlington to Mount Pleasant.
Saturday, June 27, 2020
Friday, June 26, 2020
Tuesday, April 28, 2020
Treasury Secretary Mnuchin says it was ‘outrageous’ for the LA Lakers to take a small business loan
Treasury Secretary Steven Mnuchin said Tuesday he was surprised that the Los Angeles Lakers — one of the best-known and most-successful basketball franchises — took a loan designed to help small businesses weather the coronavirus pandemic.
“I’m not a big fan of the fact that they took a $4.6 million,” Mnuchin told CNBC’s “Squawk Box.” “I think that’s outrageous.”
Mnuchin added he “would have never expected in a million years that the Los Angeles Lakers” would take such a loan. He also said he was glad the team returned the money, “or they would have had liability.”
The Lakers were the second most-valuable team in the National Basketball Association entering 2020, with a valuation of $4.4 billion, according to Forbes.
But the LeBron James-led team is not the only major brand to take a loan from the Paycheck Protection Program, which was enacted last month to help small businesses.
Ruth’s Hospitality Group, which owns Ruth’s Chris Steak House, took a $20 million PPP loan. AutoNation took a $77 million loan. Both companies have said they would return the money.
Overall, more than 200 publicly traded companies have applied for Paycheck Protection Program loans. Mnuchin said it was “unfortunate” and “inappropriate” for some large companies to take these loans, but that he was “encouraged by the number of people that have paid them back.”
He added that companies getting loans of more than $2 million under the PPP would get a full audit to make sure they are valid.
Goddamn big pig companies and corporations have gobbled up the money meant for small businesses. When it involves money, the swine can't control themselves.
Thursday, April 16, 2020
Small-business loan program just hit its $350 billion cap and is now out of money
The emergency fund offered a lifeline to small businesses that have been shuttered or forced to lay off or furlough employees because of the coronavirus.
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| Only a fraction of processed loans have been credited to the bank accounts of the thousands of businesses suffering because of the coronavirus pandemic.Johannes Eisele / AFP - Getty Images |
April 16, 2020, 11:08 AM CDT / Updated April 16, 2020, 2:51 PM CDT
By Ben Popken
One of the main coronavirus relief fund sources for suffering small businesses hit its $350 billion limit Thursday and is no longer accepting any more lenders or applications, the Small Business Administration announced.
"The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding," SBA spokesperson Jennifer Kelly said in a statement. "Similarly, we are unable to enroll new PPP lenders at this time."
The SBA approved 1,661,397 loans from 4,975 lenders before it was exhausted. Due to bottleneck issues between the agency and banks, only a fraction of those have actually been credited to customers' bank accounts.
The emergency fund offered a lifeline to small businesses with fewer than 500 employees, providing loans that turn into grants if used to cover payrolls and avoid layoffs. The hastily constructed program has been bedeviled with administrative issues since its launch less than two weeks ago, with the SBA's loan system crashing under the demand and the nation's largest lenders reduced to manually pushing through a trickle of applicants at a time.
The depletion of the fund's resources had been expected for several days, and is set to launch a battle between Democratic and Republican lawmakers over the shape of additional relief funding.
After Secretary of the Treasury Steven Mnuchin asked Congress for an additional $250 billion funding, the Republican-led effort ended in an impasse as Democrats balked at authorizing additional funds without adding protections for more vulnerable borrowers, such as minority- and women-owned businesses.
President Donald Trump attacked House Speaker Nancy Pelosi, D-Calif., on Thursday over the logjam, one day after threatening to adjourn Congress. A "pro forma" session in the Senate scheduled for the afternoon Thursday looks unlikely to resolve the divide.
The PPP loan program was well intended but had a "structural flaw" in how it was executed, said Mehrsa Baradaran, a professor specializing in banking law at the University of California, Irvine.
"Any time you create a big program and give banks the ability to choose which customers to prioritize, you're going to have disparities. Banks are incentivized to choose the customers that make them the most money," she said.
Major banks did not immediately respond to requests for comment.
Small-business owners have a few options now that the fund is dry. If a business owner has applied but hasn't been approved, they should keep working with their lender to make sure all paperwork is ready in the event the fund is replenished, said James Brower, a partner at the Marks Paneth accounting and advisory firm.
In the meantime, business owners can look around for local and state grants. Anyone who has already been approved by the SBA should make sure their bank deposits the earmarked funds.
Business owners who have not yet applied for the program can still indicate their interest with their bank, if the portal is still open. Some owners have reportedly tried applying with multiple banks, and then accepting whichever offer comes through.
Owners have reported better luck getting funding when working with local community banks with whom they already have a relationship, than through a large retail bank.
Wednesday, April 15, 2020
Strip clubs sue to get COVID-19 relief money too
From JSOnline:
Bruce Vielmetti, Milwaukee Journal Sentinel
Bruce Vielmetti, Milwaukee Journal Sentinel
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| Silk Exotic is a Milwaukee Gentlemen's Club at 11400 West Silver Spring Rd. in Milwaukee. (Photo: Michael Sears/Milwaukee Journal Sentinel) |
Exotic dancers deserve paycheck protection, too, according to a federal lawsuit filed by Wisconsin strip club owners -- though its not clear they would get any directly even if the owners win.
The suit against the U.S. Small Business Administration seeks emergency court action to preserve some of the Paycheck Protection Plan's $350 billion for relief for strip club employees and dancers whose livelihoods have been curtailed because the clubs have not been deemed essential operations and are closed during a public health emergency.
The PPP, part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, is meant to cover small businesses payrolls for eight weeks, and some other expenses, until the anticipated end of stay-at-home orders allow them to restart normal operations. If employers do not fire or cut their workers' pay, the loans are forgiven.
The SBA's regulations governing the PPP exclude certain businesses from eligibility, including those that, "Present live performances of a prurient sexual nature."
Local banks, which administer the PPP, have read that regulation to deny applications from strip club owners, according to the suit, filed in federal court in Milwaukee.
The club owners' lawsuit contends that the clubs' erotic entertainment is lawful and protected by the First Amendment.
"All of the entertainment provided by Silk is non-obscene (and not prurient), appeals to healthy human interests and desires, and is in full compliance with the numerous licenses and permits that are held by the Plaintiffs and have been reviewed by municipal authorities and renewed annually," the suit states.
"None of the live performances at Silk are obscene or unlawful in any way."
The separate businesses that own the four Silk Exotic clubs use the same bookkeeper who applied for the PPP program funds through Associated Bank on April 3, and was informed on April 6 that all four applications were being denied.
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