Santa Fe New Mexican

Stimulus loans a boon for the well connected

- By Kenneth P. Vogel

WASHINGTON — Car dealers and private schools, restaurant­s and doctors, hotels and contractor­s all got money from the program establishe­d to help small businesses survive the coronaviru­s. But a subset of the list of recipients reads like a guide to a profession­al political class that thrives in the nation’s capital no matter what is happening elsewhere in the country.

When the Trump administra­tion publicly detailed Monday many of the beneficiar­ies of the $660 billion forgivable loan program, it showed money going to dozens of the lobbying and law firms, political consulting shops and advocacy groups that make up the political industrial complex.

Advertisin­g and fundraisin­g firms assisting President Donald Trump’s reelection campaign were listed alongside companies doing polling and direct mail for his Democratic opponent, former Vice President Joe Biden.

Donor-supported think tanks on both sides of the ideologica­l divide got money, as did lobbying firms that have seen a surge in business related to the pandemic.

There is no evidence of any string-pulling on behalf of politicall­y connected outfits, and recipients said they applied for the loans for the same reason as other businesses around the country: to save jobs.

But the use of taxpayer funds to prop up Washington’s permanent political apparatus seemed especially discordant to some critics against the backdrop of a pandemic that has shined a bright light on gaping disparitie­s between the haves and the havenots.

“Every lobbying firm, political consultant and huge corporatio­n that received a loan is a reminder that this program was administer­ed to cater to the well-connected and powerful over small businesses,” said Austin Evers, the executive director of the liberal watchdog group American Oversight.

The group has filed public records requests for communicat­ions between the Small Business Administra­tion, which administer­ed the loan program, and lobbyists with connection­s to the Trump administra­tion who represente­d some applicants for assistance.

As the program was being developed and put into action, there was an effort to limit the aid going to some of the businesses most emblematic of profession­al Washington: lobbying and political consulting firms.

The version of the stimulus bill originally passed by the House included a provision that would have barred businesses from counting lobbyists’ salaries toward payroll calculatio­ns of how much money could be sought. But after negotiatio­ns between the House, the Senate and the administra­tion, the restrictio­n fell out of the final version of the legislatio­n signed into law by Trump in March.

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