Lobbyists picked up paycheck loans; so did restaurants.
WASHINGTON — The Trump administration, under pressure to reveal which companies received loans from a $660 billion program intended to keep small businesses afloat, released data Monday showing restaurants, medical offices and car dealerships ranked high among the top loan recipients.
The detailed information from the Paycheck Protection Program was confined to companies that received loans of more than $150,000. The administration said 86.5 percent of the loans were for less than that amount, so the snapshot captured only one sliver of businesses that tapped funds. So far, banks have made about 4.9 million loans through the program, with an average size of $107,000.
Nearly 5,000 businesses received individual loans between $5 million and $10 million, according to the data. The administration included ranges for the amounts, not specific figures.
And the figures did not include details on the roughly $30 billion in loans that were returned as companies realized that they were not eligible for the program, worried that they couldn’t meet program requirements or reacted to a public outcry about big firms getting funds.
Restaurants, medical offices and car dealerships were the top recipients of large loans from the program. More than 40,000 full- or limited-service restaurants received loans worth as much as $32 billion, according to the ranges provided by the government.
Sprinkled among the beneficiaries were businesses that are likely to attract scrutiny, including a fancy sushi restaurant at the Trump International Hotel in Washington; Kanye West’s company, Yeezy; and President Donald Trump’s longtime personal lawyer.
Washington lobbying shops, highpriced law firms and special-interest groups also received big loans, according to the administration, the latest indication of how of the government’s centerpiece effort to shore up momand-pop shops set off a race by organizations far afield from Main Street to secure federal money. The disclosure could further fuel outrage toward the program, which has been complicated by revelations that large, publicly traded companies were taking big loans and concerns that it might leave borrowers saddled with debt.
“My 1,000-foot takeaway is that the government was handing out free money and the line went around the corner,” said Aaron Klein, a fellow in economic studies at the Brookings Institution in Washington. “This is not your mom-and-pop shop on Main Street.”
The administration said the Paycheck Protection Program had helped to support more than 50 million jobs. The share of overall small-business payroll supported per state ranged from 72 percent in Virginia to 96 percent in Florida, according to the Treasury Department.
The program provides forgivable loans to companies that have 500 or fewer employees and meet certain requirements, such as using the bulk of the money to keep workers on the payroll. Lenders are responsible for reviewing recipients’ forgiveness applications to verify that they complied with the program’s rules.
More than 100 law firms received loans ranging from $1 million to $10 million, the data showed. The list included well-known names like Boies Schiller Flexner, the high-priced law firm run by David Boies, which received between $5 million and $10 million. “We don’t comment on our financials,” the firm said.
Kasowitz Benson Torres, founded and run by Trump’s longtime personal lawyer, Marc Kasowitz, received a loan for between $5 million and $10 million.