In New York, California, Florida and Illinois, more than 1,000 real estate and real estate-related companies have received forgivable loans worth at least $ 1 million each under the paycheck protection program.
This is only a fraction of the new releases loan data detailing the recipients of PPP aid, which includes tens of billions of dollars that has gone to brokerage houses, homeowners, construction companies, architectural firms and hotels.
The Trump administration’s release of the massive data set follows the government’s July 4 approval of a third phase requests for the $ 670 billion in PPP funding.
According to the SBA statistics Released Monday, loans worth $ 1 million or more accounted for just 1.7% of all PPP loans issued, but accounted for 34.8% of the total dollar value.
SBA figures show $ 65 billion in PPP loans went to those hardest hit construction industry$ 42 billion went to accommodation and food services, including hotels and restaurants, while an additional $ 16 billion went to real estate, rentals and leasing.
The government data release does not provide specific loan amounts, only broad ranges such as $ 5-10 million, $ 2-5 million, and $ 1-2 million, making it difficult to calculate. total amounts by city or sub-sector. The real deal the parent company also received a PPP loan.
In New York State, 24 real estate companies received loans of $ 5 million or more, including a coworking company Knotel (retained employees: 159), Meridian Capital Group (employees retained: 330), and the Dominick of the CIM Group at 246 Spring Street, formerly known like Trump Soho.
CIM Group acquired the Trump-era hotel from developers Sapir Organization and Bayrock Group in a foreclosure auction in 2014, and the property no longer has any connection to President Trump.
Conflict of Interest Rules Prevented companies controlled by Trump and other senior government officials from receiving funds from the $ 2 trillion stimulus package in March. But companies with less direct ties to the president – and Washington’s political elite in general – have still been able to benefit greatly from the program.
And companies linked to President Jared Kushner’s son-in-law, including Observer Media and two New Jersey hotels, have received PPP funds, the Daily beast reported On Monday.
The newly released data also comes against a backdrop of continuing controversy over program implementation, the first two cycles of which saw hundreds of millions of dollars in Small Business Administration loans go to large, well-capitalized corporations. This is despite the program’s stated goal of supporting small businesses hit hard by the coronavirus pandemic.
One of the biggest beneficiaries of PPP loans, Texan hotelier Monty Bennett, returned $ 68 million in P3 funds in May, citing “inconsistent federal guidelines” and “compliance risk.” It also followed pressure to do so. Companies like Shake Shack, the Los Angeles Lakers and AutoNation have also repaid millions of dollars in loans.
Coast to Coast PPP
Other notable New York-based beneficiaries of PPP funds include Extell Development ($ 2-5 million, 88 employees), Pyramid management group ($ 2-5 million, 302 employees) and Thor Equities ($ 1-2 million, number of employees not provided).
In Los Angeles, luxury residential brokerage agency received a $ 2-5 million PPP loan to retain 104 employees, SBA data shows. The stimulus recipients in Los Angeles also included a number of Chinese developers, such as Greenland Group, which received two loans of $ 1 million to $ 2 million to retain a total of 339 employees; and Shenzhen New World Group, which received two loans of $ 2-5 million for a total of 533 employees. Shenzhen New World has been involved as a major player in a corruption pattern surroundings recently arrested Municipal Councilor José Huizar.
While US affiliates of foreign companies are not precluded from receiving PPP assistance, the lack of guidance at the start of the program led to significant confusion among potential borrowers.
Last month, an LA marketing agency that received a PPP loan sued its canadian owner Onni Group, alleging that the foreign company was seeking “backdoor” access to the program by demanding that the funds be used to pay rent.
In South Florida, notable beneficiaries of the PPP include the subsidiary of the related group PRH Investments LLC, which received $ 2-5 million to retain 232 employees, and that of Jeffrey Soffer Development of Fontainebleau, which received $ 1 million to $ 2 million to keep 87 employees.
In Chicago, one of the main beneficiaries of PPP funds was the city’s oldest residential brokerage house, Baird & Warner, which has received more than $ 5 million for an unknown number of employees.