Gavin Newsom-linked companies have received nearly $ 3 million in federal P3 loans, reports show

Several companies affiliated to one California Govt. Gavin Newsom founded 28 years ago received nearly $ 3 million coronavirus-Tied to the paycheck protection program while other small businesses have not received funds, according to reports.

The money for the program managed by the Small Business Administration was distributed among nine companies associated with PlumpJack, a wine company that Newsom established in 1992.

The governor placed his business holdings in a blind trust before he took office in January 2019 and was reportedly not part of any lending decisions. But Sean Moulton, of the non-partisan project on government surveillance, said companies could have received preferential treatment “not because the governor asked for it, but because of all the connections that exist.”

MICHAEL RAPAPORT RAILS AGAINST NEWSOM AND GARCETTI FOR COVID RESTRICTIONS AFTER THE OPENING OF THE FLEAS MARKET

“It sounds like a small business, but it’s making a lot of money,” Moulton said. “I don’t know how the company justifies taking so much money when there were a lot of companies looking for help. You hope they are using it wisely because there is an opportunity cost there – that money was not used for another small business that might be bankrupt now.

This October 22, 2018, a file photo shows the Plumpjack Wine & Liquor Store in San Francisco, part of the Plumpjack Group’s collection of wineries, bars, restaurants, hotels and liquor stores. (Associated press)

PlumpJack Management Group LLC includes a ski resort, five restaurants and bars, four Napa Valley wineries, a sports retailer and more.

Earlier this year, the company said it received $ 150,000 to $ 350,000 in loans in April and said it used the money to keep 14 employees.

PlumpJack spokesman Jeff Nead said the money was intended for 358 employees across all companies.

Like many businesses struggling with the pandemic, the company has used laons “to protect our workers and keep them employed,” Nead said.

He added that the loans were essential for employment and maintaining the business and said the business followed all federal guidelines.

Villa Encinal Partners Limited Partnership received the most of any PlumpJack affiliate – over $ 900,000, according to KGO-TV of San Francisco. The business is linked to a PlumpJack winery in Napa.

CALIFORNIA SHERIFF INDICATES NEWSOM COUNTY WILL NOT BE “SINGING, PRIVACY OR USED AS MUSCLE AGAINST RESIDENTS”

Small Business Administration requires companies receiving PPP loans to spend 60% of payroll for loan cancellation – but since the company says it only has 14 employees, each employee would earn around $ 160,000 per year if the loan was divided into equal parts, KGO reported.

“It is unexpected for an organization of 14 employees to get close to a million dollars,” added Moulton. “The whole point of this program was to save entry-level jobs, people who come in and work on that paycheck. That’s what we put that there, to stop unemployment.”

California Governor Gavin Newsom speaks at a press conference in Sacramento, Calif., September 23, 2020 (Associated Press)

California Governor Gavin Newsom speaks at a press conference in Sacramento, Calif., September 23, 2020 (Associated Press)

Most businesses with 14 employees received approximately $ 128,000 in loans.

It is not clear whether the company or its affiliates will seek loan cancellation, have spent so much on salaries, or have spilled over into their loan applications during the program’s frantic first months. Moulton said, in part because federal reporting requirements are so lax.

“Before taking office, the governor transferred title and control of the companies he founded to a blind trust, a step that goes beyond anything required by law,” Jesse Melgar wrote. , Newsom’s communications director, without further details.

CLICK HERE TO GET THE FOX NEWS APP

The news comes as Newsom faces criticism for sending his children to a private school as many public schools across the state are closed and after dining at an upscale Napa restaurant last month with several others while advising Californians to stay at home.

At least eight Democratic and Republican governors are affiliated with small businesses that have received P3s loans, according to a study by the Associated Press.

The Associated Press contributed to this report.

Source link

About Eleanor Blackburn

Check Also

Oamaru woman shares her experience of elder abuse

For two years, Molly, whose name was changed to protect her identity, struggled with growing …

Leave a Reply

Your email address will not be published. Required fields are marked *