The Los Angeles Lakers are one of the latest mammoth companies to have applied for and received Paycheck Protection Program funds meant for actual small businesses. The NBA team is thought to be worth $4.4 BILLION and they received $4.6 MILLION. They quickly repaid the loan once learning the taxpayer-backed fund had run out of money.
RELATED: Big Companies Got Loans Meant For Actual Small Businesses And It’s A Slap in the Face
NBA’s Lakers Got $4.4 Million PPP Small Business Loan And Quickly Repaid It
The NBA’s Lakers applied for the PPP loan through the Small Business Administration, a part of the federal government’s $2.2 trillion economic stimulus package.
The Lakers request for funds was processed during the first round of PPP, but after learning funds were quickly exhausted less than two weeks after the program opened April 3, the professional basketball team returned the loan.
Other big companies to have announced plans or have already returned PPP loans under the SBA CARES Act due to public outrage include Shake Shack, AutoNation, and Ruth’s Chris.
PPP Loans Went To High-Profile Companies With Strong Banking Relationships
The Lakers issued a statement about the loan they received saying, “The Lakers qualified for and received a loan under the Payroll Protection Program. However, once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need. The Lakers remain completely committed to supporting both our employees and our community.”
“The PPP ran out of money after less than two weeks, leaving many mom and pop businesses without the assistance they sought,” the statement reads. “Some of those loans went to high-profile companies with strong relationships with commercial or private banks, who were able to simplify the application process for their clients.
Treasury Secretary Steven Mnuchin chastised the team Tuesday.
“I’m a big fan of the team, but I’m not a fan of the fact that they took a $4.6 million loan,” he said on CNBC. “I think that’s outrageous and I’m glad they returned it or they would have had liability.”
CRAZIEST TIMES BIG COMPANIES GOT PPP LOANS MEANT FOR ACTUAL SMALL BUSINESSES
The Lakers franchise is thought to be the NBA’s second most valuable franchise and is worth $4.4 billion, according to Forbes. ESPN broke the story that the Lakers had received $4.6 million.
They qualified because they have less than 300 employees.
Paycheck Protection Program loans we meant to be used as a lifeline for small businesses and self-employed. They are 100% forgivable if the loan is used for certain expenses such as rent, utilities, payroll, and keeping staff.
The Treasury Department issued new guidelines for businesses applying to the second round of Paycheck Protection Program loans–don’t apply if you don’t need the cash to survive.
Another Example Of The Wealth Divide In America
Millions of small businesses and self-employed people missed out on the first round of PPP loans because funds were gobbled up by massive businesses and corporations instead.
In yet another example of the wealth divide in America, small businesses and the self-employed were left on their own to figure out the SBA taxpayer-backed program whose guidelines changed often in the first round–while big companies had access to paid accountants. Big banks are also accused of showing preferential treatment to applications with larger loans sizes.
Big businesses getting massive loans by taking advantage of a loophole lobbied for by mega-hospitality industry magnates has caused permanent business closures, total loss of life savings, landlord lock outs, and even some business owners resorting to selling their own personal possessions in order to make payroll.
SMALL BUSINESSES ARE NOW SUING CHASE, BIG BANKS FOR SHUFFLING LOANS TO MAKE MORE PROFIT
The Lakers haven’t furloughed or laid off any employees during the coronavirus pandemic, and the franchise doesn’t plan to make any employee cutbacks. The team’s top executives agreed to defer 20% of their salaries until later this year or early next year, including Commissioner Adam Silver.
The 16-time NBA champions play in the nation’s second-largest media market. Their current roster led by basketball superstars LeBron James and Antony Davis was on top of the Western Conference when the NBA suspended play in March.
NBA’s Lakers Got $4.4 Million PPP Small Business Loan And Quickly Repaid It
LA Lakers are one of the latest mammoth companies to have applied for and received Paycheck Protection Program funds meant for actual small businesses. The NBA team is thought to be worth $4.4 BILLION and they received $4.6 MILLION. They quickly repaid the loan once learning the fund had run out of money.
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