U.S. pandemic aid program saved 51.1 mln jobs, but wealthy and connected also benefited

Record ID: 1560901

  • Title: U.S. pandemic aid program saved 51.1 mln jobs, but wealthy and connected also benefited
  • Date: 6th July 2020
  • Summary: WASHINGTON, D.C., UNITED STATES (RECENT - JUNE 30, 2020) (UNRESTRICTED POOL) WIDE SHOT U.S. TREASURY SECRETARY STEVEN MNUCHIN (RIGHT) AND FEDERAL RESERVE CHAIR JEROME POWELL (LEFT) SEATED BEFORE COMMITTEE SIDE VIEW OF U.S. HOUSE OF REPRESENTATIVES FINANCIAL SERVICES COMMITTEE (SOUNDBITE) (English) U.S. TREASURY SECRETARY, STEVEN MNUCHIN, SAYING: "We are in a strong position to recover because the administration, working with Congress on a bipartisan basis, to pass legislation and provide liquidity to markets in record time. In particular, the PPP is keeping tens of millions of employees connected to their jobs. Economic impact payments are also helping millions of families and workers through these challenging months. We are monitoring economic conditions closely. Certain industries, such as construction, are recovering quickly, while others, such as retail and travel, are facing longer impacts and may require additional relief."
  • Embargoed: 21st July 2020 00:55
  • Keywords: Kanye West Manhattan PPP Paycheck Protection Program President Donald Trump Treasury Secretary Steven Mnuchin
  • Location: WASHINGTON, D.C. / NEW YORK, NEW YORK / LOS ANGELES, CALIFORNIA, UNITED STATES
  • City: WASHINGTON, D.C. / NEW YORK, NEW YORK / LOS ANGELES, CALIFORNIA, UNITED STATES
  • Country: USA
  • Topics: Government/Politics
  • Reuters ID: LVA003CLOAUDJ
  • Aspect Ratio: 16:9
  • Story Text: A high-profile pandemic aid program protected about 51.1 million American jobs, the Trump administration said on Monday (July 6), as it revealed how $521.4 billion in taxpayer cash was injected into small businesses but also into the pockets of the rich and famous.
    The data on the small business Paycheck Protection Program (PPP) seemed to confirm worries among Democrats and watchdog groups that in addition to mom-and-pop shops, the funds went to well-heeled and politically-connected companies, some of which were approved for between $5 million and $10 million.
    Those include several firms that lobby on public policy, such as Wiley Rein LLP and APCO Worldwide, as well as prominent law firms like Kasowitz Benson Torres LLP, which has represented President Donald Trump, and Boies Schiller Flexner LLP.
    Kasowitz Benson Torres said the funding helped the law firm preserve hundreds of jobs at full salary at a time when federal courts and its offices were shut down.
    The gallery of well-connected names extended deeply into the world of America's privileged and super famous.
    Sidwell Friends School, an exclusive private school which educated former President Barack Obama's daughters, was approved for between $5 million and $10 million, as was Saint Ann's School in Brooklyn, which - with tuition exceeding $50,000 per year - is attended by the children of hedge fund managers and celebrities.
    Newsmax Media Inc, the media company run by Trump donor Christopher Ruddy, got the nod for between $2 million and $5 million. So did billionaire rapper Kanye West's Yeezy LLC clothing company. Newsmax said in a statement it was eligible for the program and did receive a loan, but declined to elaborate.
    Aside from Kasowitz Benson Torres and Newsmax, the other companies and schools did not immediately respond to a request for comment.
    The colossal data set released by the U.S. Treasury Department and Small Business Administration (SBA), after initial resistance, gives Americans their first full look at who got cash from the first-come-first-served PPP that has been dogged by technology, paperwork and fairness issues.
    Treasury Secretary Steven Mnuchin had initially refused to name any recipients, saying it could expose borrowers' proprietary business information. But under pressure from lawmakers, he agreed to shine a light on large borrowers.
    Launched in April, the unprecedented program - which has been extended until Aug. 8 - allows small businesses hurt by the pandemic to apply for a forgivable government-backed loan from a lender.
    (Production: Vanessa Johnston)
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