Rep. Ben McAdams, D-Utah, is upset that many small Utah businesses are still unable to apply for federal emergency loans, while reports show some well-heeled businesses have them received, including the Los Angeles Lakers, Ruth Chris Steak House and Shake Shack.
So he called on the Trump administration on Wednesday to release data on who exactly is getting this money to help survive the coronavirus downturn – and who is not. He also called on the government to correct its overwhelmed loan application system.
“If Utah lenders are unable to download and process loan applications and small businesses in Utah are still being left out, which financial institutions are going by and which businesses are benefiting?” McAdams asked in a letter to Treasury Secretary Steve Mnuchin and Small Business Administration chief Jovita Carranza.
He called a press conference on historic Midvale’s historic Main Street to say Main Street small businesses deserve the help – and called on the Trump administration to release a full list of loan recipients to show whether some large ones companies play with the system.
“For every $ 4 million loan given to a business that doesn’t really need it, that’s 20 small businesses that didn’t get the $ 200,000 they need to keep their doors open and survive,” did he declare.
“A lot of businesses that don’t need it lined up first and were able to get the money back,” he said. “When Congress approved spending millions of dollars to help small businesses and their employees survive this public health crisis, not giant companies with deep pockets.
McAdams spoke after Congress last week provided an additional $ 310 billion for the small business paycheck protection plan, but the system was overwhelmed when loan applications were able to be submitted on Monday. . He said many Utah lenders and businesses are still reporting that they have not been able to file claims.
This additional money was approved after the original $ 349 billion money was distributed in less than two weeks.
Reports have shown that sometimes the money goes to powerful or wealthy companies. Some, like Los Angeles Lakers chains Ruth Chris Steak House and Shake Shack, have pledged to repay their loans.
The New York Times found out this week that many companies have publicly said they received emergency loans after announcing earlier that they had secured large lines of credit that they said would allow them to survive. . Some have also taken over other businesses or paid large bonuses to executives by taking such loans. Some have received loans after conflict with the law.
McAdams complained that, according to Treasury Department fact sheets, borrowers must certify in good faith that their loan is necessary to support their business – and that a public company of value is unlikely. substantial market and access to capital markets will be able to do the required certification in good faith.
“This is not fair and it is not fair to thousands of hardworking Utah families,” McAdams said. “Taxpayers’ money must be spent the way taxpayers intended. These agencies must publish the list and provide a full account of how the money was distributed. “
Meanwhile, President Donald Trump’s campaign has shot McAdams for his position.
He released a statement saying McAdams “was nowhere to be found when her party leader Nancy ‘let them eat ice cream’ Pelosi blocked aid to help Utahns navigate global crisis and kill jobs in the process, “referring to the delays as Congress debated and negotiated an additional emergency package.
Samantha Zager, Regional Director of Communications for the Trump Campaign, said: “Ben McAdams can pretend he cares about small businesses, but the point is, he’s allowed Nancy Pelosi to delay critical funding for the protection program. paychecks that small businesses in Utah needed for 12 days. while thousands of Utahns have filed for unemployment.
McAdams replied that when the money from the first round had run out, “I immediately requested the re-authorization of this funding and worked hard to have it re-authorized. “
He added: “This is not about pointing fingers. It’s about making sure the money gets where it needs to be.