The governor’s companies received $ 3 million in relief loans

The governor's companies received $ 3 million in relief loans

According to a recent report from the US government, companies affiliated with the California government have received nearly $ 3 million in federal debt, which is about eight times higher than originally reported, to help small businesses escape the plague. Nine businesses affiliated with NewSom’s Plumbjack Group have split nearly $ 9,99 million in debt through the Small Business Administration’s payroll protection plan, according to new figures released last week. Prior to taking office last year the governor placed his business shares in a blind faith, so he would not have participated in the decision to obtain the loans. Sean Malton, senior policy analyst who oversees project oversight, said it was a surprisingly large loan. The Independent Independent Monitoring Group monitors 6 1.6 trillion in total epidemic relief spending, the largest single project of the Check Protection Program. “It looks like a small business, but it made a lot of money. I do not know how the company can justify taking so much money when there are so many companies to help, “Malton said.” You believe they are using it wisely because there is an opportunity cost – use that money for another small business that is now out of business. He said that “NewSom certainly runs the risk of encountering some public perception issues about loans.” This is not something the governor needs now. He is already facing criticism for sending children to private schools for classroom learning in early November for dining with 10 civilians and others at an expensive French laundry restaurant in Napa in violation of his own rules. Plumb Jack spokesman Jeff Need said the money was for 358 employees and spread across all affiliated businesses. Like many businesses affected by the epidemic, companies used the money to “protect our workers and keep them employed.” He said the group was operating under federal guidelines and that “these funds are important for recruiting our staff and continuing our operations.” A plumbing company, Villa Ensign Partners Ltd. Partnership, received the largest loan of 18,918,720, but lists only 14 employees. For the debt to be forgiven, the corporation must have spent 60% of its three-month value on pay, which pencils an employee with an annual salary of close to $ 160,000. Dividing 60% of the total among 358 employees is the lowest, at 800 4,800 per employee. The second company received $ 80,680,000 and another over $ 500,000. The figure was first announced by ABC 7 News in San Francisco. It is not clear whether the company or its subsidiaries will seek to forgive the debt, if they spend so much on salaries, or if they exaggerate their loan applications during the frantic early months of the program, Malton said, because the federal reporting requirements are much lower. “Big loans, I always struggled to figure out how they fit into the overall idea behind the payroll plan,” he said. “It’s all about small businesses, it’s about hiring people, it’s about keeping their paychecks. We provide millions and millions of dollars. ”Newsom has been criticized by many in the business community for his aggressive strike orders, and he reiterated that he understands that he is a proud small businessman and entrepreneur, and that he understands the beliefs and dreams tied to business ownership and anger over the banning or prohibition of government action. Plumbjack was created in 1992 as a liquor and spirits store in San Francisco. “Before taking office, the governor controlled the title and businesses he established. Yum also turned to a blind foundation, a step beyond anything required by law, “Jesse Melker, NewSome’s communications director, wrote without elaborating. The Associated Press’s review of SBA’s initial credit data in July found that governors of at least eight states were among political leaders whose two political parties had ties to companies that received loans through the program. Plumjack Management Group LLC, a New Zealand wine and hospitality company, later announced a loan of 150,000 to 50,000 to 350,000, and retained 14 jobs thanks to the loan. The company is part of a portfolio of brands that includes a resort hotel, five restaurants and bars, four Napa Valley wineries, a sports retailer and more at the Squa Valley Ski Resort. Private banks have managed loans to expedite their distribution, which raises its own questions, he said. “An organization set up by the governor, they can be given special priority treatment – not because the governor asked for it, but because all contacts are there,” Malton said. Objects to oppose plans in Congress regardless of how the loans were used. “It’s a useful case to focus on because some high profile people are involved, but I think it’s a thousand times more than the country,” Malton said. “A lot of companies have received money.

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According to a recent report from the US government, companies affiliated with the California government have received nearly $ 3 million in federal debt, which is about eight times higher than originally reported, to help small businesses escape the plague.

According to new figures released last week, nine businesses affiliated with the New Som Plumbjack Group have split nearly $ 9.2 million in debt through the Small Business Administration’s payroll protection program. The governor placed his business shares in a blind faith before taking office last year, so he would not have participated in the decision to borrow.

Sean Malton, senior policy analyst who oversees project oversight, said it was a surprisingly large loan. The Independent Independent Monitoring Group monitors 6 1.6 trillion in total epidemic relief spending, the largest single project with a check protection program.

“It looks like a small business, but it made a lot of money. I do not know how the company can justify taking so much money when there are so many companies to help, “Malton said.” You hope they use it wisely because there is an opportunity cost – use that money for another small business that is now out of business. ”

Regarding loans, Newsom said it “certainly runs the risk of facing some public opinion issues.”

That is not something the governor needs now. He is already facing criticism for sending his children to private schools for classroom learning, as most of the public schools at the expensive French laundry restaurant in Napa were closed in early November and he ate with 10 lobbyists and others in violation of his own rules.

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Plumbjack spokesman Jeff Neat said the money was for 358 employees in all affiliated businesses.

Like many businesses affected by the epidemic, companies used the money to “protect our workers and keep them employed.” He said the group was operating under federal guidelines and that funding was “important for hiring our staff and continuing our operations”.

A plumbing company, Villa Ensign Partners Ltd. Partnership, received the largest loan of 18,918,720, but lists only 14 employees. In order for the debt to be forgiven, the corporation must have spent 60% of its three-month value on pay, which pencils an employee with an annual salary of close to $ 160,000.

Dividing 60% of the total among 358 employees brings in $ 4,800 per employee.

The second company received $ 80,680,000 and another $ 500,000. This figure was first reported ABC 7 News In San Francisco.

Whether the company or its subsidiaries seek to forgive debt, whether they spent so much on salaries, or whether they exaggerated loan applications in the frantic early months of the program, Moulton said, is because federal reporting requirements are so low.

“I have always struggled to figure out how big loans fit into the overall idea behind the payroll plan,” he said. “It’s all about small businesses, it’s about hiring people, their paychecks keep coming, but we’re giving these millions and millions of dollars.”

Newsom was criticized by many in the business community for its aggressive strike orders. He has repeatedly stated that he is a proud small entrepreneur and entrepreneur, and understands the beliefs and dreams associated with business ownership and his anger about banning or impeding government action.

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Newsum Plumbjack was created in 1992 after helping to find it as a wine and spirits store in San Francisco.

“Before taking office, the governor transferred the title and control of the businesses he established to a blind trust, a step that did not go beyond anything required by law,” Jesse Melker, Newsoman’s communications director, wrote in detail.

An Associated Press review of the SBA’s initial credit data in July identified governors of at least eight states, and included political leaders who linked the two political parties to companies that received loans through the program.

Plumbjack Management Group LLC, Newsom’s wine and hospitality company, later announced that it had borrowed between 150 150,000 and 350 50,000 to 350 350,000, and retained 14 jobs thanks to the loan. The company is part of a brand that includes a resort hotel, five restaurants and bars, four Napa Valley wineries, a sports retailer and more at the Squa Valley Ski Resort.

Private banks managed loans to expedite their distribution, which raises its own questions, he said.

“An organization set up by the governor can give them special priority treatment – not because the governor asked for it, but because all contacts are there,” Malton said.

That is why he opposes proposals in Congress to simply forgive debt no matter how it is used.

“It’s a useful case to focus on because some high profile people are involved, but I think it’s playing a thousand times over across the country,” Malton said. “There are a lot of companies that get paid. If you look closely enough, you may not understand the jobs they have.”

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About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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