Lawmaker-linked businesses received PPP loans

Lawmaker-linked businesses received PPP loans
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Several businesses with ties to lawmakers received loans under the Paycheck Protection Program (PPP), according to examinations of data released Monday by the Small Business Administration (SBA).

Among the lawmakers whose businesses received loans were GOP Reps. Kevin HernKevin HernDemocrats hurt small business when they attack Big Tech Five takeaways from PPP loan data Lawmaker-linked businesses received PPP loans MORE (Okla.), Mike KellyGeorge (Mike) Joseph KellyMultiple lawmakers self-quarantine after exposure to Gohmert Gohmert tests positive for COVID-19 Trump may have power, but he still has no plan to fight the pandemic MORE (Pa.) and Markwayne MullinMarkwayne MullinGeorgia strengthens democracy, moves closer to NATO with US support Five takeaways from PPP loan data Lawmaker-linked businesses received PPP loans MORE (Okla.).

KTAK Corp., a company owned by Hern that has several McDonald's franchises, received a loan between $1 million and $2 million. Kelly, who owns several car dealerships, has entities that received loans between $150,000 and $350,000. Mullin owns several plumbing businesses that received loans totaling between $800,000 and $2 million, according to The Hill's examination of the SBA data.


The Washington Post and Politico previously reported on the ties between the three lawmakers and PPP recipients.

A Scranton, Pa., law firm where Rep. Matt CartwrightMatthew (Matt) Alton CartwrightRepublicans face worsening outlook in battle for House Cook shifts 20 House districts toward Democrats Five takeaways from PPP loan data MORE (D-Pa.) worked for 25 years and maintains a retirement plan received a loan between $350,000 and $1 million. Rep. Roger WilliamsJohn (Roger) Roger WilliamsThe Hill's 12:30 Report - Presented by Facebook - Yoho apologizes for accosting AOC Ocasio-Cortez accosted by GOP lawmaker over remarks: 'That kind of confrontation hasn't ever happened to me' Cook shifts 20 House districts toward Democrats MORE (R-Texas) owns several car dealerships in North Texas through his company, the JRW Corporation, which received between $1 million and $2 million.

Rep. Rick AllenRichard (Rick) Wayne AllenLawmaker-linked businesses received PPP loans Child care advocates press Congress to help families cope with costs Oregon quits federal family planning program over new abortion restrictions MORE (R-Ga.) is the founder of a construction company that received between $350,000 and $1 million, though spokeswoman Andrea Porwoll said the congressman relinquished his majority stake years before he became a lawmaker and his office consulted with the House General Counsel on the company’s eligibility for the loan. His wife is listed as a partner on the company’s website, but Porwoll said she has no decision-making authority at the firm.

Rep. Chip RoyCharles (Chip) Eugene RoyRepublicans face worsening outlook in battle for House The Hill's Campaign Report: Biden builds big lead in battleground Florida Internal Democratic poll shows tight race in key Texas House district MORE (R-Texas) and his wife have a fractional stake in Atlas Sand Co., which received between $2 million and $5 million. A spokesperson said neither have decision-making authority.

Congressional offices for Hern, Kelly, Mullin, Cartwright, Allen and Roy said they were not involved in day-to-day operations of the companies and had no involvement in procuring the PPP loans.


Rep. Devin NunesDevin Gerald NunesSunday shows preview: White House, congressional Democrats unable to breach stalemate over coronavirus relief The Hill's Campaign Report: US officials say Russia, China are looking to sow discord in election The Hill's Morning Report - Presented by the Air Line Pilots Association - Negotiators 'far apart' as talks yield little ahead of deadline MORE (R-Calif.) disclosed in an Ethics Committee filing last year that he is a limited partner in two California wineries, each of which received a PPP loan between $1 million and $2 million.

Spokespeople for Nunes and Williams did not respond to a request for comment. 

A business linked to the husband of Speaker Nancy PelosiNancy PelosiPelosi, Schumer slam Trump executive orders, call for GOP to come back to negotiating table Trump signs executive orders after coronavirus relief talks falter Sunday shows preview: White House, congressional Democrats unable to breach stalemate over coronavirus relief MORE (D-Calif.) received a PPP loan. Pelosi spokesman Drew Hammill told The Hill that the Speaker’s husband, Paul Pelosi, only has an 8.1 percent stake in the company.

“Mr. Pelosi is a minor, passive investor in this company,” Hammill said. “He was not involved in or even aware of this PPP loan.”

Businesses with links to members of Congress are not prohibited from receiving PPP loans. But the news that companies linked to lawmakers received loans comes as the program has been receiving scrutiny about whether it is helping the small businesses in most need of assistance.

The SBA in April issued guidance that allows lawmakers and other federal officials to obtain loans without going through a review aimed at preventing conflicts of interest.

The PPP, created by legislation President TrumpDonald John TrumpDeWine tests negative for coronavirus a second time Several GOP lawmakers express concern over Trump executive orders Beirut aftermath poses test for US aid to frustrating ally MORE signed in March, is aimed at helping small businesses retain their employees during the coronavirus pandemic. Under the program, small businesses and nonprofits can receive loans that the federal government will forgive if employers use the money for payroll and other key expenses and maintain employee and compensation levels.

The SBA, in consultation with the Treasury Department, released data on Monday about recipients of loans for $150,000 or more. The agency also released information about loans under $150,000 that did not include the names of recipients.

The list of recipients for the largest loans shows that a wide variety of groups have received aid through the PPP, including health care organizations, restaurants, private schools, media companies and lobbying groups.

James Bikales contributed. Updated at 5:21 p.m.