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 HernLawmakers call for small business aid at all levels of government The Hill's Morning Report - Sponsored by Facebook - Washington on edge amid SCOTUS vacancy On the Money: Administration to ban TikTok, WeChat | House moves toward bill to avoid government shutdown | Coronavirus relief bills boosted GDP, CBO says MORE (Okla.), Mike KellyGeorge (Mike) Joseph KellyLieutenant governor: Trump campaign would get its 'clock cleaned' if it appeals Pennsylvania ruling to Supreme Court Pennsylvania Supreme Court strikes down GOP bid to stop election certification Pennsylvania Republicans sue in last-ditch effort to stop election certification MORE (Pa.) and Markwayne MullinMarkwayne MullinNext Congress expected to have record diversity Native Americans elected to Congress in record numbers this year Congress must protect kidney disease patients during the COVID-19 pandemic 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 CartwrightHouse Democrats pick Aguilar as No. 6 leader in next Congress Democrats to determine leaders after disappointing election The Hill's Campaign Newsletter: Election Day – Part 4 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 WilliamsBiden endorses Texas Democratic House candidate Julie Oliver Warren, Porter to headline progressive fundraiser supporting seven swing state candidates The Hill's 12:30 Report - Presented by Facebook - Yoho apologizes for accosting AOC 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 AllenThe Hill's Morning Report - Presented by the UAE Embassy in Washington, DC - COVID-19 fears surround Thanksgiving holiday Rep. Rick Allen tests positive for COVID-19 Lawmaker-linked businesses received PPP loans 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 RoyThe Hill's Morning Report - Too close to call Chip Roy fends off challenge from Wendy Davis to win reelection in Texas Democrats seek wave to bolster House majority 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 NunesBiden's Cabinet a battleground for future GOP White House hopefuls Overnight Defense: Trump loyalist to lead Pentagon transition | Democrats ask VA for vaccine distribution plan | Biden to get classified intel reports Ex-Nunes aide linked to Biden conspiracy theories will lead Pentagon transition 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 PelosiOvernight Health Care: Moderna to apply for emergency use authorization for COVID-19 vaccine candidate | Hospitals brace for COVID-19 surge | US more than doubles highest number of monthly COVID-19 cases House Democrats urge congressional leaders to support .1B budget for IRS Bipartisan Senate group holding coronavirus relief talks amid stalemate 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 TrumpGeraldo Rivera on Trump sowing election result doubts: 'Enough is enough now' Murkowski: Trump should concede White House race Scott Atlas resigns as coronavirus adviser to Trump 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.