Nearly M 3M government for small businesses among epidemics was founded by Gov. News, data shows

Nearly M 3M government for small businesses among epidemics was founded by Gov. News, data shows
SAN FRANCISCO (KGO) – According to ABC 7 analysis, at least eight companies have received millions of dollars from Govin Newsom, a partially owned security check program.

Although data released by the Small Business Administration earlier this year showed that the Plumbjack Group had 50,000 to 350,000 PPP loans, new data released by the SBA showed that Plumbjack businesses – including wineries, bars and restaurants – received nearly three million more than that amount. .

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In 2018, the government placed its owner interests in the NewSom, Plumbjack group in a blind faith. This means that he will have no knowledge or role in the business decisions of the company taken during his tenure.

Digs up data

The ABC7 i-Team found discrepancies between the company’s SBA data and publicly available records, which raises questions about how much money some companies received under the program.

At least nine companies affiliated with the Plumbjack Group received PPP loans, according to ABC7.

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One of the companies on this list is Villa Ensign Partners Limited Partnership. State records indicate that the name was discovered for the Plumbjack wine plant in Napa. San Francisco billionaire Gordon Getty is an investor.

The company borrowed 18,918,720 on April 14, 2020, according to SBA data.

For debt to be forgiven, the SBA must use at least 60 percent of their paycheck. Based on SBA data, Villa Angel Partners retains LP14 employees. Assuming, evenly divided, they would each receive approximately 000 40,000 to cover their wages over a three-month period – an annual salary of $ 160,000 per employee.

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Sean Malton, a senior policy analyst with Project Oversight (POGO), said it was “unpredictable to get nearly 1 million per 14 employee organization”. Specializes in monitoring PPP funds. “The entry level jobs in the background of this project is to get people to go in and save that paycheck. We put this in there to stop unemployment.”

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The average small business loan for California companies that retain 14 employees is approximately 8,000 128,000. Nevertheless, Plumbjack retained 14 employees, according to Villa Ensign Partners LP – SBA data – for 18,918,720, more than seven times that amount.

ABC 7’s analysis found that the only California winery close to the same loan amount as Villa Ensign Partners LP was Oak Knoll Farming Corp, which retained 79 employees – five times more than Villa.

The average number of employees retained for each California winery, which received more than $ 900,000 in PPP funding, is 148.

Related: 22 Bay Area companies hold $ 52 million in federal funding for small businesses amid epidemics

Milbray Pancake House borrowed $ 431,400 to retain 53 employees. In a comparison, this is less than half of what the villa received and Burke retained almost four times the number of employees.

“It seems unfair, because small family businesses like us need that money,” said restaurant owner Erin Burke.

After 60 years of operation, Burke was forced to close his family-owned business on November 29.

“We try to survive by doing what we can,” he said. “That money is not enough.”

The San Francisco Chamber of Commerce reports that the vast majority of small businesses that have difficulty obtaining PPP loans do not have adequate credit or misunderstand the owner’s application.

“I think it’s heartbreaking,” said Jae Cheng, the organization’s director of public policy. “We see big contradictions between small businesses and the loans they get, their ability to get loans, big companies that are well-off and well-functioning and have strong relationships with their banks.”

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Another company affiliated with the Plumbjack Group is Balboa Cafe Partners LP, which received 6,506,799 loans on April 29, 2020. Balboa Cafe Partners is a business data company estimated to have employed seven people in June 2020, but the SBA data associated with their loan application states that they retained 55 employees.

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The plumbjack panel responds

ABC7 approached the Plumbjack Management Group to clarify how nearly $ 3 million of PPP funding was spent.

We received the following report:

“Like many companies facing a serious financial crisis during epidemics, we used credit to protect our workers and employ them. Our employees and their loved ones have relied on these programs for their livelihoods. Gavin Newsom is by no means affiliated with companies. Said Jeff Need, spokesman for the Plumbjack management team.

Government Newsom is not linked to government news because his interests are in blind faith. However, he is the founder of the website and his sister Hillary is listed as the president and partner of NewSom.

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According to the Governor’s 2019 Economic Interest Report, the NewSom owner is interested in eight companies affiliated with PPP – funded Plumbjack.

Colmeters The governor’s 2018 tax revenue reveals that he and his wife earned $ 1.2 million from wages and investments – most of which stem from his efforts in alcohol and hospitality.

ABC7 is requesting payroll records for a second time to see how each of the 14 employees of Villa Ensign Partners was paid.

We received the following report:

“The Plumbjack management team operates within the federal guidelines developed for COVID-19 SBA borrowers. These funds are important for hiring our employees and continuing our operations. We have done anything outside the guidelines (or we have filed for debt forgiveness). Said.

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If the Plumbjack Group wants to do so it will take two to five years to apply for a debt forgiveness. This means that the company does not have to repay these loans.

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But to any company that apologizes, “they have to certify when they apply that they have retained their employees,” SBA Regional 9 Communications Director Miriam Barajas said. “It involves the filing of payroll records and filing of documents, and there is a lot of evidence to prove that these businesses paid their employees.”

If companies do not want to forgive debt, they will have to repay it – but these companies still benefit.

“They were able to benefit from this very low interest rate offered by the government,” said Daniel Bryan, executive director of the government oversight program. “These are one percent loans … it’s free money for them.”

The ABC7 government approached Newssoma to comment further on the story, but has not yet been asked.

In total, nearly $ 16.8 billion in PPP funding went to more than 130,000 companies across the Bay Area. The average number of retained employee companies is 10.

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