PPP loans were meant to help small businesses save jobs amid the pandemic. So why does official data show thousands of recipients retained zero jobs?
When Quest Food Management Services was approved for a forgivable federal loan to help it preserve jobs during the pandemic, the Lombard, Ill.-based company, which supplies meals to schools throughout the Chicago area, was so grateful that it issued a news release celebrating its ability to keep more than 830 people employed.But data released this week by the Small Business Administration detailing who received loans from the Paycheck Protection Program did not tie any jobs to Quest’s $5.3 million loan. Like tens of thousands of other loan recipients listed in the official government data, the...
Missing jobs data and disputed loan amounts cloud government records on $660B small-business bailout
PHILADELPHIA — Michael Schulson was thrown a lifeline by the federal government’s bailout for small businesses during the coronavirus pandemic. It helped him get almost half of his 178 employees back to work serving takeout customers and outdoor diners at his popular Sampan and Double Knot restaurants in Philadelphia’s Center City.So he didn’t know what to think when he saw his company listed in records released this week by the Trump administration as having received millions more than his actual award from the Paycheck Protection Program — while retaining no jobs at all.“I was a bit surprise...
The Philadelphia Inquirer
Kansas City payday loan tycoon to argue his billion-dollar fine to U.S. Supreme Court
KANSAS CITY — The U.S. Supreme Court on Thursday agreed to hear an appeal by Kansas City payday loan tycoon Scott Tucker that challenges the Federal Trade Commission’s authority to demand restitution, as the agency did in his case when it obtained a $1.3 billion order against him.Lower courts have issued mixed opinions about whether the FTC, a federal watchdog agency, can order people and businesses to return money they obtained from consumers through ripoff schemes.The Supreme Court consolidated Tucker’s appeal with another case that poses similar questions, which justices will hear during or...
The Kansas City Star
Quicken Loans files paperwork for IPO under name Rocket Companies
DETROIT — Quicken Loans, the nation’s largest mortgage lender, has filed paperwork with the U.S. Securities and Exchange Commission to move forward with taking the company public under the name Rocket Companies.Although the Detroit-based company has not yet announced the number or price of shares that would be offered on the New York Stock Exchange, experts have speculated an initial public offering by Quicken could raise tens of billions of dollars. No date was given for the proposed IPO.Under the proposal made public Tuesday, Quicken founder Dan Gilbert would retain a controlling stake in Ro...
The Detroit News
Detroit Will Breathe protesters make noise at Rocket Mortgage Classic
DETROIT — Detroit Golf Club wasn’t quiet on Sunday.The first three days of the PGA Tour’s Rocket Mortgage Classic, played without spectators, were so silent that third-round leader Matthew Wolff could hear an ice cream truck playing in the distance.Just before 3 p.m. Sunday, the noise level at the tournament increased as 75 or so protesters from “Detroit Will Breathe” showed up outside the main gates of the clubhouse, which is near the ninth green and 10th tee box.The demonstrators brought megaphones to protest against an “exclusive event” that shows how Mayor Mike Duggan and his administratio...
Detroit Free Press
EDITORIAL: Loans for SMEs timely
Reports that Equity Bank will get a Sh5 billion loan from the World Bank private enterprise arm IFC to lend to the small and medium businesses (SMEs) that have been slowed down by the coronavirus is a step in the right direction. Apart from the amount involved, it should go a long way in determining policies aimed at protecting the small businesses that, according State statistics, are the leading creators of jobs. Already the central bank has said these small businesses are in danger of collapsing under the weight of the disease that has brought the global economy to its knees.Under the virus...
Italy OKs big loans for Fiat Chrysler Automobiles to help deal with COVID-19 impact
The Italian government has signed off on approximately $7 billion in loan guarantees for Fiat Chrysler Automobiles in an effort to shore up a key piece of the country’s manufacturing sector amid the turmoil caused by the COVID-19 pandemic.FCA’s parent company is headquartered in The Netherlands with a corporate office also in London, but the company’s roots and impact on the economy in Italy run deep. FCA notes that it is Italy’s largest industrial group, and it directly employs 55,000 people at 16 plants and 26 research and development sites.The funding, according to an FCA announcement Wedne...
Detroit Free Press
81-year-old pharmacist whose business was decimated by recent looting vows to continue serving Chicago neighbors — as he has for nearly half a century
CHICAGO — In 1973, Howard Bolling secured a $55,000 loan and took a big chance.The young pharmacist had worked at Walgreens for years but was ready to go out on his own. A mentor helped him get the loan and find a pharmacy corner shop at 11254 S. Michigan Ave. that the owners wanted to sell.Friends told him he was crazy for wanting to open a Black-owned business in the then majority-white neighborhood of Roseland. In fact, the owners were looking to leave because the neighborhood was beginning to change.“You’re Black. You can’t go past 95th Street,” people told Bolling.Though fearful that he w...
Activists: Mnuchin’s Announcement Regarding PPP Loans Disappointing
Statement from Good Jobs First Regarding Treasury Secretary Mnuchin’s Announcement that Paycheck Protection Program Loans Will Not Be DisclosedQ1 2020 hedge fund letters, conferences and moreStatement from Good Jobs First Regarding Mnuchin's AnnouncementWashington, DC—Good Jobs First Executive Director Greg LeRoy today issued the following statement:“Secretary Mnuchin’s announcement is wrong by every measure and must not stand.Secretary Mnuchin is just flat wrong when he labels such data to be “proprietary” and “confidential,” suggesting that disclosure could somehow harm the recipients. In fa...
Alaska Air will cut thousands of jobs and shrink to survive coronavirus-induced downturn
SEATTLE — Alaska Airlines projects a slow recovery from the rapid decline in air travel caused by the coronavirus pandemic, and it’s preparing to shed as many as 3,000 jobs next year from its 23,000-strong work force.“Things will likely not go back to pre-COVID levels in the next 12 months,” said Alaska Air Group President Ben Minicucci in a video interview. “We see a smaller company in 2021. We see a smaller industry, in fact. We think we’ll be smaller by about 3,000 people.”In April, the government provided Alaska $992 million in relief aid as it doled out payroll-protection grants and loans...
The Seattle Times