All About Richland

Governor’s Company Receives Loan From Virus Aid Program

7 Jul , 2020  

By FARNOUSH AMIRI Report for America/Associated Press

COLUMBUS, Ohio (AP) — A company partly owned by Ohio Gov. Mike DeWine is among those that received loans from a $600 billion-plus coronavirus aid program.

The data released Monday shows DeWine Seeds-Silver Dollar Baseball received a loan under the Small Business Administration’s Paycheck Protection Program for a range of $150,000 to $350,000.

The company owns the Asheville Tourists, a minor league baseball team in North Carolina, which was purchased by the governor’s family in 2010. DeWine’s son, Brian DeWine, currently serves as president of the baseball team.

DeWine, a Republican, was touted for his early, aggressive response to the virus, while also getting pushback for his actions’ effects on the economy.

An email seeking comment was sent to DeWine’s spokesman.

The Paycheck Protection Program is the centerpiece of the federal government’s plan to rescue an economy devastated by shutdowns and uncertainty. The program, which helps smaller businesses stay open and keep Americans employed during the pandemic, has been both popular and controversial.

Under the PPP, the government is backing $659 billion in low-interest loans written by banks. Taxpayer money will pay off the loans if borrowers use them on payroll, rent, and similar expenses. Companies typically must have fewer than 500 workers to qualify.

Demand was so great that the first infusion of $349 billion ran out in just two weeks. Many Main Street businesses couldn’t navigate the application process rapidly enough to get one of those first loans before funding dried up. Meanwhile, several hundred companies traded on stock exchanges — hardly the image of a small business — received loans maxing out at $10 million each, causing a public backlash and leading dozens to return the money.

Congress added $310 billion to the program, but confusing, shifting, and sometimes restrictive rules cooled interest. About $140 billion was unclaimed as the application deadline closed June 30.

With money still available, Congress voted to extend the program just as it was expiring, setting a new date of Aug. 8.

The public may never know the identity of more than 80% of the nearly 5 million beneficiaries to date because the administration has refused to release details on loans under $150,000 — the vast majority of borrowers.

That secrecy spurred an open-records lawsuit by a group of news organizations, including The Associated Press.

Still, the release of the data is the most complete look at the program’s recipients so far.
___
Farnoush Amiri is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Emphasis added.

Photo: AP/Report for America

, ,


Comments are closed.