Paycheck Protection Program
Reporting on problems and fraud stemming from the federal Paycheck Protection Program established to provide relief to business owners during the COVID pandemic.
The district handed out the money even without a written agreement as to how it would be used at the start of the pandemic, the inspector general said in a report released Monday.
Convicted scammer Lee Anglin was arrested last week at the Riviera Country Club, which reopened in June under new ownership with his wife as president after closing under another owner.
The bill goes to President Donald Trump for his signature, which is expected in the coming days.
The pending measure has no direct payments for the city of Chicago, the state of Illinois and other cash-starved local governments.
In Illinois, 12% of the businesses and nonprofits getting federal Paycheck Protection Program COVID-19 emergency relief loans gobbled up 74% of the cash.
Melissa Turasky, the owner of Gifford’s Kitchen and Social, used some of the Paycheck Protection Program money to make payments on her credit card, federal prosecutors say.
The privately run schools got the federal Paycheck Protection Program money though they also got their full funding from Illinois taxpayers, a Sun-Times analysis finds.
David Loundy, the chairman and CEO of the Devon Bank, said the PPP loans “helped a lot of people. Period, full stop.”
But none of the four major North American sports leagues — the NFL, NBA, NHL and Major League Baseball — were among the businesses that applied, according to the data.
The Treasury Department and the Small Business Administration released the names of employers getting more than $150,000 in Paycheck Protection Program loans.
The charges against Rahul Shah involve a $441,000 loan application to the Paycheck Protection Program.
The suit claims the entertainment provided by the strip club is non-obscene and should not be subject to the Small Business Administration’s rules against businesses of a “prurient sexual nature.”
Among the others were a clean-energy company in Cicero that told shareholders COVID-19 hadn’t harmed its business and the Gibsons steakhouse chain.
JPMorgan Chase told the Chicago Sun-Times as of Sunday afternoon the bank is ready to submit at least 150,000 completed loan applications Monday to the SBA.
“We are returning the PPP loan after further clarification from the Treasury Department,” the Chicago company said Saturday. “We will continue to seek alternatives to help support our employees and enable them to return to work so they can serve our loyal customers.”
The looming threat of financial loss is putting pressure on small-business owners citywide.
Congress approved another $320 billion for the COVID-19 loan program. The Glenwood Dance Studio in East Rogers Park is so far down the line, getting money is a long shot.
The House is expected Thursday to vote for $310 billion in a second round of Paycheck Protection Program funding; President Trump could sign the bill today.
Restaurant chains Shake Shack, Ruth’s Chris Steakhouse and Potbelly’s each announced last week they’d obtained loans worth a combined $40 million loans under the program.
“It leaves us stuck,” said David Loundy, the chairman and CEO of the 75-year-old family owned Devon Bank.
Republican and Democratic congressional leaders and the White House are negotiating a package to add billions to these shuttered Small Business Administration programs.
The loan leader under this new program is Texas, with 88,434 loans totaling $21.7 billion, according to the Small Business Administration.