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While the government’s $349 billion small business lending program was meant to help smaller mom & pop entities stay afloat as coronavirus lockdown orders continue, an analysis by NBC News found that three companies with ties to President Trump’s administration received a total of $18.3 million under the program.
“Another recipient received a loan from a bank that previously employed its board’s chairwoman. Four companies received more than the $10 million maximum by applying for multiple loans through subsidiaries. Four other companies receiving more than $20 million in aggregate have wealthy investor board members in common,” NBC News’ Gretchen Morgenson and Rich Gardella and Andrew W. Lehren write.
The program ran out of funds on April 16, just under two weeks after it was rolled out. While untold numbers of small business owners applied for assistance, many got nothing.
“At least 15 companies that reported receiving money under the program have stock market values of at least $100 million, according to a report from Morgan Stanley — even though Treasury Secretary Steven Mnuchin said Tuesday the program was not meant to benefit ‘big public companies that have access to capital,'” the report reads.
Read more over at NBC News.