As much as US$273 million in federal COVID-19 aid was awarded to more than 100 companies that are owned or operated by major donors to US President Donald Trump’s election efforts, according to an Associated Press analysis of federal data.
Many were among the first to be approved for a loan in early April, when the administration was struggling to launch the lending program.
Only eight businesses had to wait until early May before securing the aid, according to the AP’s review of data released on Monday.
Photo: Reuters
The Trump-connected companies obtained the aid through the Paycheck Protection Program (PPP), which extends a lifeline to small businesses struggling to navigate the pandemic.
Fast-food chains such as Muy Brands, oil and gas companies, and white-collar firms were all granted a slice of more than US$659 billion in low-interest business loans that are to be forgiven if the money is used on payroll, rent and similar expenses.
All told, the Trump supporters who run these companies have contributed at least US$11.1 million since May 2015 to Trump’s campaign committees, the Republican National Committee and America First Action, a super PAC (political action committee) that has been endorsed by Trump, the review found.
Each donor gave at least US$20,000.
There is no evidence the companies received favorable treatment as a result of their ties to Trump, and the businesses account for just a fraction of the overall spending under the program.
However, the distribution of relief money is coming under heightened scrutiny after the Trump administration initially refused to reveal which companies received loans, only to cave under growing bipartisan pressure from the US Congress.
On Monday, the US Department of the Treasury released the names of companies that received loans that were greater than US$150,000, though it did not release specific dollar figures and instead gave ranges for the dollar value of the aid.
Among the recipients was the conservative Web site NewsMax, which was approved for a loan up to US$5 million on April 13, the data show. NewsMax chief executive Christopher Ruddy has donated US$525,000 to political committees supporting Trump, records show.
Muy Brands, a San Antonio, Texas-based company that operates Taco Bell, Pizza Hut and Wendy’s franchises, was approved for a loan worth between US$5 million and US$10 million.
Its owner, James Bodenstedt, has donated US$672,570 to Trump since 2016, records show. The company did not respond to a request for comment.
“The PPP was a huge success and saved 51 million American jobs, including at [former US president] Joe Biden’s old law firm and many companies associated with [former US president Barack] Obama administration alums,” Trump campaign spokeswoman Samantha Zager said. “When the rent or mortgage was due, tens of millions of Americans kept receiving paychecks thanks to President Trump’s leadership.”
Government watchdog groups say they have little faith in the administration conducting oversight of the program, noting Trump has ousted numerous inspectors general and has broadly resisted efforts to add transparency.
“When you don’t have proper safeguards, such as timely disclosure and effective inspectors general, then all these things look more suspicious and raise more questions,” said Larry Noble, a former general counsel at the US Federal Election Commission. “When you see these people getting assistance quickly and they have contributed to the campaign, then it is going to raise questions.”
Companies typically must have fewer than 500 workers to qualify for the Paycheck Protection Program.
About US$130 billion was unclaimed as the application deadline closed on Tuesday last week. With money still available, Congress voted to extend the program to Aug. 8.
The public might never know the identity of more than 80 percent of the nearly 5 million beneficiaries to date because the administration has refused to release details on loans under US$150,000.
That secrecy spurred an open-records lawsuit by a group of news organizations, including the AP.
Trump donors are not the only people with ties to the president who have benefited.
US Secretary of Transportation Elaine Chao’s (趙小蘭) family’s business, Foremost Maritime Co, was cleared for a loan valued between US$350,000 and US$1 million. She is married to Senate Majority Leader Mitch McConnell.
Forty lobbyists with ties to Trump also helped clients secure more than US$10 billion in aid, among them five former administration officials whose work potentially violates Trump’s own ethics policy, according to a report on Monday by the watchdog group Public Citizen.
The lobbyists either worked in the Trump executive branch, served on his campaign, were part of the committee that raised money for inaugural festivities or were part of his presidential transition. Many are donors to Trump’s campaigns, and some are prolific fundraisers for his re-election.
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