Economy
Companies linked to Gov. Newsom received nearly $3 million in PPP loans
At least eight companies affiliated with California Gov. Gavin Newsom collectively received millions of dollars from the coronavirus-related Paycheck Protection Program (PPP), according to reports released by the US government and analyzed by ABC7.
In 1992, Newsom founded the company “PlumpJack,” and under his leadership, the PlumpJack Management Group LLC grew to include five restaurants and bars, four Napa Valley wineries, a ski resort and retail establishments, according to PlumpJackWinery.com.
The newly-released reports indicate that the PlumpJack companies received $2.9 million dollars through the Small Business Administration’s Paycheck Protection Program.
According to reports by the SBA, one company received a loan for $918,720 on April 14, 2020. The SBA requires at least 60% of the loan be used to cover employee wages. This company had 14 employees. Hypothetically, if divided equally, each employee would received around $40,000 to cover their salary over a three month period – that would amount to an annual salary of around $160,000 per employee.
Sean Moulton, a senior policy analyst with Project on Government Oversight specializes in tracking PPP funds.
“It’s unexpected for a 14 employee organization to get nearly $1 million,” he said. “The purpose behind this program was to save entry-level jobs, people going in and working on that paycheck. That was what we put this out there for, to stop unemployment.”
On average, the small business loan for California companies with 14 employees was around $128,000. A PlumpJack company that also had 14 employees received more than seven times that amount at $918,720.
The PlumpJack Managment Group released a statement to ABC7, “”Like many other companies facing extreme financial duress during the pandemic, we used loan monies to protect our workers and keep them employed. Our staff members and their loved ones have depended on these programs for their livelihoods. Gavin Newsom is not affiliated with the operation of the companies in any way. Any suggestion otherwise is unequivocally false,” said Jeff Nead, spokesperson for the PlumpJack Management Group.
Newsom put his business holdings into a blind trust before he took office last year and is not affiliated with the operations of the companies, however, he is listed as the founder on the website and his sister, Hilary Newsom, is listed as the company’s President and Partner.
You can follow Annaliese Levy on Twitter @Annalieselevy
New York City Mayor Eric Adams has unveiled a new plan to potentially place thousands of asylum seekers in private residences while compensating local homeowners and landlords.
During a City Hall press conference, Mayor Adams expressed his vision to move beyond housing single migrant men in churches and mosques and explore the option of utilizing private dwellings.
Adams emphasized the potential savings that could be achieved by redirecting the estimated $4.3 billion budget for housing the influx of migrants into everyday houses of worship and private residences, rather than corporate entities. The mayor suggested that recycling local dollars would benefit both the city and its residents.
According to reports from the New York Post, Adams said, “It is my vision to take the next step to this faith-based locales and then move to a private residence.”
“We can take that $4.2 billion — $4.3 [billion] maybe now — that we anticipate we have to spend and we can put it back in the pockets of everyday, everyday houses of worship instead of putting it in the pockets of corporations.”
“We should be recycling our own dollars,” he continued.
Acknowledging potential obstacles, Adams alluded to a “30-day rule” that City Hall would need to overcome. However, he did not provide further details on the rule or the aspects of implementing the plan.
With over 72,000 individuals having arrived in New York City since last spring, the mayor stressed the urgency of finding sustainable housing solutions beyond taxpayer-funded emergency shelters and hotels. The current system, which accommodates approximately 45,000 people, is deemed unsustainable given the continuous influx of migrants.
Adams indicated that the city would seek ways to bypass existing government regulations that prohibit housing homeless individuals in private homes. Additionally, City Hall aims to work with the state legislature to facilitate agreements that bring illegal basement apartments up to code, presenting a more affordable and viable housing alternative.
The estimated cost of the ongoing crisis is expected to exceed the current $4.3 billion budget, particularly as daily arrivals continue to increase. Last week alone, the city registered 2,200 new arrivals. To address cost concerns, Adams’ proposal to house asylum seekers in houses of worship is projected to cost approximately $125 per night, significantly less than the current expenditure of $380 per night in converted hotels.
Mayor Adams’ plan to utilize private residences represents a significant development in New York City’s efforts to address the housing needs of asylum seekers. However, the feasibility and implementation of this proposal, including overcoming legal and logistical challenges, remain to be seen.
Follow Alexander Carter on Twitter @AlexCarterDC for more!
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