MSLP Fails Businesses, Kushner Family Clients Rake In Millions
This week, the Congressional Oversight Committee (COC), tasked with “overseeing how the Department of the Treasury and the Federal Reserve are utilizing specific taxpayer funds to provide economic stability as a result of the COVID-19 pandemic,” released a report on the Main Street Lending Program (MSLP).
The program was intended for mid-size businesses that were too big for the Paycheck Protection Program (PPP) and too small for corporate bonds, but so far there has been little interest from either creditors or borrowers to participate. The program’s funds have been so untouched that Bharat Ramamurti, former aide to Senator Elizabeth Warren and current member of the COC, called it a “failure” by any measure.
While mom-and-pop shops continue to call for help from the federal government, tech startups tied to Josh Kushner, the brother of President Trump’s senior aid Jared Kushner, received millions in taxpayer-funded relief. This news also comes as over 1,000 publicly-traded companies have been approved for loans and even more fraudulent PPP schemes come to life.
MAIN STREET LENDING PROGRAM FAILS TO EFFECTIVELY SUPPORT BUSINESSES
@BharatRamamurti | NEW: The latest Oversight Commission report is out.
It focuses on the Main Street program, which has bought only $472M in loans, or .07% of what the Fed touted in April.
The Commission did not have consensus on a solution, but my view is that Congress has to step back in. 1/ [View Twitter Thread]
KUSHNER FAMILY AMONG THE WEALTHY CASHING IN ON MILLIONS OF TAXPAYER MONEY
“A deep-pocketed venture-capital firm run by Jared Kushner’s brother watched some of its tech startups rake in millions of dollars in federal coronavirus relief loans — despite the fact that it urged them not to take the cash, The Post has learned.”
@Accountable_US | “Tech startups tied to Joshua Kushner went against advice and dipped into a program created to help mom-and-pop shops survive the #COVID19 pandemic. This is exactly why we called on the Trump administration to provide more oversight of the #PPP:” [View Tweet]
MORE THAN 1,000 PUBLICLY-TRADED COMPANIES APPROVED FOR PPP LOANS
The company, which returned a $10 million PPP loan it received in April under public pressure, disclosed it obtained the new loan in a filing Friday with the Securities and Exchange Commission. The loan was approved Aug. 7 — one day before the extended PPP program expired — through Harvest Small Business Finance, a California-based nonbank lender.
FRAUD, FRAUD, AND MORE FRAUD
In a complaint filed in Manhattan federal court, prosecutors said Sheng-Wen Cheng, 24, used others’ identities in applying for loans from five financial institutions through the Paycheck Protection Program and Economic Industry Disaster Loan Program, and managed to obtain $2.8 million of the more than $7 million he sought by the time he was arrested.