Lakers received and then returned millions in federal COVID-19 loans


The Los Angeles Lakers announced on Monday that they had returned the $ 4.6 million received from the federal paycheck protection program, while hundreds of thousands of small businesses received no relief from the botched bailout, ESPN Reports.

Although the team is technically qualified for the loan under Small Business Administration guidelines because it has fewer than 500 employees, the Lakers said they returned the money after news broke that powerful brands with a lot of money had helped deplete the program’s initial $ 349 billion fund in just two weeks as legitimately struggling companies went bankrupt.

“The Lakers qualified and received a payroll protection loan loan,” the team told ESPN. “Once we found out that the program funds had run out, we repaid the loan so that financial support was directed to those who needed it most. The Lakers remain fully committed to supporting both our employees and our community.

Many small operations got nothing from the first round of loans because the application process was so complicated, while the top companies had friendly and powerful bankers to help them get to the front of the line.

For example, restaurant chains Shake Shack and Belly return $ 10 million each in PPP loans following public derision, while Fortune 500 player AutoNation returns his $ 77 million SBA windfall.

Likewise, Harvard, Yale, Stanford and Princeton have all rejected millions of federal aid, while USC insists he must retain his $ 22 million government allocation against coronaviruses.

With an estimated value of $ 4 billion before the pandemic hit and a broadcast deal of $ 150 million a year – the NBA’s largest – the team are still at risk of losing tens of millions of dollars with questionable playoffs, but she can ask for up to $ 325. million loans from the league itself. Sources tell ESPN the Lakers will pursue this option.

Meanwhile, businesses hoping to get help with a second round of loans suffered another blow on Monday as Small Business Administration website crashed on day one, the paycheck protection program reopened.

RELATED: As insurance claims denied, classic LA restaurants struggle to survive pandemic

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