- Three lodging companies chaired by
hotel executive Monty Bennett have received $59 million in Paycheck Protection Program (PPP )coronavirus relief funds intended for small businesses, the Wall Street Journal reported, effectively making Bennett the biggest winner in the small-business bailout. - On April 16, the PPP's $349 billion fund dried up with thousands of loan requests still pending.
- A provision in the PPP allows hospitality and restaurant companies with multiple locations to apply for loans as long as each location has 500 employees or less.
- While the
travel and hospitality industries have been most impacted by the coronavirus pandemic, larger companies have received backlash for accepting millions of dollars in loans before smaller, independent businesses could receive relief. - The House is expected to vote on a bill today that will provide an additional $320 billion for the PPP.
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A real-estate investment firm that invests in luxury hotel properties — including the Ritz-Carlton in St. Thomas — is one of three companies chaired by Dallas hotel executive Monty Bennett that received a collective $59 million in federal aid intended for small businesses, the Wall Street Journal reported.
The companies — Ashford Inc., a Dallas-based asset management firm, and the two real estate investment trusts it manages, Braemar Hotels & Resorts and Ashford Hospitality Trust — represent over 130 hotel properties.
In its review of public filings this week, the Wall Street Journal found that Ashford Inc. has received $12.8 million in loans; Braemar has been granted $15.8 million; and Ashford Hospitality Trust has received $30 million for its subsidiaries. While other large corporations have received millions, this trio of companies has collectively benefited the most — the $30 million granted to Ashford Hospitality Trust's subsidiaries was about eight times the average amount other public companies received, the Journal's analysis shows.
Due to a provision in the $349 billion Paycheck Protection Program (PPP) — part of the $2 trillion federal CARES Act — hospitality and restaurant companies with multiple locations are able to apply for loans as long as each location has 500 employees or less.
Last month, as the small-business bailout package was being negotiated, Bennett's companies hired two Trump-connected lobbyists, and Bennett made a $50,000 donation to Trump's joint fundraising committee, Business Insider's Tom LoBianco previously reported. (Representatives for Bennett did not return LoBianco's multiple requests for comment.)
Companies have been facing backlash for keeping coronavirus relief funds meant for struggling small businesses
Despite rightfully qualifying for aid within these parameters, large corporations such as Ruth's Chris Steakhouse have experienced backlash for holding onto the funds while thousands of small businesses that applied for loans did not receive funding. Bennett's companies secured more than Shake Shack (which returned its $10 million coronavirus stimulus loan) and Ruth's Chris Steak House combined.
The PPP ran out of funds on April 16, less than two weeks after launch. On Tuesday, the Senate passed a bill approving an additional $320 billion for the PPP. The House is expected to vote on the bill today.
In a White House briefing on Tuesday, Treasury Secretary Steven Mnuchin warned these companies of "severe consequences" if they take advantage of the program going forward, Business Insider's Graham Rapier reported.
"We want to make sure this money is available to small businesses that need it, people who have invested their entire