Chinese state-funded electric car makers Yeezy Burning Man among companies that received PPP loans

TOP LINE

Chinese government-backed electric vehicle companies and German audio equipment maker Sennheiser are among the companies that have received $ 150,000 or more in loans under the Paycheck Protection Program (PPP), according to a listing released Monday by the U.S. Treasury Department and Small Business Administration, with two right-wing nonprofits opposing government spending, billionaire Kanye West’s Yeezy clothing brand and the Burning Man Festival.

HIGHLIGHTS

Chinese electric vehicle startups Byton, Nio and Karma Automotive were among the companies that received PPP loans between $ 5 million and $ 10 million, the Edge reported first.

Byton – which is backed by Chinese state automaker First Auto Works – said in its request that the loan would help it keep 387 jobs, but last week the company laid off workers at its northern headquarters -american and interrupted operations for at least six months.

Nio, who in February had has received About $ 1 billion in bailout from a municipal government agency in China, got its P3 loan in April, saying the money would help protect 204 jobs at its North American headquarters.

Chinese automaker Chang’an Automobile’s US research and development center also received between $ 350,000 and $ 1 million.

German audio equipment maker Sennheiser, which received at least $ 2 million, said the loan was intended to help it retain 128 jobs, less than 5% of its global workforce, the Edge reported separately.

Bird, an electric scooter company, was listed to have received a loan worth between $ 5 million and $ 10 million from the program, but the company tweeted that it was “listed in error” and did not filed an application.

Likewise, Silicon Valley venture capital firm Index Ventures, which is also listed as receiving between $ 2-5 million, also tweeted that he had been “listed in error” and that his legal team is looking into the matter.

ZocDoc online healthcare booking service has been listed as receiving between $ 5 million and $ 10 million, but the company Recount the the Wall Street newspaper that the company decided to return the money after its business quickly recovered.

Others on the list included Kayne West’s clothing brand Yeezy, the Burning Man Festival, and two small government advocacy groups: the Ayn Rand Institute and Grover Norquist’s Americans for Tax Reform Foundation.

According to the government, $ 7.3 billion in loans went to religious organizations, as well as about $ 6.2 billion to other types of nonprofit organizations, the Journal report added.

Key context

The PPP disclosure lists over 661,000 small businesses and nonprofits that have received at least $ 150,000 in funding. The Washington post Remarks that the list discloses less than 15% of the total number of loans issued under the program, however, it is the most detailed disclosure to date about the massive economic stimulus package that has been launched by the federal government under the $ 2 trillion Cares Act. In the press release announcing the disclosure, Treasury Secretary Steve Mnuchin said the loans supported more than 51 million jobs and more than 80% of all small business employees. According to the data published According to the SBA, the healthcare sector was the largest recipient of PPP loans, obtaining around 13%, followed by professional services, construction and manufacturing, which each received more than 10% of the funds. Among states, California tops the list with $ 68 billion, Texas companies received $ 41 billion, New York-based entities received $ 38 billion, and Florida companies received $ 32 billion. billions of dollars.

Disclosure: Forbes Media has been approved to receive between $ 5 million and $ 10 million in PPP funds.


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