With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today .
SBA to Publicly-Traded Companies: Return Coronavirus Loans We Previously Let You Apply For
()
Over the past week, one publicly-traded company after another has been shamed into returing multimullion-dollar federal coronvairus stimulus loans.
That includes Irvine-based Kura Sushi, which received a $5.9 million loan despite having tens of millions of cash on hand and access to millions more through a loan from its majority stockholder, a Japanese company.
"This was a difficult decision because our employees are extremely important to us, but it’s impossible to ignore the fact that our finances allow us to weather financial hardship for a longer period than independent restaurant owners," CEO Jimmy Uba said in a statement late Wednesday. "We hope that these funds will be shared equitably among deserving candidates."
WHO'S RESPONSIBLE FOR ACCEPTING OFFERED CASH?
Support for LAist comes from
The culprit may be the Paycheck Protection Program (PPP) itself. That's the $349 billion loan fund Congress created as part of the Coronavirus Aid, Relief, and Economic Security Act.
It allowed some large, publicly-traded companies to qualify as small businesses.
Now, the Small Business Administration has changed course and is instructing publicly-traded companies to give back the money.
()
The SBA issued its new guidance today, as the House is voting to add another $310 billion to the program.
Our news is free on LAist. To make sure you get our coverage: Sign up for our daily coronavirus newsletter. To support our non-profit public service journalism: Donate Now.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The Newport Beach City Council approved a new artificial surf park that will replace part of an aging golf course. -
The utility, whose equipment is believed to have sparked the Eaton Fire, says payouts could come as quickly as four months after people submit a claim. But accepting the money means you'll have to forego any lawsuits. -
The City Council will vote Tuesday on a proposal to study raising the pay for construction workers on apartments with at least 10 units and up to 85 feet high. -
The study found recipients spent nearly all the money on basic needs like food and transportation, not drugs or alcohol. -
Kevin Lee's Tokyo Noir has become one of the top spots for craft-inspired cocktails. -
A tort claim obtained by LAist via a public records request alleges the Anaheim procurement department lacks basic contracting procedures and oversight.
Best of LAist