Billionaire Kanye West Got a Multimillion-Dollar PPP Loan
Yeezy, the California-based fashion label run by Kanye West, managed to get a multimillion-dollar loan from the federal government's coronavirus stimulus package, Daily Beast reports. The U.S. Treasury’s Small Business Administration released records on Thursday and eagle-eyed analysts found Yeezy among the list of small businesses that are receiving funds from the Paycheck Protection Program (PPP), which is part of President Trump's lager CARES Act, which offers up economic relief during the coronavirus pandemic.
Records show that Yeezy was awarded a loan in the range of $2 million and $5 million and that the funds went to saving 160 jobs. The Daily Beast notes that California business records list West as the manager of Yeezy LLC, though it's not just a fashion house. It's a holding company established in Delaware and run out of La Palma, California. The Yeezy brand reportedly made $1.5 billion last year.
The PPP loan raises the issue of a conflict of interest. West has been an outspoken supporter of President Trump and has made multiple trips to the White House. According to Forbes, West officially became a billionaire back in April. PPP loans, which are intended for companies with fewer than 500 employees, are generally written off by the government if the companies that qualify spend the money on eligible costs and also retain a certain amount of staff. A complete list of the 40,000 companies that received loans of $150,000 and above was made public today.