Large, Troubled Companies Got Bailout Money in Small-Business Loan Program
“A company in Georgia paid $6.5 million to resolve a Justice Department investigation — and, two weeks later, received a $10 million federally backed loan to help it survive the coronavirus crisis.
“Another company, AutoWeb, disclosed last week that it had paid its chief executive $1.7 million in 2019 — a week after it received $1.4 million from the same loan program. And Intellinetics, a software company in Ohio, got $838,700 from the government program — and then agreed, the following week, to spend at least $300,000 to purchase a rival firm.”
Now, before we get the tar warmed up and gather feathers, the WSJ ($) comes to the defense of Big Bidness:
“Politicians shut down the economy, denying business customers and revenue, without a plan to finance the shutdown. Then they rushed to set up programs with vague rules that businesses used in good faith, and now the politicians punish the businesses for following the rules that politicians established.
“Ruth’s Chris and Shake Shack were the first targets, but Treasury is showing that anyone is vulnerable if the media singles you out. All of this bodes ill for the economic recovery, as politicians blame business for their own coronavirus mistakes.”
So, let’s add the WSJ Editorial Board to the tumbrils, shall we?