When Congress approved the CARES Act in March, it allocated $669 billion to the Paycheck Protection Program (PPP), a line of credit designed to assist smaller firms in meeting their payroll obligations.
Although the PPP was initially intended for Main Street enterprises, it was not difficult for some well-connected enterprises and persons to come up with ways to participate. This also includes a slew of well-known individuals who have been able to acquire loans via the PPP regardless of the fact that they were not small companies.
The PPP was designed to assist smaller companies in keeping their staff members on the payroll and preventing them from needing to cut staff or permanently shut down. Nevertheless, the PPP has recently attracted criticism after it was disclosed that a handful of major corporations and famous people obtained loans via the program.
Numerous celebrity enterprises which include Hollywood celebrities as well as individuals of the Kardashian family applied for and were certified for financial assistance by the Department Of Treasury. As initially disclosed by experts, multiple reports discovered that at least multitudes of huge, publicly traded businesses received PPP loans.
Experts claim that the PPP wasn’t ever meant for large corporations or wealthy individuals and that the funds ought to have passed to smaller companies that were genuinely battling for survival. Several members of congress demanded an independent inquiry into how the PPP was managed and whether any of the loans ought to be paid back.
The line of credit is unique in that it is completely forgiven if at least 60% of the funds are utilized for employee wages, considering that it was crafted primarily to avoid job cuts during a period of historically high unemployment.
List of Celebrities That Got the PPP Loan
- The band Pearl Jam
- Gwyneth Paltrow
- Tyler Perry
- Seth Rogen
- Yeezy West
- Reese Witherspoon
- Celine Dion
- Billy Joel
- Oprah Winfrey
- “The Rock” Dwayne Johnson
- Author of the “Rich Dad, Poor Dad” Series, Robert Kiyosaki
- Khloe Kardashian
- Barbra Streisand
- Bruce Springsteen
- Arnold Schwarzenegger
- Kylie Jenner
- Basketball player LeBron James
- Rita Wilson and Tom Hanks
- Jeff Koons
Malibu Entertainment, a corporation affiliated with Jay-Tidal Z’s streaming platform, was validated for a PPP loan ranging from $2 million to $5 million. According to a source, the corporation obtained $2.1 million. Jay-Z is not listed as a direct operator or executive at Malibu Entertainment.
However, previous official documents indicate that the organization previously shared the same contact information as Tidal as well as another Jay-Z-owned corporation, Roc Nation. As per Variety, numerous Tidal workers claim to be paid by Malibu Entertainment as well.
The band Pearl Jam
Pearl Jam’s touring group got a loan ranging from $350,000 to $1 million in order to maintain its 28 staff members on the payroll. As per Rolling Stone, a variety of other touring artists, notably Weezer, The Eagles, Guns N’ Roses, and Green Day, were likewise authorized for PPP loans.
Maverick, Madonna’s company, obtained a $1.1 million PPP loan. The financing was used to cover her workers’ wages as well as many other obligations.
Goop, Gwyneth Paltrow’s company, obtained a $145,000 PPP loan. The financing was utilized to finance her workers’ wages as well as many other bills.
Tyler Perry Studios, Tyler Perry’s production house, obtained a $3 million PPP loan. The line of credit was utilized to settle his workers’ wages in addition to other overheads.
Point Grey Pictures, Seth Rogen’s film company, gained a $1.8 million PPP loan. This cash was utilized to cover his workers’ wages in addition to various expenditures.
Yeezy, the superstar rapper’s clothing and sneaker brand, obtained a credit line ranging from $2 million to $5 million. The total amount is insignificant in comparison to the brand value of Yeezy, which Bloomberg indicates to be worth at least $3 billion.
The West-owned company made $1.3 billion in sales the year before. Yeezy hired 106 individuals in mid-February, prior to the disease outbreak, making it qualified to submit for the PPP initiative, which was accessible to businesses with 500 or lesser staff members.
The Oscar winner’s clothing line, Draper James, obtained a $350,000 to $1 million federal loan. Prior to the disease outbreak, the business hired 44 people.
ATOZ Productions, Celine Dion’s management company, obtained a $1 million PPP loan. The cash was utilized to cover her workers’ wages as well as other expenditures.
Faegre Baker Daniels, Billy Joel’s management company, obtained a $1 million PPP loan. The cash was employed to finance his workers’ wages as well as other bills.
Harpo Productions, owned by Oprah Winfrey, acquired a $1 million PPP loan. The cash was utilized to fund her workers’ salaries as well as other obligations.
“The Rock” Dwayne Johnson
Dwayne Johnson was among the first famous people to publicly admit to receiving a PPP loan. He did so to entice other smaller companies to submit applications for the program. He as well implored Congress to pass additional laws to assist smaller companies in surviving the global epidemic.
The best-selling financial planning author, who has been an enthusiastic investor, received a loan of around $350,000 and $1 million for his company, Rich Dad Operating Co., which hires 11 people.
The news surprised many people since Kiyosaki had already long been quite a staunch opponent of the federal stimulus plan. In a Twitter post on April 2, a day before the PPP framework launched, he referred to the scheme as “socialism for the rich.”
Kanye West’s former sister-in-law Khloe Kardashian, who is worth $40 million according to Money magazine, was a recipient of the PPP scheme. Good American, the reality star’s clothing line, obtained a line of credit of around $1 million and $2 million.
Barbra Streisand’s production company, Barwood Films, has obtained a $1 million PPP loan. The credit was utilized to cover her workers’ wages as well as other expenditures.
Jon Landau Management, Bruce Springsteen’s management firm, obtained a $1 million PPP loan. The loan seems to have been employed to cover his workers’ wages as well as other expenditures.
Oak Productions, Arnold Schwarzenegger’s production company, obtained a $2 million PPP loan. The loan was utilized to cover his workers’ wages as well as other expenditures.
Kylie Jenner, the world’s youngest multimillionaire, obtained a PPP loan as well. She accomplished this via her firm, Kylie Cosmetics. The loan was utilized to stump up her firm’s workers’ wages and mortgage.
Basketball player LeBron James
Maverick Carter, LeBron James’ business partner, disclosed that their organization, Uninterrupted, had obtained a PPP loan. The credit was employed to pay the corporation’s workers and to cover other fees.
Rita Wilson and Tom Hanks
Tom Hanks and Rita Wilson were among the first famous people to admit to having COVID-19. They disclosed when they recovered that they have also obtained a PPP loan. The credit was utilized to pony up the wages of the staff of their production company.
Rihanna’s fashion label, Fenty, obtained a $2 million PPP loan. The cash was employed to cover her workers’ wages as well as other expenditures.
Straits, Ludacris’ Atlanta-based eatery, obtained a $150,000 PPP loan. The cash was utilized to cover his workers’ wages as well as other expenditures.
The year before, Jeff Koons would become the world’s most famous living artist after his “Rabbit” sculpture generated a record $91 million at a New York auction. However, his production company, which hires 53 people, appears to have been cash-strapped when the lockdown occurred. The studio was endorsed for a loan ranging from $1 million to $2 million.
These are only a few of the celebrities who’ve already benefited from PPP loans. Although the loans were intended for smaller companies, it is evident that the scheme has profited numerous big names too.