According to a television station in the Bay Area, several companies partially owned by California Democratic Gov. Gavin Newsom collectively received nearly three million dollars in Paycheck Protection Program loans intended to keep employees on the payroll during the COVID-19 recession.
KGO News’ investigative unit, the ABC7 I-Team, reports it “discovered discrepancies” that “appear to raise questions” about how much relief went to businesses under the umbrella of the PlumpJack Group, a hospitality management company founded by Newsom in 1992. Its properties include wineries, bars, restaurants, and a boutique hotel.
Gov. Newsom placed his ownership interest in the organization into a blind trust in 2018, meaning he would have no involvement in its business decisions while governor. Still, Hilary Newsom, the governor’s sister, currently serves as the group’s president. Its website boasts, “PlumpJack Group has established itself as the signature Northern California lifestyle and hospitality brand.”
His businesses got millions & stayed open, while CA small businesses were forced to close, struggling to qualify for the loans he so easily obtained. Ya think it has anything to do with the fact San Francisco billionaire, Gordon Getty, is an investor? Nah! https://t.co/EPzLJWXDC2
— Jim Patterson (@JimPatterson559) December 9, 2020
As the I-Team reported:
While data released by the Small Business Administration earlier this year showed the PlumpJack Group received up to $350,000 worth of PPP loans, newly-released data by the SBA indicated PlumpJack businesses – including wineries, bars, and restaurants – received more than eight times that amount at nearly $3 million altogether… ABC7’s analysis found at least nine companies affiliated with the PlumpJack Group received PPP loans.
One of the companies on the list is Villa Encinal Partners Limited Partnership. State records indicate the name is traced back to the PlumpJack winery in Napa. San Francisco billionaire Gordon Getty is an investor. According to SBA data, the company received a loan for $918,720 on April 14, 2020.
ABC7 cited data that indicates Villa Encinal Partners LP retained 14 employees with those funds. The outlet crunched the numbers, adding: “Hypothetically, if divided equally, each of them would’ve received around $40,000 to cover their payroll over a period of three months – that would amount to an annual salary of around $160,000 per employee.” – READ MORE
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