Home » Business » Kanye West is a beneficiary of US government loans

Kanye West is a beneficiary of US government loans

Shortly after being a candidate in the 2020 US presidential election, billionaire Kanye West is again in the news for having benefited from at least $ 2 million in government loans for his company Yeezy.

Documents have revealed that shoe company West Yeezy, which made profits of $ 1.3 billion in 2019 according to Forbes, received $ 2 million from the U.S. federal government.

Yeezy, 100% owned by Kanye West, has taken out loans worth between $ 2 million and $ 5 million as part of the paycheck protection program and said he had used the money to save 106 of its workers’ jobs.

The Paycheck Protection Program was created alongside the $ 2.2 billion CARES law signed by US President Donald Trump to support American businesses during the coronavirus pandemic.

Vera Wang and Oscar de la Renta are other famous fashion brands that have received loans of more than $ 2 million.

Investment funds, restaurant chains, American elected officials, but also the powerful Church of Scientology, are also among the beneficiaries, details CNBC.

The husband of the head of the Democrats in the American Congress Nancy Pelosi, also could benefit from a loan for the company which he co-owns, according to several media including the Washington Post.

“Even if they can effectively claim that they meet the criteria (for obtaining a loan), accepting the money clearly violates the spirit of the law and seems simply greedy and unfair”, lamented on CNBC Neil Barofsky, who managed the public program that helped American banks get rid of their questionable assets in the aftermath of the 2007-2008 crisis.

The Treasury announced on Monday that more than 4.8 million loans had been granted, for a total amount of just over $ 521.4 billion.

These loans turn into a subsidy if the allocated amount has actually been used to pay wages instead of laying off workers.

Congress and the Trump administration have released $ 849 billion in two tranches: the initial $ 350 billion was quickly spent, and almost $ 132 billion in the second tranche is still available.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.