Kanye West’s fashion company Yeezy received millions in PPP loans.
What We Know:
- The U.S Treasury’s Small Business Administration released records stating the Yeezy LLC received between $2 million and $5 million as a part of the federal government coronavirus stimulus package.
- Apparently, the funds were released in the latest round of the Paycheck Protection Program and will save 106 jobs at the company. The Paycheck Protection Program, that’s a part of the CARES Act, provides loans to smaller companies to help keep employees on their payroll during the COVID-19 pandemic.
- Yeezy LLC is one of 40,000 companies to receive a PPP loan of $150,000 and above, as the news follows West’s announcement that he is entering the 2020 presidential race.
- Yeezy, best known for its $250 sneakers, just announced a major deal with Gap that will have the rap superstar designing hoodies and T-shirts that will be sold in the chain’s 1,100 stores around the world.
- Kanye immediately got some online backlash after the news hit social media.
- Loan eligibility and amounts are determined based on factor such as net profits, whether an applicant is self-employed, and whether an organization operates a nonprofit, with loan amounts themselves being forgiven if necessary employee retention criteria are met according to the SBA.
- In April, there were reports the PPP funds had run out, with money having been disbursed to major organizations that were not “small businesses”, such as the Los Angeles Lakers who went on to pay back the loan money they received.
Forbes reported Kanye West’s net worth was close to $1.3 billion. In June, West congratulated his wife, Kim Kardashian West for also becoming a billionaire.