A Philadelphia-based boutique hotel chain has come under fire for ostensibly taking advantage of the government’s small business loans.
The $350billion fund to provide relief to small businesses during the coronavirus pandemic ran dry according to reports on April 16, though Congress are nearing a deal on a second fund.
When it was still open for applications, however, Hersha Hospitality, an upmarket hotelier with 48 properties, applied for a small business loan for each of its properties, rather than for one company-wide loan.
This was first reported by the Daily Beast, and perhaps shows a loophole in the Paycheck Protection Program (PPP), part of the CARES Act legislation passed in March.
In a video posted to Twitter on Monday Senator Marco Rubio clarified:
“I think unfortunately there probably are a couple companies who qualified for this, and entities who qualified for this, who were not what we intended.
“That said, the only comfort we should take is this is not a bailout. None of these companies are getting a bailout.”