LA Lakers are paying back the Paycheck Protection Program loan
“The Lakers qualified for and received a Payroll Protection Program loan,” a Lakers spokesperson wrote in an email to CNN Business. “However, when we found out that the program had run out of funds, we repaid the loan so that the financial support would go to those most in need. The Lakers continue to be fully committed to supporting both our employees and our community. “
The Lakers organization qualified for the $ 4.6 million PPP loan because it has 303 full and part-time employees, a source knowledgeable of the situation told CNN. The source also said the company has and does not plan to leave or lay off employees, and that the Lakers’ top executives have agreed to postpone 20% of their salaries to ensure other employees could get paid.
Any loans that are returned or repaid will flow back into the program for future payouts, an SBA spokesman told CNN Business last week.
As of April 16, the SBA had approved more than 1.66 million loans totaling more than $ 342.2 billion, according to an agency report. Of that, 4,412 was for $ 5 million and more. The high quality loans accounted for 0.3% of the total number of loans and 9% of the total dollar value.
“When a hugely successful sports franchise that can afford to pay LeBron James nearly $ 40 million a year is pushed to return paycheck protection funds, we should ask ourselves why the white House and Congress have not specified who and what aid is eligible, “wrote Kyle Herrig, president of the state watchdog group Accountable.US, via email to CNN Business Small businesses on the verge of bankruptcy get the help they need. “
– CNN’s Kevin Dotson contributed to this report.