Coronavirus relief funding was meant to help businesses maintain staff and run operations amid the novel virus, but it seems like they have caused more chaos than good in many parts of the US.
Complaints of unfair disbursement have, for the most part, dominated discussions as many small business owners—who were the focus beneficiaries—claim they applications were rejected.
In light of that, mid-last-month, House Speaker Nancy Pelosi asked one landlord, Veritas Investments, to give back the 3.6 million dollars it had received as part of the funding allocated for US microbusinesses.
Veritas Investments, one of the largest property-owners in San Fransisco, somehow secured the aforementioned lump sum from the Paycheck Protection Program (PPP) that was part of a reprieve funding allotted to help micro-businesses maintain employees and sort out expenses through COVID-19.
According to the Speaker, “Paycheck Protection Program loans should prioritize first and foremost, small businesses with the greatest need for funding. In particular, it was meant to assist veteran, minority, and female-owned businesses suffering from the pandemic.
“Established companies like Veritas Investment, a major corporate real estate company that boasts billions in assets and has access to finances from elsewhere were not the focus recipients of the Paycheck Protection Program funds.
And Speaker Pelosi wasn’t wide of the mark in her utterances. Veritas is in charge of over 250 properties in San Francisco and a collection of Real Estate belongings worth 3 billion dollars.
In response to the Speaker’s call, the Real Estate giant said it plans to settle up the loan within the 2-year cut-off period issued by the federal government.
“Like any other business, we needed the funding for its intended use, to cover payroll and pay the staff who maintain the properties that shelter over 8,000 people in San Francisco,” Veritas Investments said in the statement. “We understand that some beneficiaries applied to use it as a grant, but that is not our intent. We won’t keep it.”
Meanwhile, other small business owners are not happy with Veritas either. At one time, a Sign painter was seen drawing a sign at one of Veritas’ apartments to express her anger. Libby Staub was annoyed that the Real Estate giant had received a whopping 3.6 million dollars, but she has yet to benefit from Coronavirus relief funds.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant cash advance applications. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard-working business owners across the country.