American rapper Kanye West's Yeezy company received more than 2 million USD through the Paycheck Protection Program (PPP), the Small Business Administration disclosed on Monday.
According to The Hollywood Reporter, Yeezy, an LLC formed by the 43-year-old musician, received a loan between 2 million USD and 5 million USD, according to the SBA.
The company disclosed that it saved 106 jobs because of the program, meant to help businesses struggling during the novel coronavirus pandemic.
The PPP, which was passed in May, is meant to serve as a lifeline for small businesses battered by the coronavirus pandemic in an effort to save jobs while employers are financially struggling. The loans are forgivable if businesses spend the funds on eligible costs. However, the amount of forgiveness is reduced if a company reduces the headcount of full-time employees or cuts pay by more than 25 per cent.
The Small Business Administration's Paycheck Protection Program let most compes with 500 or fewer employees apply for loans to cover the cost of eight weeks of payroll.
The PPP loans cover up to two and a half times the company's average monthly payroll costs, up to 10 million USD with a cap of 100,000 USD per employee. Sole-proprietorships, independent contractors and some self-employed workers were also eligible, and because contractors could apply on their own, their payroll costs could not be included in the application from the company with which they work.
After the first round of funds were quickly spoken for and news broke that some large compes, like Shake Shack, had taken funds, the government advised businesses to consider their "ability to access other sources of liquidity" and whether the loan was really necessary before applying.
As for West, over the weekend, the 'Runaway' singer made headlines when he announced his candidacy for the 2020 presidency with fewer than four months before the election.
He tweeted on Saturday evening (local time), "We must now realize the promise of America by trusting God, unifying our vision and building our future. I am running for president of the United States."
( With inputs from ANI )