These Central Valley congressmen have stakes in businesses that accepted PPP loans
Two San Joaquin Valley members of Congress and one former lawmaker seeking a return to elected office are affiliated with businesses that participated in the small-business lending program known as PPP, or Paycheck Protection Program.
The money was approved by Congress and President Donald Trump in late March in order to help businesses that struggled with the sudden economic downturn caused by the coronavirus pandemic. About 60,000 businesses received at least $150,000 each from the program.
The loans are forgiven if they are used for payroll, rent, utility costs or mortgage interest. Businesses are also required to use at least 60% for payroll costs in order for the loans to be forgiven.
Reps. Devin Nunes, R-Tulare, and TJ Cox, D-Fresno, as well as former Rep. David Valadao, a Republican from Hanford who is challenging Cox, had businesses affiliated with them accepting loans from the PPP in April.
Nunes has a limited partnership in wineries called Alpha Omega and Phase 2 Cellars, according to his most recent financial disclosure report. Both of those businesses were granted between $1 million to $2 million each in loans.
He has a stake of between $50,000 and $100,000 in each of the wineries, according to his financial disclosure records.
Cox was a managing officer for California Custom Processing, an almond processing company, but became a minority investor while serving in Congress, as he divested from dozens of business interests. The company took between $150,000 and $300,000 through the program.
Neither congressman is involved in the day-to-day decisions of those businesses, as it is typically against congressional ethics rules for congressmen to run businesses while in office.
“TJ Cox built and is now proud to be a passive minority investor in an almond processing plant that has created many Central Valley jobs,” Amanda Sands, Cox’s campaign manager, said in a statement. “Unlike the large publicly traded companies that received millions in PPP funding, the plant received $350,000 in loans that will protect agriculture jobs here in the Valley during the COVID-19 crisis. The loans were acquired through proper channels in order to keep this small business operating.”
Nunes’ office did not return a request for comment.
Valadao’s family farm, called Valadao Dairy, also took out a loan in April between $150,000 and $300,000. Valadao currently works at the dairy, though he no longer has an ownership stake in the farm.
“For over two years, David has had no ownership stake in Valadao Dairy and had no decision making authority when it came to the company applying for a PPP loan,” said Andrew Renteria, Valadao’s campaign manager.
This story was originally published July 8, 2020 at 11:36 AM with the headline "These Central Valley congressmen have stakes in businesses that accepted PPP loans."
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