Companies backed by private equity got $5 billion in Covid relief

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Companies backed by private-equity firms got $5B out of $2T in federal Covid relief, report shows.

, received at least $5 billion. At the time these companies received the government funding, their large private-equity owners, a group of more than 100 firms that includes Energy Capital Partners, Apollo Global Management and Ares Management Corp., held $900 billion in uninvested cash, the report says.

When PPP was first introduced at the start of the pandemic, there was no restriction on borrowing by companies that had access to other capital. After an outcry over big firms getting loans, on April 23, 2020, the Treasury Department said"PPP borrowers should consider their ability to access alternative sources of liquidity sufficient to support their ongoing operations" when certifying their need for a loan.Compliance with that guideline, however, was effectively an honor system.

"Private-equity titans are emblematic of a well-funded investor class who should be able to support their own companies in a crisis," said Woodall."Their companies went with willing hands to take money from public support that could have gone to firms with less access to credit and greater need." Ramaco's general counsel declined to comment on the record about the loan or the executive pay. Energy Capital Partners and Yorktown Partners did not respond to requests for comment.

 

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And using the money for everything but covid

Take it back!

SMH

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