Did Kanye West take advantage of the Paycheck Protection Program? The singers company received over $2 million through the government program, and people are not quite sure what to feel about it.
According to the Small Business Administration, Kanye West's company, called Yeezy, received a huge sum to be used for payroll. The company even disclosed that this program was able to save 106 jobs.
Yeezy, an LLC established by the musician as well as clothing designer, and notably the husband of Kim Kardashian, who recently attained the "billionaire" status, received a massive loan, according to the agency. The amount ranges between $2 million and $5 million, as Hollywood Reporter detailed.
The program was designed to help struggling businesses cover their payroll, and therefore keep the businesses afloat as well as employees fed in the middle of the novel coronavirus pandemic. Without such program, one can only imagine the number of businesses that would rather close down instead of pay for people when they are not earning. One can also imagine what would happen to the unemployment rate, which would naturally soar at an unprecedented rate.
One can only imagine the number of households that would starve as a result.
Since Yeezy truly used the money to save its employees, there shouldn't be any issue. However, Kanye West is Kanye West, and people cannot help but wonder why he needed the aid of the government when he can easily fund for the payroll himself. Or with the help of his wife, Kim Kardashian.
More so when it was just barely two weeks when he said he was very proud that his wife is now a billionaire. Over the weekend too, he announced his candidacy to run for the 2020 presidency. With fewer than four months before the election, and because he is a star known to support the present President, Donald Trump staunchly, his announcement raised not just a few eyebrows.
"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," West tweeted Saturday night.
Passed back in May, the PPP is designed to serve as a lifeline for "small businesses" battered by the COVID-19 pandemic. The program is designed to help small, ailing business owners still pay their employees even though the business is technically not profitable. The loans would be forgiven if the businesses spend the funds on eligible costs. However, the loans would not be forgiven as much if the company fired some employees or enacted pay cuts by more than 25 percent.
Kanye West's Yeezy is probably eligible because the program covers most companies with 500 or fewer employees. The money given is meant to cover eight weeks or two months' worth of payroll.
After the first round of funds were given, some reports revealed that large companies also received funds under the program, like Shake Shack. The government in response, called for companies to first evaluate their ability to access other sources of liquidity and determine whether they truly require the loan.
It was even reported early on that Yeezy and Gap are collaborating to launch a massive campaign on 2021. Where are all the money?
Apparently, Kanye West did not access other sources enough, since it is apparent for his fans where he could get some funds. He might also have not thought of whether this is truly necessary for his company or not.
The singer has not replied to requests for comments.