Sotherly Hotels Double Dips in SBA PPP Program

0
Sotherly Hotels Double Dips in SBA PPP Program
quinntheislander / Pixabay

Luxury Hotel Brand Sotherly Hotels Double Dips in SBA PPP, While Casino Service Provider Joins List of Grantees

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q1 2020 hedge fund letters, conferences and more

WASHINGTON, D.C. – The latest Securities and Exchange Commission filings show 33 additional publicly traded companies secured over $93 million in SBA Paycheck Protection Program funds meant for struggling small businesses on main street, including at least found stock holdings companies and at least eight businesses with more than 500 employees.

Alluvial Fund May 2021 Performance Update

Alluvial FundAlluvial Fund performance update for the month ended May 2021. Q1 2021 hedge fund letters, conferences and more Dear Partners and Colleagues, Alluvial Fund, LP returned 5.4% in May, compared to 0.2% for the Russell 2000 and 1.0% for the MSCI World Small+MicroCap . . . SORRY! This content is exclusively for paying members. SIGN UP Read More


Sotherly Hotels Receives A Second Round Of PPP Loans

A deeper dive reveals Sotherly Hotels Inc. -- a luxury hotel brand whose portfolio boasts a dozen “full-service, primarily upscale and upper-upscale hotels” – received a second round of PPP loans, with its latest loan of nearly $953,000 bringing its total to over $11.6 million.

In addition, The ONE Group Hospitality, Inc., which provides "upscale" services for "hotels, casinos, and other high-end locations across the globe" secured a $18.3 million forgivable loan despite having access to $10.7 million in credit according to their most recent quarterly report. And medical device company Neovasc Inc. received a $530,000 loan despite being headquartered in Vancouver, B.C. Canada.

The latest filings come on the heels of an SBA Inspector General report finding the Trump SBA’s lack of guidance led to many minority and women small businesses -- as many as 90 percent -- being left behind in the first round of the PPP program. There is no indication that the indefensible, systematic discrimination has been ‘fixed’ by the administration.

“As the economy continues to hemorrhage millions of jobs a week, the Trump SBA is staying the course on its failed strategy of protecting profits of huge publicly-traded companies before helping thousands of small businesses on the cusp of collapse,” said Jeremy Funk, spokesman for Accountable.US. “Congress must step in to do what the administration won’t: fix this program so help actually gets to the main street job creators it was promised to."

These filings were compiled as part of an ongoing tracking project by government watchdog Accountable.US. TrumpBailouts.org documents the billion-dollar corporations and other large companies that have received taxpayer assistance under the CARES Act, and what advantages and assets they had going into the CODID-19 crisis that most small businesses could never access.

Among The Latest Publicly-Traded PPP Recipients:

LOAN DATE COMPANY LOAN AMOUNT MOST RECENT EMPLOYEE COUNT
5/5/20 Rekor Systems $5,005,400.00 472
5/4/20 Iota Networks, LLC $763,600 40
4/20/20 Clearside Biomedical, Inc. $1,000,000.00 33
5/7/20 Sotherly Hotels Inc. $952,700.00 13
5/7/20 Acme United Corporation $3,508,047.00 441
5/6/20 ADOMANI, Inc. $261,244.00 11
5/4/20 Marchex Inc. $3,970,587.00 291
4/14/20 Manitex International Inc. $3,700,000.00 598
5/4/20 Live Ventures Inc. $4,767,887.00 1000
5/4/20 ONE Group Hospitality Inc. $18,300,000.00 227
4/23/20 Netlist, Inc. $600,000 80
5/8/20 GTY Technology Holdings, Inc. $3,100,000.00 108
5/4/20 Lazydays Holdings, Inc. $1,872,705.00 935
5/1/20 Transportation and Logistics Systems, Inc. $504,940.00 541
4/10/20 Synthesis Energy Systems, Inc. $134,127.00 6
4/10/20 FutureFuel $8,180,000.00 500
4/14/20 Koss Corporation $506,700.00 34
5/5/20 RF Industries, Ltd. $2,789,000.00 281
4/17/20 Applied Optoelectronics, Inc. $6,230,000.00 3,115
5/1/20 BioCardia Lifesciences, Inc. $506,413.00 24
4/30/20 Charlie's Holdings, Inc. $866,361.00 59
5/4/20 Polar Power, Inc. $1,710,000.00 179
5/6/20 Quantum Computing, Inc. $218,371.00 12
4/23/20 Red Lion Hotels Corp* $4,200,000.00 285
4/20/20 South Dakota Soybean Processors LLC $1,200,000.00 121
5/3/20 Eyenovia, Inc. $463,353.00 22
5/6/20 Inrad Optics, Inc. $973,000.00 58
4/29/20 Sachem Capital Corp. $247,845.00 10
5/4/20 Ideal Power, Inc. $91,407.00 5
4/27/20 Neovasc Inc. $530,000.00 197
4/30/20 PDC Energy* $10,000,000.00 540
4/14/20 Digi International* Unspecified 543
5/6/20 Trecora Resources $6,100,000.00 270

Previously controversial PPP grantees include a foreign-owned uranium mining corporation with ties to the Trump administration, at least two companies that market their ability to ship U.S. manufacturing jobs overseas, major luxury hotel chains, a fashion model agency, and even the L.A. Lakers.

BACKGROUND: The SBA’s Paycheck Protection Program has been plagued with reports of legitimate small businesses unable to access the help the President claimed would come in “record time”. They have faced a bureaucratic maze often ending in delays and rejection as banks reportedly prioritized those “with the best relationships — not the neediest or most deserving.” A recent survey of small businesses found only 13% of the 45% who applied for a PPP loan were ever approved. Meanwhile, CEOs of large companies have managed to coast through the process. Well over 300 publicly-traded firms or conflicted companies, some worth more than $100 million, have received over a billion dollars in taxpayer money. It’s no wonder the Trump administration has shied away from transparency in this process.


Accountable.US is a nonpartisan watchdog group that exposes corruption across all levels of government.

 

Previous article Tri-State Area Leads Nation In Decline In Coronavirus Deaths
Next article The Fears Of Secondary Outbreaks Lead To A Reversal
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

No posts to display