Even while the media is blaring stories about the abuse of the Payroll Protection Plan loans from the Small Business Administration, its own industry took millions in loans and wants billions more.
Unlike many small businesses which were forced to shut down because of the lockdown, the media has been wrongly listed as ‘essential’ and exempted from the shutdowns, but that hasn’t stopped it from taking money that should have been used to compensate small business owners who can’t stay open.
Even when the media operations cashing in on the SBA loans aren’t anyone’s idea of a small business.
The Seattle Times maxed out its PPP loan with a $10 million payout. The Seattle Times is not only Washington State’s largest daily, but its parent company, the Seattle Times Company, owns two other papers, and had, as recently as 3 years ago, put out 7 papers. It also owned multiple newspapers in Maine which it sold off for over $200 million. It had two printing plants, one of which it sold. The Rotary Offset Press, which it still owns, continues to print a variety of magazines and newspapers.
But while the Seattle Times is, like the New York Times, a multi-generational family property, the McClatchy Company owns 49.5% of voting stock and 70.6% of voting stock in the Seattle Times Company. McClatchy has dozens of papers and had revenues of over $800 million in 2018.
While McClatchy has operated at a loss and filed for Chapter 11, it’s not a small business. Neither is the hedge fund likely to run it which is partially backed by, among others, CalPERS, the California Public Employees’ Retirement System, the largest and most politically correct pension fund in the country.
Is this really a small business?
Despite the façade of family ownership, national chains have owned much of the Seattle paper business since the Great Depression with McClatchy taking over from Knight Ridder. Even if you ignore all the wizards behind the Emerald City paper’s curtain, the Seattle Times Company has 849 employees.
How was the Seattle Times able to max out the SBA’s PPP loan? Double and triple standards.
If you deal in fresh fruit and have over 100 employees, according to the SBA, you’re not a small business. If you supply toys, you’re limited to 150 employees. But if you’re a newspaper publisher, you can have up to 1,000 employees and still be considered a small business.
That’s how a company that owns 3 papers, a printing plant, and its silent partner is one of the largest news publishers in America, was eligible to grab loans intended to keep small businesses afloat.
Now go read the entire article at the Sultan Knish