Taxpayer-Backed Loans for Fortune 100 Companies

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On their website, the Small Business Administration claims that since its founding on July 30, 1953, the U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses.

They have grown and evolved according to their website and indeed they have. They now take our taxpayer money and give it to rich, successful companies and organizations of and for the rich.

Open the Books research shows that we are subsidizing major companies and wealthy lifestyles across the nation. The records examined were from 2007-2013.

“There was $124-million that flowed into ZIP code 90210. That’s Beverly Hills, California,” said Adam Andrzejewski who founded Open the Books. “It was a Bentley auto dealership, Botox beauty clinic, it was $4-million to their exclusive diamond brokerage.”

“While many of those guaranteed loans helped companies across the nation succeed, some burned taxpayers when the recipients’ business ventures failed.” For example, “$1.5-million flowed into a Lamborghini dealership. That was a reduced rate. Taxpayers had the risk on that loan. And then the Lamborghini dealership went out of business, and the loan was charged off,” Andrzejewski continued. “The loan wasn’t paid, and taxpayers were left holding the bag.”

He says his research team found $27-billion in other charge-offs in the seven years of records he examined.

A billion here, a billion there, pretty soon, it’s a lot of money. It’s the government interfering with the free market and catering to cronies.

Ten Fortune 100 companies and their affiliates obtained more than $250-million in taxpayer-backed loans.

“If there have been wrong decisions made by the SBA, we will get to the bottom of it and it is the responsibility of Congress to do so,” pledged U.S. Rep. David Jolly.

Florida Congressman Ron DeSantis also said he was troubled by some of the lending decisions by the SBA.

“Before you look at welfare for the poor, you need to look at corporate welfare and eliminate things like that where taxpayers are being put on the hook to divert money to companies and individuals that are very well off and can afford it themselves,” offered DeSantis.

How do you feel about corporate welfare?
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