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Realtors Had Billions In PPP Loans Forgiven As Housing Market Boomed - YouTube
Channel: NBC News
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one of the biggest government relief
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programs in history the paycheck
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protection program or ppp loan program
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was meant to be a lifeline for small
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businesses through a dark period of the
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pandemic from coast to coast empty
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streets businesses closed as dire as
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things looked in march and april of 2020
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many entities ended up faring well
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through covid some of them benefited
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from the program and got loans forgiven
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even after their business bounced back
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an nbc news analysis of data from the
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government's pandemic response
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accountability committee found that the
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federal government authorized more than
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300 000 ppp loans to real estate
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entities claiming just one employee that
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adds up to 3.9 billion dollars in loans
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backed by the u.s small business
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administration yet unlike other
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industries like tourism and hospitality
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which suffered during the pandemic real
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estate boomed bidding wars are on the
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rise 41 of listings sparked bidding wars
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existing home sales in june jumped 20.7
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that is the largest one-month jump ever
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since the realtors began recording in
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1968 between april of 2020 and january
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of 2021 existing home sales jumped more
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than 50 percent now the price of homes
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are at least 38 percent higher than in
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january of 2020. in santa barbara real
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estate agent gary goldberg was involved
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in the sales of luxury homes equaling
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more than 27 million dollars in 2020 in
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2021 jumping to 82 million according to
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a history of listings on zillow even
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estimating a conservative commission
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that could still mean potentially seven
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figures and earnings over the two years
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yet public records show goldberg's
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business also received ninety five
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thousand dollars in ppp loans which were
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forgiven in 2021 we reached out to ask
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him about it but he declined to comment
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there's no indication he did anything
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illegal he's also not alone in west los
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angeles
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enzo ricciardelli was the agent in 12.2
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million dollars of home sales in 2020
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per his zillow history and his business
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also received more than a 145 000 loan
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from the paycheck protection program
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forgiven in 2021 efforts to reach him
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were unsuccessful nbc news reached out
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to a dozen agents with strong 2020 sales
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and whose businesses obtained ppp loans
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in excess of ninety thousand dollars
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that were wholly or partially forgiven
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by the federal government none agreed to
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do an on-camera interview aaron stackley
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with the national association of
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realtors defended those who asked for
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ppp loan forgiveness in her industry
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they had open houses cancelled because
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obviously people didn't want people
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traipsing through their homes if they
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were received the loans in good faith
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and if they follow the program's rules
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then that is what the sba and congress
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intended to happen the loans were made
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with the understanding that they'd be
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forgiven if the recipient met certain
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criteria like spending 60 percent of it
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on payroll
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but not everybody was able to get
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assistance back in los angeles we
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visited an address listed on one
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realtor's loan a new business had moved
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in the manager there telling us what it
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was like to get denied in the beginning
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of the pandemic it was very hard because
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everything was shutting down and closing
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and
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not available and
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it was pretty tough numb we're barely
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trying to
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get our heads above the water now the
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banks were also very kind of iffy they
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were saying we are not qualifying yet
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for real estate entities forgivable
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loans were given back to realtors in
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many booming markets 3.6 million to real
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estate entities in beverly hills 4.3
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million in el paso texas and 14.9
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million in charlotte north carolina out
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of the realtors we tried to contact one
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did say she plans to return the money
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phyllis patrick a real estate agent in
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austin texas got an eighty three
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thousand three hundred dollar loan she
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says she'll pay hers back citing her
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good business through the pandemic
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squad venegas joins us now and gwen i
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guess i understand a business asking for
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forgiveness if you can ask why not ask
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but from the government's perspective
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why did the federal government forgive
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all these loans even for businesses that
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did well through the pandemic
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that's a big part of the question aaron
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we spoke to the small business
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administration about this and a senior
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sba official told nbc news that multiple
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pieces of legislation dictated the terms
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of the loan program and they were quote
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extremely liberal and extremely generous
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when it came to the loan forgiveness
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essentially that's how the program was
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designed but as the country now
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questions if the pandemic relief was too
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big with inflation where it is we
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thought we would highlight how there
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were lots of businesses that as you saw
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got relief that actually did pretty well
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these last two years
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thanks for watching our youtube channel
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follow today's top stories and breaking
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news by downloading the nbc news app
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