West Virginia governor’s firms get millions in loans

  • Corporate News
  • Wednesday, 08 Jul 2020

Raising eyebrows: The luxury Greenbrier resort in West Virginia. It received loans meant for small businesses to stay afloat in crisis. — AP

CHARLESTON: Billionaire West Virginia governor Jim Justice’s family businesses received at least US$11.1mil from a federal rescue package meant to keep small businesses afloat during the coronavirus pandemic, according to data released by the Treasury Department on Monday.

Justice, a Republican, is considered to be West Virginia’s richest man through ownership of dozens of coal and agricultural businesses, many of which have been sued for unpaid debts.

At least six Justice family entities received the Paycheck Protection Programme loans, including four energy companies, the governor’s lavish resort The Greenbrier, as well as The Greenbrier Sporting Club, an exclusive club for people who own real estate at the resort, according to the data. The businesses were listed as collecting between US$11.15mil and US$24.35mil because the federal government disclosed the dollar figures in ranges, not specific amounts.

The aid package is the centerpiece of the federal government’s plan to rescue an economy devastated by shutdowns and uncertainty, with the data released Monday presenting the fullest accounting of the programme thus far.

Justice acknowledged last week that his private companies received money from the programme, but said he did not know specific dollar amounts. A representative for the governor’s family companies did not immediately return an email seeking comment. At a news briefing Monday, Justice again said he was unsure of the dollar amount but added that he pushed for companies to take advantage of any federal virus relief programmes.

“I encouraged all business in our state to try to seek anything and everything that they could possibly seek from the federal government in regards to loans, ” Justice said, adding that around US$2bil has come into the state from the federal package.

The governor said he wanted to place his assets in a blind trust shortly after he was elected but has not done so. He maintained that his children were in control of the family business empire. Still, Justice has faced criticism throughout his time as governor from those who argue he is too focused on his private companies to perform his government duties. The governor has repeatedly pushed back on such claims.

Justice bought The Greenbrier resort out of bankruptcy in 2009. Nestled in the Allegheny Mountains in south-eastern West Virginia, The Greenbrier bills itself as America’s Resort and once served as a secret Cold War-era bunker for the federal engorgement. Now, the National Historic Landmark boasts more than 700 rooms and has hosted a PGA Tour stop. It closed temporarily because of the pandemic.

The resort came under the scrutiny of federal prosecutors last year, when attorneys in a public corruption unit sent three subpoenas to the Justice administration seeking documents related to The Greenbrier, the PGA tournament, the tournament’s non-profit financial arm and Justice’s tax records. The governor’s personal legal team told reporters at a January news conference the investigation ended with no finding of wrongdoing.

Last year, another one of Justice’s family businesses, Justice Farms of North Carolina, received US$125,000 in soybean and corn subsidies, the maximum allowed from a separate federal programme meant to help American farmers through the US trade war with China. The payments, made public through records provided to The Associated Press under the Freedom of Information Act, highlighted the sometimes fraught relationship between the billionaire’s businesses and his role as chief executive.

Justice won office in 2016 as a Democrat but announced after less than a year as governor that he was changing his party affiliation to Republican during a rally with President Donald Trump.

Under the Paycheck Protection Programme, the government is backing US$659bil in low-interest loans written by banks. Taxpayer money will pay off the loans if borrowers use them on payroll, rent and similar expenses. Companies typically must have fewer than 500 workers to qualify.

Demand was so great that a first infusion of US$349bil ran out in just two weeks. Many Main Street businesses could not navigate the application process rapidly enough to get one of those first loans before funding dried up.

Meanwhile, several hundred companies traded on stock exchanges – hardly the image of a small business – received loans maxing out at US$10mil each. — AP

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