Thursday, December 17, 2020

This is How Cronyism Works: The French Laundry Got 17X More in PPP Funding Than Average Bay Area Restaurants

California Governor Newsom dining out at the French Laundry after telling California residents to stay at home and not gather.

The northern California restaurant, The French Laundry, where California Governor Gavin Newsom and San Francisco Mayor London Breed flouted the lockdown measures they instituted on their residents, reportedly received millions in PPP funding.

The Michelin-rated restaurant received multiple loans through the Paycheck Protection Program, totaling more than $2.4 million, according to an ABC7 analysis of newly-released data from the Small Business Administration.

ABC7's analysis found the company received 17 times more than what the average Bay Area restaurant received.

The I-Team analyzed thousands of California loans released by the SBA that show wealthier, big businesses are often getting access to loans before small mom and pop owners. Out of all the approved loans in California, 91 percent of larger restaurants with 300 or more employees got their loan approved in April versus only 52 percent of smaller restaurants with 100 or fewer employees.

At the French Laundry, you can reserve an exclusive outdoor culinary dining experience starting at $450 per person or a White Truffle and Caviar dinner for $1,200 per person, according to reservation services online.

When a power center emerges, especially one dishing out cash, those close to the power center benefit.


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