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Chang’s business, a prominent New York hotel developer, received millions of PPP loans

A company managed by one of New York’s most prominent hotel developers received millions of dollars in loans from a government program aimed at helping small businesses as the coronavirus hit the economy. I did.

At least eight companies owned by Sam Chan received $ 2.8 million to over $ 7 million in federal SME loans, according to a list of transactions released this summer. The amount and method by which the funds were distributed to Chang’s business had not yet been reported.

Over 660,000 companies have been approved by the Paycheck Protection Program run by the Treasury and the Small and Medium Business Administration. Loans went to big and small companies while the coronavirus was sweeping the country. Congress and the Trump administration continue to negotiate more stimulus funds. The Senate will vote for another Republican-supported coronavirus bill on Wednesday.

Chang founded the McSam Hotel Group, known for buying and developing hotel properties that offer affordable accommodation. Some of these properties include hotels in and around Times Square, including Hampton Inn, Candlewood Suites, and Holiday Inn.

According to a 2006 New York Times report, Chan once said it was worth $ 200 million in cash. The Wall Street Journal reported that it plans to retire in 2019.

Chan owns many New York hotels, but he doesn’t control them and wouldn’t have applied for a loan himself.The commercial real estate and hotel industry suffered significant losses after the pandemic struck the United States

Maxam spokesman Sam Goldstein told CNBC in a statement that the loan was partly aimed at helping retain employees.

“The hospitality industry, as widely documented, is one of the most hit sectors in the economy, especially due to the Covid recession in New York City,” he told CNBC by email. “Many of these sites provided accommodation for healthcare professionals and other people working for Covid-related purposes. With PPP loans, hotels retain many employees for extended periods of time, resulting in significant guest and revenue. We were able to continue operation despite the decrease in the number. “

According to records, most of the loans go through an ambiguous limited liability company for a single property owned by Chan. Meanwhile, the McSam Hotel Group saw between $ 150,000 and $ 350,000, but the total was directed to Chang’s headquarters, according to a McSam spokesman.

Other federal loans were sent to seven other LLCs that did not have his company name, such as Grandsam Island LLC and Brisam JFK LLC. A company called Lopm 39 De LLC saw a federal loan of $ 1 to $ 2 million. CNBC searched the New York business database and found that they often listed the same addresses as the McSam Hotel Group in Great Neck, NY, and that these LLCs were linked to Chang.

According to a spokeswoman, LLCs named Grandsam Island, Brisam JFK, NDBPW 44, SCCQ Downtown, Lopm 39 De, LSCH and NYHK West 40 are all Chang’s entities that own a single hotel in New York.

Grand Sam owns Radisson on Grand Island, New York. Brisam JFK owns a Holiday Inn Hotel near John F. Kennedy Airport in Queens. NDBPW owns Manhattan’s Town Place Suites by Marriott. NYHK West40 owns the Manhattan Doubletree.

Chan has no direct relationship with President Donald Trump, but according to Real Deal, he invested in Trump Entertainment Resort many years ago. Owning and managing real estate, such as the Trump Taj Mahal Casino in Atlantic City, NJ, was one of the companies before the president before the business went bankrupt. Chan called Trump a friend in an interview with Real Deal in 2008.

Many real estate businesses, partly related to Trump, were backed by a federal loan program.

GH Palmer Associates, a real estate company run by Trump’s longtime supporter Jeff Parmer, has been approved for financing.

Palmer has been approaching Trump for years. According to the nonpartisan Open Secrets, he is one of the many corporate leaders of Trump’s Coronavirus Business Advisory Board and has donated at least $ 6 million to Trump-backed Super PAC America First.

Dezer Development, a real estate company founded by Michael Dezer, states on its website that it has the same address as Trump International Beach Resort in Miami, Florida. The Dezer website states, “The brand’s real estate portfolio includes six Trump branded towers.” Dezer wins $ 350,000 to $ 1 million from PPP

Chang’s business, a prominent New York hotel developer, received millions of PPP loans

Source link Chang’s business, a prominent New York hotel developer, received millions of PPP loans

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