Hotelier Sam Chang’s Firms Obtained Millions In PPP Loans
Properties related to the hotel mogul in New York Sam chang secured millions of dollars in government aid intended to help small businesses affected by the coronavirus.
At least eight Chang-controlled companies have secured between $ 2.8 million and $ 7 million in small business loans, CNBC reported. Chang founded the McSam Hotel Group, which made a name for itself developing budget hotels along Manhattan’s West Side.
Last year Chang – who has previously claimed he was worth $ 200 million – said he would retire to focus on the obscure hobby of pigeon racing.
Most of the loans went to limited liability companies linked to individual properties owned by Chang, according to CNBC. These properties included a TownePlace Suites by Marriott in Manhattan, a Holiday Inn near John F. Kennedy Airport in Queens, and a Radisson in Grand Island, New York.
A McSam spokesperson told CNBC the loans were being used to help retain employees at some of its hotels.
“A number of these sites have provided housing for healthcare professionals and others working for Covid-related purposes,” the spokesperson said. “PPP loans have allowed hotels to retain much of their workforce longer and continue to operate despite dramatic declines in customer base and revenue. “
More than 660,000 companies have been approved for Paycheque Protection Program (PPP), managed by the Treasury Department and the Small Business Administration, large and small businesses receiving money.
A number of leading New York real estate developers have secured PPP loans, including Extell Development, Pyramid management group and Thor Actions.
[CNBC] -Keith Larsen