Hotels, luxury resorts and management companies that funnel money back to a single company have secured about $53 million in federal virus aid, the largest known amount to benefit one firm and the latest example of how the government’s small business relief program is also helping big companies.
Ashford Inc., an asset management firm based in Dallas, makes money partly by advising two real estate investment trusts: Ashford Hospitality Trust and Braemar Hotels & Resorts, which together own more than 100 properties. Those companies reported in public filings that their hotels had received millions in forgivable loans through a government program meant to help small businesses. The so-called Paycheck Protection Program ran out of its initial $349 billion on April 16, leaving many small companies with no assistance.
Congress is expected to add another $310 billion to the program, but there are growing concerns that the Treasury Department and the Small Business Administration have not done enough to prevent big companies from getting funds ahead of smaller, often independent businesses with no other financing options.
Several other big, publicly traded companies have received forgivable loans, including J. Alexander’s, whose restaurants received $15 million; Ruth’s Hospitality Group, parent to Ruth’s Chris Steakhouse; and Shake Shack, which has since returned the loan. That has prompted an outcry from lawmakers and small-business owners, who say this goes against the intent of the program.
