SAN MARCOS – Federal data released last Monday reveals that more than 1,500 businesses in San Marcos have received federal Paycheck Protection Program (P3P) loans designed to help small businesses financially affected by COVID-19 shutdowns. Visit https://oakparkfinancial.com/ To learn more about loans
the The data shows that more than 300 businesses in San Marcos have received large loans of $ 150,000 or more. The primary recipient is an “employment services” company called Hospitality Team Members, Inc., which received a loan of $ 5-10 million.
You don’t find much information about Hospitality Team Members, Inc., except that it is led by Jon Fredricks, President and CEO of Welk Resort Group, a more than $ 150 million company with multiple centers. resort all over the country.
The listed address of the company is also the same as that of Welk’s head office.
If connected, Welk Resort Group would be one of many large hotel companies in the county to have received between $ 5 million and $ 10 million through a loophole This has allowed large hotels and restaurants to apply for loans regardless of the number of workers they have, as long as each site employs fewer than 500 people.
This is one of the reasons the program was criticized in April after it burned funds and provided loans to several large chains, leaving countless small businesses without any kind of relief.
Welk Resort Group could not be reached for comment.
The PPP was originally created by the Small Business Administration (SBA) as part of the $ 2 trillion CARES law that was enacted in March. It has since allocated $ 669 billion to American businesses in the form of loans.
According to the SBA, it was intended as a direct incentive for small businesses to keep their workers on the payroll. About 650,000 businesses received this money.
“The loan can be partially or totally canceled if the company keeps the number of its employees and the salaries of the employees stable,” says the SBA.
The federal government has so far not released any data on beneficiaries. The new information includes the names and addresses of businesses that receive loans over $ 150,000.
Specific dollar amounts were not reported, but loans were grouped into five categories. The lowest range is $ 150,000-350,000, the highest $ 5-10 million.
Loans under $ 150,000 were reported without the name and address of the beneficiaries.
Tomme Arthur, co-founder and COO of Port Brewing / The Lost Abbey in San Marcos, told The Coast News that they received a PPP loan of between $ 250,000 and $ 500,000, which helped them to retain almost all of their employees.
“We had laid off about 25 to 30 employees by that time, and that money allowed us to bring these people back with confidence, knowing we had the ability to pay them. We are very grateful for that, ”said Arthur.
Arthur added that they applied for the loan in April and received it through Bank of America about two weeks later. Because they were able to devote at least 60% of it to their employees’ payroll, their loan will be canceled, according to SBA rules.