Larger Indiana businesses asked to return loan money

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INDIANAPOLIS, Ind. – A few larger Indiana businesses received federal loan money that was intended for smaller companies.

Some are calling for a return of this money— including Indiana U.S. Senator Todd Young. 

Paycheck Protection Program money was intended for small businesses.

“I think it’s important that these monies go toward their intended purpose, right?” said Sen. Young. “And the intent of this program was to try and make whole our businesses and our households.”

Three larger Indiana companies received PPP loan money. 

According to a Morgan Stanley Research Report released to NPR, Emmis Communications in Indianapolis has 560 employees. It was awarded $4.8 million. The company disputes that number, saying it has 449 employees and employs 238 Hoosiers.

Hallador Energy of Terre Haute employs 915 people and it received $10 million. Escalade Sports in Evansville got $5.6 million for its 468 employees. 

“I do think that there will be some public resistance towards those companies, those individuals who are tapping into a finite amount of money in a time when you have other small businesses unable to access them,” said Young.

Indiana U.S. Senator Todd Young said if these companies did not qualify for the loans, they should return the money.

“With that said, I value every single Hoosier job and to the extent a Hoosier is employed by larger enterprise, we have programs for those larger enterprises with 500 or more employees,” said Young.

We have yet to hear from Escalade and Hallador, but Emmis Communications released a statement.

Emmis has been negatively affected by the pandemic like every other broadcaster. Emmis is known for its people-first culture and has avoided furloughs for our employees despite the sharp declines in our businesses. The proceeds from the PPP loan enable us to continue to provide stability for our employees while we weather this storm together.

Kate Healey Snedeker, APR, Emmis Communications Corporation

Congress is working on a second round of PPP funds based on bank assets. 

“Specifically, we allocated 30 billion dollars to those institutions having 50 billion dollars or less in assets and an additional 30 billion dollars to those institutions with 10 billion dollars or less,” said Young.

He said this is the hope Indiana businesses can hold onto if they weren’t approved the first time.

“We want to make sure that every Hoosier stays attached to our workforce and gets to enjoy the dignity of work on the back end of this virus,” said Sen. Young.

At this point, none of the three companies that received the PPP funds have announced they will be returning the money. 

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