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Party officials returned loan funds to Washington after elected members of the Florida Democratic Party raised “ethical concerns” about political organizations taking federal funds to help small businesses during the coronavirus pandemic.
“Paying back the funds was absolutely the right decision,” said Agriculture Commissioner Nikki Fried in a video conference Thursday morning, hours after the decision was announced.
“You saw that many of our big companies were getting significant amounts of money, and many of our small companies were not getting funding, were underfunded,” continued Fried, the only nationally elected Democrat. “(I) really would have liked the front end to have had more responsiveness to help so many of these small businesses and set more parameters.”
Shortly after Congress approved the paycheck protection program in April, the state applied for and received the interest-free loan, which was listed at over $ 350,000. Party officials said they applied because of concerns about payroll compliance and employee retention.
After the list of loan recipients was released this week, several Democratic lawmakers criticized the party for accepting funds to help small businesses and nonprofits during the economic downturn caused by the pandemic.
Senator Jason Pizzo, a Miami-Dade County attorney, said that political organizations seeking and accepting so-called PPP funds should return it promptly, citing “legal and ethical concerns.”
Pizzo suggested that the party’s decision would open them up to “partisan insults that only served to challenge the integrity of their own party”.
MP Anna Eskamani, D-Orlando, agreed with Pizzo, saying, “PPP was created for small businesses and nonprofits in need of urgent support during COVID-19, not political organizations.”
Senator Annette Taddeo, D-Miami added, “As a proud small business owner, I am appalled that anyone thought this was in any way morally or ethically correct, let alone politically wise!”
Following the criticism, the party issued a statement saying it would give up the money.
“The bank, the loan processor and representatives of the Small Business Association have approved the financing,” said party spokeswoman Luisana Pérez Fernandez in the statement. “It now appears that they made a mistake in approving the funding, so we’re volunteering to return it.”
The party’s loan was revealed Monday in a long-awaited data dump by the Small Business Administration, with the information showing how political affiliates and nonprofits benefited from the program. US Senator Marco Rubio, R-Fla., Was an architect of the PPP loan program.
The list of recipients also included a number of companies bound by Republican lawmakers.
The accounting firm Robinson Gruters & Roberts, where Florida GOP Chairman Joe Gruters works, and Trumbull Water Solutions, Panama City Rep. Jay Trumbull’s firm, each received at least $ 150,000 in interest-free loans. Gruters is also a Senator from Sarasota County.
New Senate President Wilton Simpson’s asbestos removal firm, Simpson Environmental Services, received between $ 350,000 and $ 1 million in small business loans, according to the data.
Caregivers Inc., an elderly care company run by the family of Republican Congressman Matt Gaetz, has received at least $ 350,000, according to information. Gaetz, a loyal ally of President Donald Trump, listed the company on his Congressional financial disclosure form.
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