US police unions have approved millions in aid for pandemics

WASHINGTON (Reuters) – At least six police unions qualified for a total of $ 2-4 million in emergency loans from the U.S. government to help small businesses stay afloat amid the coronavirus lockdown, according to Monday US Small Business Administration released data.

The unions represent approximately 110,000 law enforcement officers in Philadelphia, Houston, New York State, Michigan, and 11 southern states.

All in all, the six approved loans accounted for a small fraction of the $ 521 billion in lending, which is related to 4.9 million loans as of June 30. The data released on Monday does not indicate whether the loans have been paid off or whether the unions qualify for loan waiver.

The state paycheck protection program is designed to help small businesses and nonprofits keep their employees busy during the coronavirus crisis, and allows employers with 500 or fewer workers who have been harmed by the economic aftermath of the pandemic a forgiving, state-sponsored loan to apply.

The six police unions typically derive 90% of their revenue from membership fees, according to tax records audited by Reuters, and so would not hurt for cash other than layoffs. All six unions have their own workforce to support their members. Their combined loan applications said they wanted to keep 331 jobs.

Four forces with unions that have received loans – the New York State Police, Philadelphia Police Department, Philadelphia Sheriff’s Office, and Houston Police Department – told Reuters that they had not laid off or on leave during the pandemic, so The collection of contributions by their unions should not take place did not suffer any significant hits.

It is clear that the loan program, which is overseen by the Small Business Administration (SBA), has issued funds with few restrictions on who would benefit, said Liz Hempowicz, director of public order at watchdog group Project on Government Oversight .

“The SBA was responsible for making sure we weren’t just throwing public money on facilities that didn’t need them,” she said. “It’s common sense that we’d prioritize the industries that need it most, and I don’t know that right now that’s the police unions.”

James Miller, spokesman for the New York State Correctional Officers and Police Benevolent Association, said the union applied for a loan in anticipation of potential loss of revenue and possible layoffs in prison closings. The union, which represents approximately 26,000 white-collar workers and retirees, has borrowed between $ 150,000 and $ 350,000.

“Based on the current revenue projections for the rest of the year, we expect the loan will be repaid as it is prudent,” he said in an email to Reuters.

The other loan-approved police unions did not return repeated emails and calls for comments.

A loan of between $ 1 million and $ 2 million is eligible for the Southern States Police Benevolent Association, which represents approximately 58,000 law enforcement officers at the state, state, county, and community levels in eleven states. The Philadelphia Fraternal Order of Police, which represents 14,000 active and retired police officers and sheriff deputies from Philadelphia, has borrowed between $ 350,000 and $ 1 million.

Authorized to take out loans between 150,000 and 350,000 US dollars, was the work council of police officers in Michigan, which represents about 350 sheriffs and police authorities; the Houston Police Officers’ Union, which represents 5,300 officers from the Houston Police Department; and the Philadelphia Fraternal Order of Police Home Association, a separate not-for-profit organization that maintains a box for union meetings.

Police unions were among the at least 117 public and private sector unions that applied for loans under the program. The SBA has not released the names of the recipients of loans under $ 150,000.

The Pennsylvania AFL-CIO, which represents approximately 900,000 members from a variety of industries including teaching, performing arts, hospitality, manufacturing and construction, said in an email Wednesday that it had received $ 267,000 and would be asking for credit.

Many affiliates represent industries that have fired members due to the coronavirus, Rick Bloomingdale, AFL-CIO president of Pennsylvania, said in an email. With contributions falling, he said the union had decided to seek help.

“We decided to apply for the loan to keep our people busy.”