Among those who got PPP loans: Washington lobbying firms

Source: Politico | July 6, 2020 | Theodoric Meyer

More than two dozen lobbying, public affairs and consulting firms got loans designed to help small businesses weather the pandemic.

More than two dozen Washington lobbying, public affairs and consulting firms received loans from the federal government to help them weather the pandemic, according to data released on Monday by the Small Business Administration.

Firms that derive more than 50 percent of their revenue from lobbying or political work are barred from receiving the loans — which can be forgiven if companies meet certain benchmarks — under the agency’s rules. The American Association of Political Consultants unsuccessfully sued to overturn the prohibition earlier this year.

But several lobbying firms secured loans through the Paycheck Protection Program despite the rules, including Van Scoyoc Associates, the No. 10 lobbying firm in town last year by revenue, according to a POLITICO analysis of disclosure filings. The firm received a loan of between $1 million and $2 million last month, which helped it retain 63 jobs, according to the data.

Van Scoyoc lobbies for clients that include Amazon, Comcast, FedEx and Lockheed Martin, according to disclosure filings. The firm didn’t respond to a request for comment.

Waxman Strategies, the lobbying firm run by former Rep. Henry Waxman (D-Calif.) and his son, Michael Waxman, also received a Paycheck Protection Program loan, which Michael Waxman said totaled less than $500,000.

Michael Waxman said the firm was able to apply for the loan because lobbying accounts for less than 50 percent of the firm’s revenue. “It’s only a small fraction of our work,” he wrote in an email to POLITICO.

“The last thing we want to do is lay off employees, now or at any time,” he added. “And we’re thankful the Paycheck Protection Program was designed to provide support for small businesses like ours to weather financially stressful conditions and a still uncertain economic future.”

The lobbying firm APCO Worldwide received a loan of between $5 million and $10 million, while the lobbying firm Banner Public Affairs got between $350,000 and $1 million, according to the data. Another lobbying firm, the Conafay Group, received between $150,000 and $350,000.

Other lobbying firms that received the loans are primarily law firms, such as Miller & Chevalier; Kasowitz Benson Torres; Wiley; Kelley Drye & Warren; and Van Ness Feldman.

Kasowitz Benson Torres has done legal work this cycle for America First Action, a super PAC backing President Donald Trump’s reelection, as well as the Republican National Committee, according to campaign finance records.

Marc Kasowitz, a partner at the firm, also worked as a personal lawyer to President Donald Trump during special counsel Robert Mueller’s investigation into Russian interference in the 2016 election.

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