Home Speaker Nancy Pelosi known as Saturday for Veritas, one in all San Francisco’s greatest landlords, to return a $3.6 million Paycheck Safety Program loan that was supposed to assist small companies cowl bills and retain employees through the coronavirus pandemic.
“PPP loans should be directed first and foremost to the small businesses with the greatest need, particularly minority, women and veteran-owned businesses that are struggling,” Pelosi mentioned in a press release. “Larger companies like Veritas, one of San Francisco’s largest corporate real estate management firms, which has billions in assets and access to liquidity through other sources, were not the intended beneficiaries of PPP loans.”
Veritas Investments, which manages greater than 250 San Francisco properties and has a $Three billion actual property portfolio, issued a press release Sunday that mentioned it plans to repay the loan throughout the two years allotted by the federal authorities.
“We are also a business that needed the loan for its intended purpose, to meet our payroll and employ the people responsible for maintaining the buildings that house more than 8,000 San Franciscans,” Veritas mentioned within the assertion. “We understand that some recipients of the loan are applying to make it a grant, however that is not our intention. We will not keep it.”
Corporations can have loans forgiven in the event that they spend the cash on payroll, mortgage curiosity, lease and/or utilities within the eight weeks after they obtain a loan. A minimum of 75% should go to pay workers.
Veritas mentioned the cash will permit it to rehire 26 employees who had been furloughed because of the coronavirus well being disaster. The corporate had 196 workers earlier than the well being order. There are presently 170.
Tenants teams have repeatedly criticized Veritas for utilizing strong-arm techniques to get longtime tenants with lease management to maneuver out, together with noisy, disruptive building and “pass-through” costs, which permit landlords to jack up lease to cowl enhancements or upkeep.
“We recognize the challenges that all San Franciscans are facing during this time, and have worked hard to help our residents since before the shelter in place was implemented,” the Veritas assertion mentioned. “As COVID-19 emerged, we were the first manager to halt evictions, worked closely with the city to provide emergency housing for survivors of domestic violence and have worked hard to care for our residents. We will continue to develop additional programs for our residential and retail tenants, and will unveil more in the weeks to come.”
The corporate added that buyers, not the corporate itself, personal the buildings Veritas manages.
“Many assume we are a $3 billion business based on the value of the buildings we manage,” the assertion mentioned. “However, that is far from the truth.”
To qualify for a PPP loan, an organization should show that the cash is “necessary to support the ongoing operations of the applicant,” in line with the Small Enterprise Administration. Debtors should bear in mind “their current business activity and their ability to access other sources of liquidity.”
The Treasury Division and the SBA, which collectively handle the PPP loan program, mentioned Wednesday that the SBA would evaluation all loans of greater than $2 million.
Veritas doesn’t plan to return its loan cash, however different massive firms, together with Shake Shack and Ruth’s Chris Steak Home, have returned PPP loans. Greater than 180 public firms have obtained over $670 million in PPP funds and Congress has licensed one other $310 billion in funding for a second spherical.
“I join San Franciscans in calling on Veritas to return its PPP loan,” Pelosi mentioned.
San Francisco Chronicle workers author J.Ok. Dineen contributed to this report.
Aidin Vaziri is a San Francisco Chronicle workers author. E-mail: email@example.com