The U.S. Treasury website says that forgivable loans from the Paycheck Protection Program (PPP) were meant to provide “small businesses with the resources they need to maintain their payroll,” but some of the loans seem to have gone to businesses that aren’t so small.
Beaumont law firm Provost Umphrey received $1-2 million in PPP funds, Thomas J. Henry Law of San Antonio $5-10 million, Baron & Budd of Dallas $2-5 million, Houston’s Arnold & Itkin $1-2 million, the Carlson Law Office $2-5 million, etc.
Plus, some of the forgivable PPP loans secured by large local law firms seem to have been used for purposes other than payroll. Some appear to have been used to facilitate donations to Democratic political action committees like First Tuesday and Texans for Insurance Reform.
First Tuesday is a Houston-area PAC that buys media and gets out the vote for Democrat candidates. The ironically-named Texans for Insurance Reform actually opposes reform and seeks to elect state legislative candidates who will restore the good old days when doctors and insurance carriers were fleeing Texas to avoid predatory attorneys.
Harris County Republican Precinct Chairman Mark McCaig has exposed several Texas law firms that made substantial contributions to these PACs after receiving PPP loans.
The Ammons Law Firm received between $350,000 and $1 million and contributed $100,000 to First Tuesday, Raizner Slania, LLP got between $150,000 and $350,000 and gave $25,000, Perdue & Kidd got between $150,000 and $350,000 and gave $50,000, and Laminack, Pirtle & Martines got between $150,000 and $350,000 and gave $50,000.
Watts Guerra secured a $1-2 million PPP loan and made a $50,000 contribution to Texans for Insurance Reform, and Baron & Budd got $2-5 million and gave $25,000.
“The fact that these law firms had ample financial resources on hand to make generous political contributions just weeks after receiving ‘Paycheck Protection’ loans warrants investigation . . . into whether these law firms made truthful certifications about the necessity of the loans to support their operations,” says Mark McCaig.
We agree.