A new report on federal spending reveals that the Small Business Administration has funded luxury brands like Rolex, Lamborghini and helped exclusive beach clubs, wineries, pet resorts, country clubs and even a gun club over the past several years.
The report from the American Transparency has won the attention of a taxpayer watchdog group that is giving SBA a “Golden Fleece” Award.
“It appears the Small Business Administration is bilking the American taxpayers to play favorites and bail out companies that can’t make it in the marketplace,” said Diana Banister, director of Citizens for the Republic. “The upscale companies benefiting from taxpayer largesse should get loans from their own bank.”
Millions of small business loans flowed to car dealers including Lamborghini Chicago, IL. AP Photo
The award was invented years ago by the late Sen. William Proxmire, a penny-pincher from Wisconsin who used it to shame lavish federal spending. Banister said Citizens for the Republic is reviving the award and will announce another every Wednesday as part of its Sunlight Project.
The spending report reviewed SBA loans from 2007 to 2013, and revealed that it doled out billions to businesses that could have received traditional loans.
Many of those loans went to luxury brands.
Below is the announcement from Citizens for the Republic:
ALEXANDRIA, VA – Citizens for the Republic today announced the revival of “The Golden Fleece Award,” first established by former Sen. William Proxmire (D-WI), who wanted to call attention to a government official or agency that egregiously wastes the taxpayers’ money. Sen. Proxmire presented 168 Golden Fleece Awards between 1975-1988. One award was presented to the Justice Department for paying for a study on why prisoners wanted to get out of jail.
The first CFTR Golden Fleece Award is presented to the Small Business Administration. The agency that is supposed to be making loans to small businesses and to keep the American economy humming has been making loans to Rolex, State Farm, Sears and other companies that would qualify for conventional bank loans.
A new report by American Transparency shows that from 2007-2013, the SBA made $67.23 billion in loans and guarantees. Most of the loans were between $1 million and $5 million. Some of the recipients included companies such as Rolex, Lamborghini dealers, Sears, as well as private equity funds and luxury resorts.
“It appears the Small Business Administration is bilking the American taxpayers to play favorites and bail out companies that can’t make it in the marketplace,” said Diana Banister, Director of Citizens for the Republic. “The upscale companies benefiting from taxpayer largesse should get loans from their own bank.
“This taxpayer-funded agency deserves the inaugural CFTR Golden Fleece Award, which will continue to expose corruption and cronyism,” said Ms. Banister.
Citizens for the Republic is reviving the Golden Fleece Award and will announce one every Wednesday as part of its Sunlight Project.
Paul Bedard, the Washington Examiner’s “Washington Secrets” columnist, can be contacted at [email protected].
