Los Angeles Lakers took a loan designed to help small businesses during COVID-19. Here’s why the team gave it back

Los Angeles Lakers forward LeBron James dribbles during the first half of an NBA game against the Philadelphia 76ers Tuesday, March 3, 2020, in Los Angeles. | Mark J. Terrill, Associated Press

Los Angeles Lakers took a $4.6 million loan

The Los Angeles Lakers received $4.6 million from the federal government program to help small businesses during the coronavirus pandemic, but later returned it, according to ESPN.

• The Lakers requested relief from the Small Business Administration’s Paycheck Protection Program. The team received a loan like many other businesses through the country.
• But the Lakers returned the money after reports surfaced of other businesses returning the loans.
• The Lakers said in a statement: “The Lakers qualified for and received a loan under the Payroll Protection Program. Once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need. The Lakers remain completely committed to supporting both our employees and our community.”

What’s the reaction?

• Treasury Secretary Steven Mnuchin said Tuesday on CNBC’s “Squawk Box” that the Lakers’ decision to take the loan surprised him. He said the loans were meant to help small businesses survive the coronavirus pandemic.
• Mnuchin said: “I’m not a big fan of the fact that they took a $4.6 million. I think that’s outrageous.”
• He said he “would have never expected in a million years that the Los Angeles Lakers” would take that kind of loan. He said he was happy the Lakers returned the loan, though.

Not alone

• The Lakers weren’t the only major brand to take a loan under the program. Ruth’s Hospitality Group, which owns Ruth’s Chris Steak House, took a $20 million loan, according to The Hill. Shake Shack also took a loan from the program but later returned it.

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