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Lakers RETURN $4.6million in coronavirus pandemic relief loans intended for small businesses

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Lakers RETURN $4.6million in coronavirus pandemic relief loans intended for small businesses

The Los Angeles Lakers were approved for a loan through a federal program intended to help small businesses during the coronavirus epidemic, it has emerged.

The NBA team has since returned the $4.6 million after learning the fund had been depleted.

The Paycheck Protection Program was created to infuse small businesses with $349 billion in emergency loans for payroll and other bills amid coronavirus lockdowns and social distancing mandates. 

But at least 75 companies that received the aid were publicly traded, the AP found, and some had market values well over $100 million. The Lakers were valued at $4.4billion before the outbreak, second among NBA teams, according to Forbes. 

‘The Lakers qualified for and received a loan under the Payroll Protection Program,’ the team confirmed to the Daily Mail. ‘However, 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.’

Los Angeles Lakers owner Jeanie Buss (center) returned the $4.6 million COVID-19 relief loan

Los Angeles Lakers owner Jeanie Buss (center) returned the $4.6 million COVID-19 relief loan

Los Angeles Lakers owner Jeanie Buss (center) returned the $4.6 million COVID-19 relief loan

The Lakers were valued at $4.4billion, second among NBA teams, according to Forbes

The Lakers were valued at $4.4billion, second among NBA teams, according to Forbes

The Lakers were valued at $4.4billion, second among NBA teams, according to Forbes

ESPN was the first to report the existence of the loan.

The 16-time NBA Finals champions, one of the most valuable teams in the league according to Forbes, had received a reported $4.6 million loan through the program. The team also has one of the largest local media contracts in sports, which generates a reported $150 million annually.

The Lakers’ decision comes as some large, publicly traded U.S. companies face backlash for obtaining aid from the program through a loophole, with a handful including Ruth’s Hospitality Group Inc and Shake Shack returning $20million and $10million loans, respectively.  

The NBA season has been placed on hold indefinitely since March, with other major North American leagues, including Major League Baseball, seeing their seasons upended due to coronavirus provisions mandating social distancing to slow the spread of the virus.

There had been an ESPN report claiming that team facilities could open as early as Friday, but that is reportedly being pushed back until May 8 at the earliest after the Atlanta Hawks hesitated to do so. Georgia is among the first states to re-open following the lockdowns. 

Ruth's Chris Steak House returned $20million

Ruth's Chris Steak House returned $20million

Ruth’s Chris Steak House returned $20million

The NBA was the first major professional American sports league to halt its season due to the coronavirus, doing so abruptly on March 11 after Rudy Gobert of the Utah Jazz tested positive.

But as a handful of American states, notably Georgia, are starting to loosen stay-at-home restrictions, the league could be moving to allow players to return to practice facilities in those areas.

The workouts would be voluntary, and individual in nature, EPSN said on its website.

It also reported that the league is working with teams based in locales with stricter stay-at-home orders to find alternative arrangements for their players.

Some American states have been much harder hit by the coronavirus than others.

The NBA was about one-quarter of the way through its regular season of 82 games for each team when the season was halted.

The playoffs had been scheduled to start last week and conclude in mid-June.

The Lakers' decision comes as some large, publicly traded U.S. companies face backlash for obtaining aid from the program through a loophole, with a handful including Ruth's Hospitality Group Inc and Shake Shack (pictured) returning $20million and $10million loans, respectively

The Lakers' decision comes as some large, publicly traded U.S. companies face backlash for obtaining aid from the program through a loophole, with a handful including Ruth's Hospitality Group Inc and Shake Shack (pictured) returning $20million and $10million loans, respectively

The Lakers’ decision comes as some large, publicly traded U.S. companies face backlash for obtaining aid from the program through a loophole, with a handful including Ruth’s Hospitality Group Inc and Shake Shack (pictured) returning $20million and $10million loans, respectively 

Source: Sound Health and Lasting Wealth

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