Kanye West's Yeezy Company Got Over $2 Million From Federal Government

Yeezy, Kanye West’s fashion business, received over $2 million through the Paycheck Protection Program (PPP) which was disclosed by the Small Business Administration (SBA) this week. The company stated that they were able to save 106 jobs as a result of the SBA program which is precisely what the PPP loans are supposed to do; help businesses that are experiencing difficulty due to the COVID-19 pandemic. 

Yeezy is a fashion brand that specializes in clothing and sneakers. Recently, Kanye has discussed plans to expand his brand into the beauty and skincare sectors. He has also secured a partnership with Gap to release more Yeezy branded clothing. Like many other retail businesses in the world, Yeezy has been affected by the COVID-19 pandemic. This is likely why Kanye’s business applied for the PPP loan, the business wants to ensure they survive the current economic conditions. In addition to this news, Kanye has also announced that he will be running for president in the United States 2020 election. 

Related: Kim Kardashian Sold a Big Stake in KWW 

According to THR, the PPP program was passed in May and its purpose is to be a lifeline for small businesses struggling to stay afloat financially. Because salaries and wages are the largest expense for most businesses, this program has enabled companies to keep their employees on board despite the current economic conditions. The loans are forgiven if the businesses spend the full amount of money on eligible costs which is primarily payroll expenditures. However, the amount of forgiven debt is reduced if the company reduces the amount of full time employees or cuts pay by more than 25%. The idea is to force businesses to use the loan for their labor force as opposed to other expenditures.

Most businesses in the United States qualified for the SBA’s PPP program. If you had 500 or less employees within your business, you were allowed to apply for a loan to cover up to eight weeks of payroll costs. The PPP loans cover a maximum of two and a half times the company’s average payroll cost with a $100,000 per employee cap and a $10 million loan maximum. The loans were not restricted to corporations only; sole proprietorships, independent contractors and self-employed people were also eligible to apply. Unfortunately, contractors couldn’t include their own payroll costs on the application form as this was seen as a conflict of interest. At least people in these situations could help their fellow employees. 

As Kanye West is a small business owner, it makes perfect sense that he would apply for this financing and use it to keep his employees working. Although, when a rep for West was asked about the PPP loan, they didn’t immediately comment. We can only hope that this isn't an indicator of something going on behind the scenes. 

At first glance, Yeezy’s $2 million plus loan seems excessive, especially for a famous, wealthy rap star like Kanye. However, he is only doing what other businesses are doing, using the resources available to stay afloat during this challenging financial time. Given that the Yeezy brand is partnering with Gap and expanding into the beauty and skincare markets, the business probably doesn’t have a lot of idle cash to handle the current level of financial stress. The PPP loan should be more than enough to get the Yeezy business through the COVID-19 pandemic.

This has been an exciting month for Kanye, first he announces his candidacy for president and now a hefty business loan. What will Kanye do next? Hopefully he’ll go back to his roots and release new music!

Next: Kylie Jenner is Accused of Exploiting Workers That Make Her fashion Line

Source: THR