SAN FRANCISCO (CBS SF) — The town’s largest company landlord, Veritas Investments, admits it utilized for and obtained a Paycheck Safety Program small enterprise mortgage for $3.6 million.
In a press release, Veritas defended its mortgage: “With our revenues deeply impacted and a scarcity of entry to capital, we furloughed vital parts of our workers and applied wage cuts throughout the board … The PPP mortgage allows us to avoid wasting the roles of entrance line staff and is crucial to our enterprise operations.”
The corporate has fewer than 200 staff. The federal Paycheck Safety program or PPE is earmarked for small companies, which it defines as firms with fewer than 500 employees.
“They did it truthful and sq. nevertheless it’s not proper,” mentioned San Francisco Supervisor Aaron Peskin, who believes Veritas didn’t deserve the mortgage.
“Most tenants and landlords are working it out,” Peskin added. “Everyone’s on this collectively. However Veritas has finished quite a few issues earlier than and through covid-19 that actually are usually not acceptable to this society.”
In a collection of studies, KPIX 5 has profiled dozens of tenants who’re suing Veritas, accusing the corporate of harassing rent-controlled tenants with fixed renovations. Different tenants mentioned they’ve endured lease will increase as Veritas handed alongside its mortgage debt.
“I believe a number of tenants would say it’s stunning, but additionally not stunning given the historical past of Veritas in San Francisco,” mentioned Brad Hirn, an activist with the Housing Rights Committee.
Hirn mentioned Veritas ought to give the cash again or share it with different companies, together with Veritas tenants who utilized however didn’t obtain PPP funds.
In keeping with the Census Bureau, solely 38% of American companies that requested for the PPP obtained the federal help. In California, it’s decrease: solely 21.5percent% obtained requested PPP.
“Most tenants are literally paying lease,” mentioned Hirn. “They’re making these onerous selections. They’re giving unemployment or stimulus checks to their landlords. So this notion that they’re shedding income, that they’re struggling a hardship, that they’re a small enterprise is insulting to the truly small companies.”
Veritas mentioned it should use the cash to carry again furloughed employees.
“These are the upkeep folks, constructing managers and our resident providers staff who work onerous day-after-day to verify our residents sheltering in place proceed to obtain the top quality residing expertise they deserve,” the assertion mentioned.