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Friday, July 10, 2020

Firm Tied to Trump Campaign Manager Brad Parscale Got $800,000 Paycheck Protection Loan

Posted By on Fri, Jul 10, 2020 at 12:04 PM

click to enlarge Brad Parscale appearing at a Student Action Summit in Florida. - WIKIMEDIA COMMONS / GAGE SKIDMORE
  • Wikimedia Commons / Gage Skidmore
  • Brad Parscale appearing at a Student Action Summit in Florida.
A company with close ties to San Antonio techie-turned-Trump 2020 Campaign Manager Brad Parscale scooped up a $780,680 loan through the federal Paycheck Protection Program, Mother Jones reports.

Parscale holds nearly 35% of the stock in CloudCommerce Inc., the financially troubled tech firm that landed the PPP loan, according to its yearend federal securities filing. That makes him the single largest shareholder in the Alamo City-based digital advertising business.

As of the end of last year, Cloud Commerce had 49 full-time workers, according to its financials.

The federal PPP program was intended to help small businesses retain employees during the economic crash brought on by the COVID-19 pandemic. However, the program has been criticized for handing out loans to businesses owned by members of Congress and large publicly traded chains. A law firm that represented President Donald Trump also received a PPP loan.

In April, the Federal Reserve waived insider dealing rules for the program, saying it wanted to ensure employers could get money quickly.

In a June 16 press release, CloudCommerce announced that it expects to tally $14 million in sales for 2020. Despite posting deep losses for the past two years, the company also projected net operating income of $1 million.

The press release makes no mention of the company landing the loan worth nearly $800,000.

CloudCommerce reported a net loss of $10.1 million on sales of $9.2 million for the 2019 calendar year. That compares to a net loss of $2.9 million on sales of $11.8 million for the prior year.

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