Dolphin Entertainment, the parent of 42West, said it took a total of $2 million in loans under the government’s Paycheck Protection Program including $725,000 for the public relations powerhouse.
Dolphin said $725,000 of the five separate loans went to 42West, an agency whose A-list clients include Tom Hanks and Meryl Streep. The proceeds from each PPP Loan will be used in accordance with the terms of the CARES Act program, Dolphin said in an SEC filing. The loans mature between April 19-23, 2022 and with an annual interest rate of 1%. They’re meant to give small companies decimated by the coronavirus pandemic a lifeline.
A few entertainment companies have been in the mix for PPP Loans including independent studio Cinedigm and radio broadcaster Emmis.
Dolphin said its loans also went to the parent company and to subsidiaries Shore Fire Media, Viewpoint Computer Animation and The Door Marketing Group for the amounts of, respectively, $54,900, $322,200, $321,000 and $672,700.
A second round of PPP funding for $349 billion was recently released and banks again are snowed under by requests from small businesses. The first wave opened on April 3 for $310 billion and disappeared quickly amidst criticism that not all of it was getting to the neediest companies. The Los Angeles Lakers were among a string of recipients to return their $4.6 million in PPP loan money.
Treasury Secretary Alan Mnuchin earlier in the day declared the federal program an “overwhelming success,” helping 30 million workers en route to an eventual 60 million. He said 1 million loans so far have gone to companies with 10 or fewer employees. He also warned larger entities to stay away from the pot, threatening them with ‘liability’ if they don’t, although its not clear that they actually broke any rules.
The goals is to keep businesses viable and help them keep staff. The filing noted that all or a portion of the PPP loans may be forgiven upon application to the lender for certain expenditure amounts made, including payroll costs, during the eight-week period beginning on the date of first disbursement.