The Los Angeles Lakers announced this morning that they have returned a $4.6 million payment that was intended for small businesses.
The team had applied for the loan as part of the U.S. government’s Corona Virus Aid, Relief, and Economic Security Act. Once they received the money, they decided to return it after hearing the program’s $2.2 trillion budget had run out.
The team did make a statement regarding the matter:
“The Lakers qualified for and received a loan under the Payroll Protection Program. 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. The Lakers remain completely committed to supporting both our employees and our community.”
The U.S. government established the CARES Act in order to assist small businesses during the COVID-19 pandemic, but numerous speedbumps have caused issues in the program.
The Lakers were one of a few businesses that received the loan but decided to return it so others in need can be helped. Shake Shack, a specialty burger chain, and AutoNation, which is a Fortune 500 auto retailer, were alongside the Lakers in returning the funds.
According to ESPN, the Los Angeles Lakers are at an estimated worth of $4 billion. With a net worth this high, it is no surprise that that team returned the loan so others can utilize its need. Upon hearing the aide ran out, the team returned the loan within days.
An act like this is by the Lakers is not first since the pandemic started. In March, the team along with the Los Angeles Clippers and Los Angeles Kings started a fund to support the event staff at STAPLES Center as a result of the games being postponed.
