Four Mepco-Related Companies Cash in on Paycheck Protection Program Loans
Venture capital firm Seabury Capital entities approved for government guaranteed loans
Four companies related to the parent company of Chicago-based extended warranty and vehicle service contract funder Mepco were approved for U.S. Government backed Paycheck Protection Program (PPP) loans in May of 2020.
According to Mepco's website, Mepco is a wholly owned subsidiary of Seabury Capital. A fact sheet on Seabury's website reveals that Seabury Capital has at least 26 global offices and over $1 billion in assets.
Seabury Capital has historically been the investment holding company of its founder, John E. Luth, operating as a venture capital firm with ownership stakes in software and asset management businesses servicing the aviation and travel industries. Seabury Capital has operations in New York, Amsterdam, Beijing, Berlin, Chicago, Cordoba, Dallas, Dublin, Durban, Edison (NJ), Guernsey, Hong Kong, Houston, Jersey City, London, Los Angeles, Manila, Minneapolis, Mumbai, Nairobi, Ottawa, Seoul, Shannon, Singapore, Summit, NJ, Stamford (CT), and Tokyo.
A search of the PPP database provided by Small Business Association (SBA) reveals that four companies with ties to Seabury Capital received PPP loans of between $150,000 and $350,000.
Seabury Companies Receiving PPP Loans
The following Seabury-related entities are listed in the SBA's PPP database:
SAG Holding LLC. SAG Holding LLC is listed as the sole member of Seabury Securities, LLC, which is listed as a brokerage firm regulated by FINRA. According to the Seabury Securities website, "Seabury Securities is the industry’s leading practice delivering global investment banking and restructuring capabilities focused on Aviation, Aerospace & Defense, and Maritime." The SBA database for SAG Holding lists a NAICS code of 624410, which is defined as Child Day Care Services.
Seabury Capital Global Investments LLC. Seabury Capital Global Investments LLC is a Delaware Limited Liability Company which was previously named Seabury Capital Management LLC.
Seabury Maritime LLC. According to their website, "Seabury Maritime was established in 2017 as a premier investment banking and consultancy firm focused on global trade and transportation." Seabury Corporate Finance, owned by Seabury Capital, is the parent company of Seabury Maritime.
Seabury Solutions LLC. According to their website, "Seabury Solutions is a market leader within the aviation IT industry with over a decade of established expertise in the development and implementation of world-class software solutions." Seabury Solutions has offices in Ireland, Netherlands, Germany, Argentina, USA, Kenya, Australia, Philippines, and Korea. Seabury Solutions is also owned by Seabury Capital.
All four firms list an address of 1350 Avenue of the Americas in New York City, and their PPP loans were obtained through Wells Fargo Bank.
The Paycheck Protection Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll, and the SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
According to the Treasury Department, all loans over $2 million are subject to audit. "A small business or non-profit organization that is listed in the publicly released data has been approved for a PPP loan by a delegated lender. However, the lender’s approval does not reflect a determination by SBA that the borrower is eligible for a PPP loan or entitled to loan forgiveness. All PPP loans are subject to SBA review and all loans over $2 million will automatically be reviewed. The fact that a borrower is listed in the data as having a PPP loan does not mean that SBA has determined that the borrower complied with program rules or is eligible to receive a PPP loan and loan forgiveness. Further, a small business’s receipt of a PPP loan should not be interpreted as an endorsement of the small business’ business activity or business model."
The Paycheck Protection Program provided up to $659 billion in financial support to banks to make low-interest loans to companies and non-profits in response to the coronavirus pandemic.
Read more at U.S. Department of Treasury
There are no comments. Be the first to post a comment.