Kanye West's Yeezy Brand Gets Multi-Million Dollar Loan from Government Stimulus Fund
Khloé Kardashian's Good American denim brand also received a loan from the Trump administration’s $2 trillion CARES Act
Kanye West's fashion company received millions worth of loans from the federal government as part of the Trump administration's $2 trillion coronavirus stimulus package designed to aid small and medium-sized businesses.
After mounting pressure to disclose which businesses received loans through the Paycheck Protection Program (PPP) established by President Donald J. Trump's CARES Act, the U.S. Treasury’s Small Business Administration released public records on Monday that list every loan.
According to the records of companies which were granted more than $150,000 in loans (which CNBC reports made up approximately 13% of the total number of loans), Yeezy LLC., West's high-end fashion label, received a loan between $2 to $5 million. The Treasury reports that the loan was filed through City National Bank and 106 jobs were saved through it.
Khloé Kardashian's Good American denim brand, which she co-owns with Emma Grede, also filed for a PPP loan. The company was expected to receive between $1 to $2 million (PEOPLE can confirm it got $1.2 million) and it is reported that 57 jobs were saved using loan. Neither Kardashian or Grede has taken a paycheck since the coronavirus pandemic began.
"Due to the dramatic global impacts of COVID-19, the Good American business took a significant hit," a brand representative for Good American told PEOPLE. "We have a large wholesale footprint and all of our partners were forced to close their stores, with many shutting down warehouses and canceling orders. Applying for and receiving the PPP loan was a necessary step we had to take to ensure the long-term survival of our brand and business. We are incredibly grateful to have received the loan as it has allowed us to maintain our employees' salaries and support our team."
The Paycheck Protection Program (PPP) initially set aside $349 billion in the stimulus law called the CARES Act to help small businesses keep their workers on payroll. After that funding quickly ran out, Congress set aside hundreds of billions more.
It was intended to help companies with fewer than 500 employees but garnered backlash when incidents were reported that larger companies received loans, including Shake Shack, which has around 189 restaurants and nearly 8,000 employees total. (Shake Shack CEO Randy Garutti and chairman Danny Meyer explained in an open letter on LinkedIn that they returned their $10 million loan.)
PEOPLE has reached out to Yeezy for comment.
The news comes days after West announced his plans to run for president in 2020 and his unabashed celebration of wife Kim Kardashian West's apparent billionaire status after the sale of her beauty brand, KKW, to Coty.
"I am so proud of my beautiful wife Kim Kardashian West for officially becoming a billionaire," he wrote on Twitter. "You’ve weathered the craziest storms and now God is shining on you and our family."
West also made big business moves himself earlier this month with the announcement of a 10-year partnership with Gap to bring his YEEZY designs to consumers at an accessible price point.
The star hasn't been shy about discussing his personal wealth and claimed in April 2020 that his net worth is more than $3 billion. However, Forbes reported that between West's many assets — including Yeezy, his music label and real estate — and his debt, the 43-year-old rapper is worth $1.3 billion.