Oberweis Dairy secures $ 5.6 million federal coronavirus loan
NORTH AURORA, IL – Oberweis Dairy received a loan of more than $ 5 million in April from the federal government’s Paycheck Protection Program to support its operations and employees amid the pandemic, according to data from the US Treasury published this week.
The company is chaired by millionaire state senator and US House candidate Jim Oberweis – who has invested millions in campaigns over the past twelve years – but said in a statement the company needed the PPP loan “to save jobs and the paychecks of its employees during this unprecedented period “. The company employs about 500 people at more than three dozen locations, according to its loan application.
“Without the PPP, it would at least have been prudent to close all the restaurants and some ice cream shops that we operate for a while,” which would have resulted in holidays or job cuts, the statement said.
Oberweis is challenging US Representative Lauren Underwood (D-Naperville) for her seat in the US House of Representatives in the November election.
A spokesperson for Oberweis Dairy told the Chicago Sun-Times that Oberweis does not take a salary of the company while he was chairman, despite his campaign statements indicating that he had a financial interest in the company. Oberweis’ wife Julie receives a salary from the company, reports the Sun-Times.
Oberweis Dairy was one of 255 Illinois companies to receive a loan of between $ 5 million and $ 10 million, the largest available under the Paycheck Protection Program. More than 202,000 state enterprises have received PPP loans, according to the data.
If PPP loans are used as intended – to cover salary costs, health care benefits, rent / mortgage payments, utilities or interest – the federal government will cancel the loans. If the funds are embezzled, however, the Small Business Administration will require companies to repay the portion of the funds that they embezzled. No business can receive more than one PPP loan.