Ashford Group to return $59 million U.S. payroll loan (updated)

Ashford

03/05/2020 02:44

(Adds details from Schumer letter, company statement and
background)
    May 2 (Reuters) - Ashford Group of companies, run by a donor
of U.S. President Donald Trump, said on Saturday it would return
a $58.7 million loan it received from the government's program
to help small businesses survive the economic impact of the
coronavirus.
    U.S. Senate Democratic leader Chuck Schumer had sent a
letter to the Small Business Administration (SBA) demanding a
review of all loans made to Ashford, run by Trump donor and
Dallas hotelier Monty Bennett.
    According to media reports, the hospitality firm is the
biggest known applicant of the government's small-business
relief program. 
    The company said it would return the funds due to the SBA's
"recently changed rules" and "inconsistent federal guidance that
put the companies at compliance risk."
    The group's publicly traded companies overseen by Bennett
include Ashford Inc  AINC.A , Ashford Hospitality Trust Inc
 AHT.N  and Braemar Hotels & Resorts Inc  BHR.N .  urn:newsml:reuters.com:*:nL2N2CB04R 
    Schumer said in his letter that he was "deeply concerned
that large, publicly traded companies, like Ashford, may be
exploiting the Program." 
     The company said in its statement, "Some media and members
of Congress have falsely implied" that Ashford accessed
loopholes to qualify for the funds." 

 (Reporting by Aishwarya Nair in Bengaluru; Editing by Cynthia
Osterman and Alistair Bell)
 ((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;))