FaZe Clan CEO Lee Trink told Mashable that the loan allowed the company to retain all of its employees and that it intends to repay the loan in full. The loans will be fully forgiven if funds are put towards payroll costs, mortgage interest, rent, and utilities, according to the Small Business Administration. Summary List Placement
MrBeast YouTube LLC and Jeffree Star Cosmetics both received loans intended to provide relief to small businesses hurt by the coronavirus pandemic, Mashable reported today. A representative for MrBeast YouTube LLC confirmed to Mashable that the company had received a loan, saying that it employed over 40 employees (the ProPublica database shows that it only reported 7, which the representative told Mashable was a clerical error) and that many of its brand partnerships had fallen through during the pandemic.
Jeffree Star Cosmetics, run by the notorious YouTuber Jeffree Star, was caught in scandal earlier this year. PPP loans, part of the federal CARES Act, are intended to help small businesses weather the economic impact of the coronavirus pandemic and keep workers on payrolls. Read more:
JPMorgan Chase is looking into customers’ misuse of PPP loans — and the role the bank’s own employees played
Tens of thousands of PPP loans at high risk for ‘fraud, waste, and abuse,’ House Democrats say
More than 200 of the US’s worst-performing nursing homes received millions of dollars from the Paycheck Protection Program
Man charged with obtaining millions in COVID-19 relief funds by listing celebrities as employees, buying $200,000 Mercedes
Join the conversation about this story » NOW WATCH: 8 tools that make home-improvement projects easier Business Insider reported that approximately $670 million had been made available to small businesses through the PPP in 2020. When the program expired on August 8, the SBA had approved over 5.2 million loans. FaZe Clan, an esports company and brand, was valued at $240 million in November 2019. The company reported having 21 employees, according to SBA data compiled by ProPublica. FaZe Clan’s Head of Communications Chelsey Northern also told Mashable that the loan was worth roughly $1.1 million and that none of the funds were allocated to players or content creators. He’s best known for his charity giveaways and extravagant challenges. The Verge reported in 2018 that much of MrBeast’s money comes from brand deals. Representatives for Jeffree Star Cosmetics didn’t immediately respond to Insider’s request for comment. The Washington Post reported in July that data released by the SBA showed that businesses owned by members of Congress and private-equity backed chains were among those that received relief. In July, Morphe Cosmetics cut ties with the company, saying that it would “cease all commercial activity related to Jeffree Star and affiliated products” following a growing backlash against both Jeffree Star and collaborator Shane Dawson in June and July over past offensive content and controversy in the beauty YouTube world. Per the database, the esports company FaZe Clan Inc. According to ProPublica’s database of companies approved for over $150,000 in Paycheck Protection Program loans, disclosed by the Small Business Administration, MrBeast YouTube LLC and Jeffree Star Cosmetics both received loans worth between $350,000 and $1 million. also received loans, worth somewhere from $1 million to $2 million. MrBeast, whose real name is Jimmy Donaldson, is a YouTuber with approximately 42.8 million subscribers on his main channel.