Congressman Vern Buchanan’s car dealerships accepted millions in COVID-19 relief loans
Several businesses linked to U.S. Rep. Vern Buchanan, one of the wealthiest members of Congress, accepted millions of dollars in federal loans to support employees during the COVID-19 pandemic.
On Monday, the Department of the Treasury released the complete list of nearly 5 million loans approved nationwide. That list says three Buchanan-owned auto dealerships, including Sarasota Ford, accepted between $2.7 million and $7 million in loans.
The biggest loan went to Sarasota Ford, which received a loan of between $2 million and $5 million. The latest financial disclosure report filed by Buchanan shows that his stake in that car dealership is greater than $50 million.
Reached for comment Tuesday morning, a Sarasota Ford official said the loan was critical in protecting nearly 200 employees from layoffs or furloughs.
“The Paycheck Protection Program has been a lifeline for our workers. Sarasota Ford, with 184 employees, applied for and received funding through the program. Sales and traffic at dealerships across the country have been severely impacted by coronavirus,” said Toni Trip, Sarasota Ford’s CFO. “Thanks to the PPP, we were able to pay workers who otherwise would have been laid off or furloughed.”
The guidelines of the Paycheck Protection Program allow the loans to be forgiven if businesses take certain actions, such as keeping full-time employees on staff and not reducing wages.
Buchanan, R-Longboat Key, voted for the $2 trillion CARES Act, which passed with overwhelming bipartisan support. The package offered $365 billion in loans meant to protect small businesses struggling to stay afloat during the coronavirus pandemic.
In a statement provided to the Bradenton Herald, Buchanan also downplayed the acceptance of loans at a company that he hasn’t run since before he was elected. His son Matt is listed as the dealership’s general manager and operating partner.
“I would hope that any eligible small business in our area would use the program to make sure their workers continued to get paid during this difficult period. The program is designed to keep employees on the payroll, instead of being laid off,” Buchanan said. “I can’t speak for Sarasota Ford. I haven’t managed the business for 14 years. But I would hope that small businesses in our area would apply to avoid laying off workers.”
In addition to the Sarasota dealership, Buchanan also has part ownership in dealerships in Cocoa, Fla. and Elizabeth City, N.C. Both of those dealerships accepted PPP loans, as well.
The Trump administration issued an exemption for all members of Congress to receive these loans without an ethics review, the Washington Post reports. That didn’t stop state Rep. Margaret Good, D-Sarasota, who is challenging Buchanan for Florida’s 16th Congressional District seat in November, from calling out Buchanan’s “personal gain.”
“When Vern Buchanan first ran for Congress, he admitted that it was a ‘very tempting environment’ for personal gain but promised that he would not be tempted because of his personal wealth,” Alex Koren, Good’s campaign manager, said in a statement provided to the Bradenton Herald.
“Now we find out that the fourth-wealthiest member of Congress couldn’t resist taking millions in government funds during a pandemic, while his constituents struggled to get small business loans and unemployment benefits,” Koren continued. “We can’t afford any more of Buchanan’s broken promises.”
Treasury documentation indicates that Good, who works as a trial lawyer at the Sarasota-based Matthews Eastmoore law firm, may have also benefited from the federal loan program. The company accepted a loan between $150,000 and $350,000 to protect 20 jobs. According to her financial disclosure form, Good, however, isn’t a partner and does have not have ownership in the law firm.
Max Goodman, Buchanan’s campaign manager, called Good’s criticism “shameless.”
“She thinks it’s OK for her high-priced criminal law firm Matthews Eastmoore to receive federal PPP funds but not Sarasota Ford. If she feels that way, then Matthews Eastmoore should immediately return the money it applied for and received under the program,” Goodman said in a statement provided to the Bradenton Herald.
“She needs to explain why defending criminals merits public aid from the very taxpayers who were the victims of these crimes. Margaret Good and her law firm have defended Ponzi schemers and scam artists accused of ripping off senior citizens and other ordinary people in our community. Why should taxpayers’ money go toward helping this law firm and Margaret Good?”
According to the Matthews Eastmoore website, the law firm focuses on civil litigation and education law. Good personally specializes in professional malpractice, personal injury and litigation law.
“The Buchanan campaign should get their facts straight before firing off desperate attempts to deflect from Vern’s corruption. Matthews Eastmoore isn’t even a criminal law firm. Margaret did not help create the PPP program, she didn’t apply for a loan and she didn’t receive one,” Koren said, noting that the law firm paid Good a total of $20,000 last year. “If I worked for a member of Congress who voted to give himself millions in taxpayer funds and then skipped a vote to hide it, I too would be desperate to change the subject.”
Good and Buchanan will face each other in the general election on Nov. 3 to represent the 16th Congressional District, which includes Manatee County and parts of Sarasota and Hillsborough counties.
This story was originally published July 7, 2020 at 12:33 PM.
