Missouri Gov. Mike Parson has criticized federal aid. But he received a PPP loan
Missouri Gov. Mike Parson received a modest grant from the federal government this year to sustain his Bolivar cattle farm, records show.
It came months before Parson ended federal aid for the unemployed in Missouri, in a bid to push their return to the labor force.
Parson was approved on March 25 for a $6,288 loan through the Paycheck Protection Program (PPP) designed to help small businesses meet payroll during the COVID-19 pandemic, according to U.S. Small Business Administration data published by the investigative reporting outlet ProPublica.
The loan has already been forgiven, according to the records.
The money was for a business in the beef cattle ranching and farming industry in Bolivar, Parson’s hometown in southwest Missouri. He has often spoken of running a family cattle farm when not working in politics.
Missouri’s state government helped businesses secure millions in low-interest loans through Small Business Administration programs last year through the pandemic, Parson’s office has touted.
But as governor he has been reluctant to touch other forms of federal pandemic aid, saying in May he would wait until next year to begin spending $2.7 billion the state is receiving through the Biden aid package.
Most notably, he made Missouri the first in the nation this year to end additional unemployment benefits from the federal government that workers received on top of their traditional checks. He made the move alongside other Republican governors who said the checks were keeping workers at home and causing a labor shortage for businesses.
The results have not shown significant increases in job searches.
Parson’s office did not respond to a request for comment on Tuesday.
PPP loans
PPP was launched last April as a way to pump hundreds of billions of dollars quickly into the pandemic-ravaged economy and prevent layoffs.
Businesses that had fewer than 500 employees were eligible to get the low-interest loans approved through their banks. They did not have to prove a loss of business, and could keep the money entirely as long as they used most of it to pay workers for a certain period of time and did not lay off workers or cut pay. Other eligible businesses expenses for the money included rent, mortgage or utility payments.
If the business had fewer than 300 employees and showed at least a 25% reduction in business between 2019 and 2020, it could also get approved for a second forgivable loan.
After several rounds of loan disbursements, the program ended this May.
Parson’s cattle farming business is listed in the loan records as a sole proprietorship, so there were no employees to pay with the funds. His son, who owns Parson Cattle Co. in Bolivar, received two $13,000 loans through the program this year, also for a Bolivar sole proprietorship in the cattle farm industry.
It is not clear if Parson’s loan was for the same farm as his son’s. Both own land in Polk County. Parson’s son could not immediately be reached for comment on Tuesday.
State Rep. Peter Merideth, a St. Louis Democrat who has pushed for the state to spend its federal aid quicker on relief for small businesses and renters, said PPP was a “great” program but called Parson’s handling of unemployment aid “frustrating.”
After revealing it had mistakenly sent $150 million in benefits to 46,000 jobless Missourians during the pandemic last year, Parson’s Department of Labor and Industrial Relations initially was adamant it would recollect the money. The majority of those funds came from the federal government. His administration announced this month it would waive the federal portion for most recipients but continue recollections on the state’s portion.
“It’s just frustrating how happy he is to take federal aid that helps his family, while denying unemployed Missourians from getting all the federal aid they need, and fighting with them to take money back from them,” Merideth wrote in a message to The Star.
This story was originally published July 20, 2021 at 3:27 PM.