Workplace Fairness

Menu

Skip to main content

  • print
  • decrease text sizeincrease text size
    text

Among those who got PPP loans: Washington lobbying firms

Share this post

More than two dozen lobbying, public affairs and consulting firms got loans designed to help small businesses weather the pandemic.

More than two dozen Washington lobbying, public affairs and consulting firms received loans from the federal government to help them weather the pandemic, according to data released on Monday by the Small Business Administration.

Firms that derive more than 50 percent of their revenue from lobbying or political work are barred from receiving the loans — which can be forgiven if companies meet certain benchmarks — under the agency’s rules. The American Association of Political Consultants unsuccessfully sued to overturn the prohibition earlier this year.

But several lobbying firms secured loans through the Paycheck Protection Program despite the rules, including Van Scoyoc Associates, the No. 10 lobbying firm in town last year by revenue, according to a POLITICO analysis of disclosure filings. The firm received a loan of between $1 million and $2 million last month, which helped it retain 63 jobs, according to the data.

Van Scoyoc lobbies for clients that include Amazon, Comcast, FedEx and Lockheed Martin, according to disclosure filings. The firm didn’t respond to a request for comment.

Waxman Strategies, the lobbying firm run by former Rep. Henry Waxman (D-Calif.) and his son, Michael Waxman, also received a Paycheck Protection Program loan, which Michael Waxman said totaled less than $500,000.

Michael Waxman said the firm was able to apply for the loan because lobbying accounts for less than 50 percent of the firm’s revenue. “It’s only a small fraction of our work,” he wrote in an email to POLITICO.

“The last thing we want to do is lay off employees, now or at any time,” he added. “And we’re thankful the Paycheck Protection Program was designed to provide support for small businesses like ours to weather financially stressful conditions and a still uncertain economic future.”

The lobbying firm APCO Worldwide received a loan of between $5 million and $10 million, while the lobbying firm Banner Public Affairs got between $350,000 and $1 million, according to the data. Another lobbying firm, the Conafay Group, received between $150,000 and $350,000.

Other lobbying firms that received the loans are primarily law firms, such as Miller & Chevalier; Kasowitz Benson Torres; Wiley; Kelley Drye & Warren; and Van Ness Feldman.

Kasowitz Benson Torres has done legal work this cycle for America First Action, a super PAC backing President Donald Trump’s reelection, as well as the Republican National Committee, according to campaign finance records.

Marc Kasowitz, a partner at the firm, also worked as a personal lawyer to President Donald Trump during special counsel Robert Mueller’s investigation into Russian interference in the 2016 election.

A Kasowitz Benson Torres spokeswoman said that “together with substantial cost-saving measures and greatly reduced partner distributions,” the loan “enabled us to preserve the jobs of our hundreds of employees at full salary and benefits without interruption.”

The Paycheck Protection Program was created by Congress in March to help businesses with fewer than 500 employees make it through the pandemic — with some exceptions. Strip clubs, payday loan companies and businesses that get most of their revenues from gambling, lobbying or political work were allbarred from receiving the loans under SBA rules.

The agency changed the rules for casinos and other gambling businesses in April under pressure from the casino industry and the Nevada congressional delegation, but lobbying firms weren’t so lucky. Trade groups such as the Business Roundtable and the National Association of Manufacturers are also prohibited from applying for the loans; more than 2,000 trade groups sent a letter to lawmakers last week urging them to change the rules.

But the rules don’t appear to have prevented a number of firms in the influence industry from receiving aid. Many of them are public affairs firms that aim to influence the federal government in ways that don’t require them to register as lobbyists.

The Clyde Group, for instance, states on its website that it can help “corporations and organizations achieve their policy, legislative, regulatory and legal goals by shaping strategies around decision-makers and relevant influencers.” The firm received between $350,000 and $1 million in April, helping to save 26 jobs, according to the data.

The DCI Group, which Bloomberg Businessweek reported in 2018 had conducted six Washington influence campaigns on behalf of hedge funds, received between $2 million and $5 million, helping to preserve the jobs of 96 employees, according to the data.

Neither firm responded to requests for comment.

At least one public affairs firm that received a loan has returned it.

Precision Strategies, a firm started by three veterans of President Barack Obama’s 2012 reelection campaign, received a loan of between $1 million and $2 million in May, according to the data. Stephanie Cutter, one of the firm’s co-founders, said they had applied for loan as a precautionary measure but ultimately decided they didn’t need it as much as others might.

“We returned the loan in full last month because we decided there were other small businesses across the country that were more deserving of this money than we were,” she said.

This blog originally appeared at Politico on July 6, 2020. Reprinted with permission.

About the Author: Theodoric Meyer covers lobbying for POLITICO and writes the POLITICO Influence newsletter. He previously covered the 2016 campaign for POLITICO and worked as a reporting fellow for ProPublica in New York. He was a lead reporter on ProPublica’s “After the Flood” series on the federal government’s troubled flood insurance program, which won the Deadline Club Award for Local Reporting. He’s a graduate of McGill University and Columbia University’s Graduate School of Journalism.


Share this post

The Consultants Have No Clothes

Share this post

Image: Bob RosnerThis week’s blog should get me in a lot of trouble. But I think it’s time that someone points out that many of the biggest business consultants, authors and speakers run really crappy businesses of their own.

Okay, I’ve heard all the jokes about consultants. All go basically down the same path—a consultant is someone who borrows your watch and then tells you what time it is. But this is someone much worse. I’ve discovered that many of the biggest advisors to business run shops that are much more poorly managed than many of the corporations that pay them such lofty fees.

Ironic isn’t it?

Take consultant number one—I’ve confided the real names to my editor, but dear reader you’ll have to give me some slack here, because these guys are my colleagues, and in some cases my friends.

Consultant number one has had a series of best selling books, he commands top dollar on the speakers circuit and chances are that you’ve heard or seen him at one time during your career. He is so volatile that he is barely able to hold on to staff for more than a year. He says he’s a great listener, but his staff says to me that he yells far too much to ever hear a word they say. His office might as well have a revolving door on it.

Consultant number two is one of the nicest guys you’ll ever meet. But his company is remarkably dysfunctional. Its top leadership seems to change with the seasons. More than any other, this company almost seems to be dedicated to violating every principal that it espouses in its publications and presentations with its own people. It is a rudderless, often contradictory and cruel place that talks about sharing the credit but seldom does.

Consultant number three has built a company with some of the lowest morale anywhere. It’s hard to sort out where the battle lines are worse, in the executive suites or in the trenches. At one point I actually got to see some of the company’s internal survey results and couldn’t imagine that any of this company’s customers own results were that pathetic. Employees felt that management was more likely to knife them in the back then pat them on it. Although there was a lot of talk about values, the organization seems to only hold one value dear, and that is making the sale.

Woody Allen once said that those who can, do. And those who can’t, teach. Clearly those who really can’t do something become top-priced consultants.

So what can we do about this? I’m not suggesting that anyone throw out the baby with the bathwater. Each of these three people I referred to above has an important message and strategies to share. I just believe that corporations need to do a better job of due diligence with the messengers it picks before it starts ramming the fad of the week down its own people’s throats.

Look at each possible vendor as a little laboratory for their own principals. Ask for proof that they eat their own dog food and practice the very principals that they are foisting on you, and the rest of the business world.

Many of you are probably saying to yourself that this doesn’t really matter. It all goes back to the “Hawthorne Effect”, remember, that’s where a company turned up its lights and found that productive increased. Then when productivity stabilized they tried turning the lights down and found—like magic—that productivity magically increased again. The lesson, is that over the short haul almost anything you do can potentially increase productivity.

So Corporate America do your homework. Just because someone is a brand name, don’t assume that their principles work in the real world. That’s the bad news. The good news, is that the due diligence isn’t that hard to do. You just have to take the pulse of the employees who work for the company you are thinking about hiring. Ask to see recently survey results and staff turnover rates. I can guarantee that often you’ll be surprised by what you find.

About the Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. Check the revised edition of his Wall Street Journal best seller, “The Boss’s Survival Guide.” If you have a question for Bob, contact him via [email protected].


Share this post

Follow this Blog

Subscribe via RSS Subscribe via RSS

Or, enter your address to follow via email:

Recent Posts

Forbes Best of the Web, Summer 2004
A Forbes "Best of the Web" Blog

Archives

  • Tracking image for JustAnswer widget
  • Find an Employment Lawyer

  • Support Workplace Fairness

 
 

Find an Employment Attorney

The Workplace Fairness Attorney Directory features lawyers from across the United States who primarily represent workers in employment cases. Please note that Workplace Fairness does not operate a lawyer referral service and does not provide legal advice, and that Workplace Fairness is not responsible for any advice that you receive from anyone, attorney or non-attorney, you may contact from this site.