State aid is also available to companies in the United States affected by the economic consequences of the corona virus – but the companies belonging to the presidential family are not entitled to this.
The Democrats prevailed: The decision to provide government aid to companies in the corona crisis stipulated that companies should receive no aid from members of the government or from White House employees. This is to prevent politicians from enriching themselves. Now the chief adviser Jared Kushners Kushner Companies and US President Donald Trump’s Trump Organization are missing the income, the president has already asked for deferral of rental and loan payments.
Free sales space at Kushner Companies
Both Trump Organization and Kushner Companies focus on the real estate business, which has largely come to a standstill with the spread of the corona virus. In the industry, sales are put on hold and new tenants are difficult to find.
This is also the case for Kushner Companies, the company of Donald Trump’s son-in-law and his chief adviser Jared Kushner. Since Gulliver’s Miniature Wonderland, one of the main tenants of the former New York Times building, filed for bankruptcy last October, the company has found no new tenant. The free space since then accounts for approximately 20 percent of the sales area of the building, which is why Kushner Companies is in default with loan payments until February this year. Payments have been missing since March and it is not foreseeable that a new tenant will be found in the near future.
Trump Organization: Buildings remain closed
Many Trump Organization properties are hotels: The Washington Post reported at the end of March that 7 out of 10 of the properties were closed with the company’s main income. Over 500 employees have already been laid off and the hotels, which are still open, generate only a fraction of the income from normal operations. This is mainly due to the fact that bars and lounges were already closed at the end of March, in accordance with local regulations. Since even trips are hardly taking place, the D.C. Hotel is now 5 percent occupied, hotel managers probably promised a comeback on social media and thanked the remaining guests.
Trump personally asked for deferral
In early April, Deutsche Bank received requests from the Trump Organization regarding the deferral of various loan payments – there was probably still no decision. Likewise, requests were made to the Palm Beach County, Florida district government whether leases for an organization’s golf club could be suspended. No decision has yet been made on this either. Deutschlandfunk also reports that Donald Trump’s son Eric was negotiating with the relevant government agency GSA about a postponement or discount. It is probably a building in Washington that belongs to the government and in which the “Trump International Hotel” is operated.
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The problem with this is that Donald Trump, with his great influence as president, is known for using his office to create a mood against companies – so applications from his family cannot be treated like other applications.
However, as no decisions have yet been made and normal operations of the companies cannot be resumed anytime soon, it remains to be seen how the financial situation of the presidential family will continue.
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