n a report from Fox News, businesses that were linked to Democratic California Gov. Gavin Newsom reportedly received a whopping $3 million in federal funds, while other small businesses were struggling to survive.

According to the reports, nine businesses that were linked to a company called PlumpJack Group LLC collectively received millions of dollars from the Payment Protection Program (PPP) loans. The said funding came from the Small Business Administration-run program and was divided into the nine establishments. On the other hand, small businesses that desperately needed additional government support failed to receive one.

In 1992, Newsom founded PlumpJack, which primarily deals with wine. When the Governor won his seat in 2019, he placed his business holdings on PlumpJack under a blind trust. The businesses under the company include five restaurants, a ski resort, a sports retailer, and even four Napa Valley wineries. In fact, one of the wineries, Villa Encinal Partners Limited Partnership, was given over $900,000.

While Newsom claimed that he had no business interest in PlumpJack, Sean Moulton of the nonpartisan Project On Government Oversight believed that the governor’s ties might have given the company a sense of preferential treatment. Moulton continued, “I’m not sure how the company justifies taking that much money when there were a lot of companies looking to get assistance.” He also noted that the millions of dollars were too much for a relatively small company that keeps 14 employees.

Moulton believed that the preferential treatment had cost other businesses to close down, especially those who failed to secure a loan. Generally, the government requires the business to spend 60% of their loaned amount to the employees in their payroll. With only 14 people working in the company, each employee should receive approximately $160,000 a year if it were to follow the federal guidelines.

“It’s unexpected for a 14-employee organization to get nearly $1 million,” Moulton claimed. He also believed that it ultimately defeats the purpose of payroll forgiveness. He argued that the loan was meant to keep entry-level employees who were relying on their paychecks.

The report added several issues that Newsom had faced during the coronavirus pandemic. Last month, the Governor came under fire after he broke coronavirus guidelines to attend his friend’s lavish dinner party. Newsom had since apologized for his behavior before adding that he should always practice what he preaches.

Add into that, five California Assembly members, most of whom were Democrats, were also caught dining outside despite Newsom’s strict coronavirus guidelines. The Assembly took a nice lunch before they were to decide on whether the state Capitol should be moved to the Golden 1 Center to ensure social distancing. The state urged residents to stay at home except for essential trips such as grocery shopping or pharmacy.