July 8, 2020 Read More →

More than 5,000 fossil fuel companies got $3B in bailout funds

Citizen Truth:

Over 5,600 fossil fuel companies, many of which were already struggling and heavily debt-burdened before the pandemic, have taken at least $3 billion in Covid-19 bailout aid from the federal government, according to an analysis by Documented and the Guardian of data released on Tuesday from the Small Business Administration (SBA).

The Guardian’s Emily Holden notes that the $3 billion figure is almost certainly far less than the companies actually received, as the SBA did not disclose full details of the federal aid. The real sum could be closer to $6.7 billion, with at least 475 fossil fuel companies received at least $2 million, according to the report.

“A separate review by the watchdog Accountable.US and the Guardian found that millions of dollars in coronavirus aid has also gone to companies with histories of significant environmental violations,” reported Holden.

The Federal Reserve’s pandemic reaction, which American Prospect editor David Dayen has called an “unprecedented rescue of corporate America” facilitated by a “$4.5 trillion slush fund”, follows a decade of low interest rates that have enabled U.S. companies to expand through cheap credit. This policy has significantly impacted the US fossil fuel industry, which as of April 2020 has more than $700 billion in outstanding debt, according to the Institute for Energy Economics and Financial Analysis. 

[Peter Castagno]

More: Fossil Fuel Companies Have Used At Least $3 Billion In Federal Covid-19 Aid

Posted in: IEEFA In the News

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