The embattled head of the state’s Democratic Committee was quietly raising $6.1 million in federal pandemic relief loans for various ventures he runs — yet those firms donated $54,000 to governments’ campaigns during the same period. Hochul and Cuomo, records show.
Jay Jacobs — who is being urged to resign by mostly progressive members of his own party over last week’s poor showing of state Democrats in last week’s elections — is the owner or chief executive of at least 11 companies, including several summer camps in New York and Pennsylvania . that secured $2,919,844 in 2020 Paycheck Protection Program loans and another $3,194,596 last year, records show. The money was used to pay the salaries of hundreds of full-time employees.
Despite seeking taxpayer help to operate during the pandemic, Jacobs’ businesses — which include Timber Lake Camp in Shandaken State, NY and Tyler Hill Camp in Pennsylvania — found enough available cash to raise $40,000 and $40,000, respectively $14,000 to be donated to campaigns by longtime allies Hochul and Cuomo in 2020 and 2021, state records show.
Some Democrats have called on the US Small Business Association, which oversees the PPP program, to investigate whether Jacobs abused the loans.
“If that’s true, it’s completely disingenuous,” said Senator Jessica Ramos (D-Queens). “If you’re going through a really tough time, then you don’t have any money to donate to your favorite candidates.”
Jacobs denied that any part of the loan went to campaign funds for his political friends.
“Any suggestion that PPP funds were used for campaign contributions is demonstrably and factually incorrect – both as to when we received it and the fact that the PPP loans have been reviewed by the SBA and confirmed that they were used for their intended purposes,” said Jacobs.