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Company Founded by Newsom Received Federal Small Business Loan

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A Northern California-based winery and hospitality company founded by Gov. Gavin Newsom received a loan worth $150,000 to $350,000 from the Paycheck Protection Program, the federal rescue package aimed to help small businesses during the pandemic.

The company, PlumpJack Management Group, is part of a portfolio of brands that include an idyllic resort hotel near Lake Tahoe, five restaurants and bars, four Napa Valley wineries, a sports retailer and more.

Before taking office as governor in 2019, Newsom announced he would step away from his businesses and put his assets in a blind trust managed by Shyla Hendrickson, a family friend and attorney.

Hendrickson did not return emails from The Associated Press about whether Newsom’s businesses received any loans under $150,000, data the federal government did not release on Monday. Newsom’s office said they would get back to questions, including which jobs benefited from the low-interest loan, which the federal government will forgive if the money is used on payroll, rent and similar expenses. PlumpJack Management Group reported retaining 14 jobs thanks to the loan, which was approved on April 30.

Newsom founded PlumpJack as a wine and spirits shop in San Francisco in 1992. Financial disclosure forms give an imprecise figure on how much Newsom draws from the five companies making up the entire PlumpJack portfolio. For 2019, Newsom reported on annual state financial disclosure forms making at least $200,000.

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Read the full story from The Associated Press.

Editor's note: KQED is among the local businesses and media organizations that have received a PPP loan. This helps us continue to provide essential information and service to our audiences during the COVID-19 pandemic.

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