PPP Loans Flow to Energy Companies Backed by Deep-Pocketed Private Equity
Summary
Congress designed the Paycheck Protection Program (PPP) to help small businesses remain afloat and ensure they continued to pay their employees, rent, mortgage interest and utilities, during the coronavirus pandemic. Formed last year with KKRs financial backing, Spur Energy is focused on acquiring and developing oil and gas assets across the United States. In the second quarter of 2020, it raised $16 billion, a record quarter figure for the firm and made over $698 million in profit in the first 6 months of the year seemingly plenty of money to help its portfolio companies weather the pandemics market uncertainty.Laramie EnergyAnother example involves a natural gas fracking company, Laramie Energy, which received $1 to $2 million loan to retain 27 jobs. In April 2020, Energy Spectrum closed its eighth venture capital fund, amounting to $969 million, which the firm is currently investing. Kayne Anderson has raised at least $1 billion for its eighth energy fund, according to federal filings, and continues to seek commitments.The list below shows private equity-backed oil and gas companies that were awarded PPP loans, based on data from the SBA and Pitchbook.