ARIZONA NEWS

Phoenix-area trucking group asked to return coronavirus aid payroll loan

May 11, 2020, 11:15 AM | Updated: 2:52 pm

(Twittter Photo/EVO Transportation)...

(Twittter Photo/EVO Transportation)

(Twittter Photo/EVO Transportation)

PHOENIX – A Valley-based transportation company said it intended to keep the coronavirus relief federal loan that a House subcommittee wants back from five companies.

EVO Transportation and Energy Services of Peoria said in a press release Friday that the company qualified for the Payroll Protection Program under the terms set by the U.S. Treasury Department and U.S. Small Business Administration.

Firms were eligible “with less than $15 million in tangible net worth and less than $5 million in earnings in each of the past two tax years.

“EVO has and will continue to use the PPP proceeds for payroll.”

The Democrat-led panel also sent letters to Gulf Island Fabrication Inc., a manufacturer of marine vessels used in the energy sector based in Texas; MiMedx Group Inc., a biopharmaceutical company based in Georgia; Quantum Corporation, a video streaming and storage company based in Silicon Valley, California; and Universal Stainless & Alloy Products Inc., a steel manufacturer based in Pennsylvania.

The letters asked the companies to respond by Monday and inform the committee whether they are returning the money and by what date.

They said that the law providing the aid was passed by Congress to be a lifeline for small businesses who might be forced to lay off employees or shut down entirely.

“We did not intend for these funds to be used by large corporations that have a substantial investor base and access to capital markets,” the Democrats wrote.

The panel said the companies received loans of $10 million or more, are all public, have more than 600 employees and have a stock market value of more than $25 million.

EVO employs about 1,400.

The company said it did not “have access to capital markets (it sought unsuccessfully in March to raise equity from third parties in a private placement) and presently nearly all of EVO’s investors are unable to sell shares.

“EVO’s small market float is measured in thousands of dollars, not hundreds of millions of dollars. All of these factors support EVO’s application to the PPP which was consistent with the letter and spirit of the law.”

The Associated Press contributed to this report.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

The Kaibab National Forest will implement Stage 2 fire restrictions beginning on Friday....

KTAR.com

Kaibab National Forest to begin Stage 2 fire restrictions on Friday

The Kaibab National Forest will implement Stage 2 fire restrictions beginning on Friday.

2 hours ago

A motorcyclist died as a result of a three-car crash in Peoria on June 17, 2024. (AP File Photo/Mat...

KTAR.com

Motorcyclist dead after 3-car crash in Peoria

A motorcyclist died as a result of a three-car crash in Peoria on Monday afternoon, authorities said.

3 hours ago

Arizona Gov. Katie Hobbs signed the 2025 fiscal year budget on June 18, 2024. (Photo by Rebecca Nob...

KTAR.com

Arizona Gov. Katie Hobbs signs $16.1 billion budget for 2025 fiscal year

Arizona Gov. Katie Hobbs signed the fiscal year 2025 budget Tuesday that erases a $1.4 billion shortfall by curbing spending on higher education and more.

5 hours ago

Republican Cochise County Supervisors Tom Crosby, left, and Peggy Judd, right, face election interf...

KTAR.com

Judge rules election interference cases to continue for 2 Arizona county officials

A Maricopa County judge denied motions Tuesday by two Arizona county officials to dismiss their cases on potential election interference from 2022.

8 hours ago

Bash & Pop performs during the last Viva PHX in 2017. The downtown Phoenix music festival is return...

Kevin Stone

Viva PHX, a multivenue music festival in downtown Phoenix, returning after 7-year hiatus

Viva PHX, a multivenue downtown Phoenix music festival, is rising from the ashes in 2024 after a seven-year hiatus.

9 hours ago

File photos of lawyers Boris Epshteyn, left, and Jenna Ellis, who entered not guilty pleas in Arizo...

Associated Press

Last 3 defendants — Epshteyn, Ellis, Lamon — enter pleas in Arizona’s fake elector case

After the last three arraignments on Tuesday, all 18 defendants in the Arizona fake elector case have now pleaded not guilty.

10 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinic visits boost student training & community health

Going to a Midwestern University Clinic can help make you feel good in more ways than one.

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

Phoenix-area trucking group asked to return coronavirus aid payroll loan