An ultra-exclusive golf course for a select few multi-millionaires and owned by a billionaire was awarded a federal loan meant to help small businesses keep their workers employed during the pandemic.
The Liberty National Golf Club in Jersey City, which charges a roughly $500,000 initiation fee to invitation-only members, received a Small Business Administration Paycheck Protection Program (PPP) loan for between $350,000 and $1 million, according to the list of recipients released by the Small Business Administration (SBA) last week. The club declined to disclose the exact amount of the loan.
The club, which has hosted the President’s Cup and the PGA’s Barclays tournament, listed 111 employees in its paperwork with the SBA. Owner Paul Fireman, the founder of Reebok whose net worth is estimated at $1.1 billion, would not say how the funds were spent, but a spokesman issued this statement on behalf of the club:
“Liberty National Golf Club met the eligibility requirements for receiving an Emergency SBA 7(a) loan, as outlined by the Small Business Administration, and has utilized the appropriated funds properly, as outlined by the Treasury Department and CARES Act.”
A spokeswoman for the SBA said the agency does not comment on individual recipients.
The loan program — part of the $2 trillion CARES Act — was seen as a lifeline to small businesses, such as restaurants, most affected by the shutdown caused by the pandemic. Golf courses were closed by the state in late March and were allowed to reopen in early June.
Small businesses received a small piece of the billions in loans. In New Jersey, churches, construction companies and politically connected law firms were among the recipients.
Fireman and the club have come under fire from park advocates for its attempt to acquire an environmentally sensitive portion of Liberty State Park to convert it into three golf holes with breath-taking views of New York Harbor and the Manhattan skyline.
Fireman has said the expansion is necessary to draw major PGA events.
Liberty National, which filed for the loan under the name “WA Golf,” wasn’t the only exclusive golf club in Hudson County to benefit from the program. Bayonne Golf Club, whose membership is also invitation-only, received a PPP loan for between $150,000 and $350,000. Published reports say the club’s initial fee is $75,000.
The Bayonne Golf Club listed 16 employees in its paperwork for the loan. The club did not respond to a request for comment.
CNBC.com reported that more than 400 country clubs and golf resorts received PPP loans.