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Gabriel Aponte

The Aspen Institute think tank announced it would return $8 million in federal small-business funds after a Thursday meeting of its board of trustees.

The decision marked an about-face for the nonprofit organization, which had <a href="https://www.washingtonpost.com/business/2020/05/13/aspen-institute-think-tank-receives-8-million-federal-small-business-loan/" target=_blank>argued</a> Wednesday that the funds were necessary to keep its 430-person staff on payroll despite a $115 million endowment and several billionaires among its trustees.

The decision comes one day after The Washington Post revealed the institute had received the loan. The D.C.-based group joins a series of public companies, the Los Angeles Lakers and other larger employers that applied and received money from the Small Business Administration fund, only to later give it back.

The fund, called the Paycheck Protection Program, offers forgivable loans to small businesses but changing guidance from the government has made it difficult for some larger borrowers with other access to capital to determine whether they should keep the money or not. Applicants must meet the SBA’s definition of a small business, which includes having fewer than 500 employees or meeting alternate requirements.

“We believe that our application, which was made in the first week of the PPP, was consistent with the goals of the program. Upon listening to our communities and further reflection, we have made the decision to return the loan,” said spokeswoman Amy DeMaria in a statement. “The Aspen Institute is committed to doing our part to help the country and the world both recover from and rebuild after this global pandemic. We stand with all who are trying to make a difference in very difficult times.”

DeMaria did not say how the reversal would affect the organization’s employees or how Aspen otherwise planned to plug its budget holes.

The group’s many conferences and forums, the bread-and-butter of its operations, have been canceled. A 98-room conference center it owns in Aspen is closed and forecasting substantial losses. Overall, the D.C.-based nonprofit organization is projecting a loss of between $14 million and $17 million for 2020.

In defending the initial decision to keep the loan Wednesday, Aspen said it had already received board approval to tap into its endowment for $7.5 million but that about 80 percent of its endowment funds were restricted and could not be used for operating purposes.

Aspen had an endowment of more than $115 million at the end of 2018, according to its most recently available <a href="https://projects.propublica.org/nonprofits/organizations/840399006/201932679349300113/full">tax filing</a>. Its board includes former Disney Chairman Michael Eisner and Chairman James S. Crown, a member of one of America’s <a href="https://www.forbes.com/profile/crown/#6b0e6b846044">wealthiest families</a>.

Aspen Institute think tank receives $8 million federal small-business loan

Relying on the government’s money did not sit well with some of the group’s many high-achieving fellows and forum moderators. Aspen fellow and moderator Dele Olojede, a Pulitzer Prize-winning reporter, called the decision to keep the money a contradiction of the organization’s mission to foster service-oriented leadership for the public good.

“Those who purport to be values-based and public-spirited leaders cannot at the same time put self interest first, when there is so much human suffering and death,” Olojede told The Post before Aspen decided to return the money.

Decisions about who should receive and accept the funds have been complicated by evolving and sometimes contradictory guidance from the Treasury Department and SBA. Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza have heralded the program as a success. More than 4.2 million businesses and nonprofit organizations have received a total of more than $531 billion in funding for the program through May, according to recent data.

White House, GOP face heat after hotel, restaurant chains helped run small business program dry

SBA officials say they mostly rely on the good faith of applicants to self-certify that they are in need of the funds because of uncertainty created by the <a href="https://www.washingtonpost.com/coronavirus/" target="_blank" class="contextual_link">coronavirus</a>, but will examine loans of $2 million or more. Loans will be forgiven so long as they are used appropriately.

The SBA has so far refused to release records on which businesses have received more than $600 billion in Cares Act funds, prompting a lawsuit by The Post and four other media organizations.

Founded in 1949, the Aspen Institute is led by President and CEO Daniel R. Porterfield and refers to itself a “nonpartisan forum for values-based leadership and exchange of ideas” through many events around the world including an annual festival in Aspen. Canceling that event alone, DeMaria said, meant a loss of $5 million to $6 million.

The Post has been a media partner on <a href="https://www.washingtonpost.com/pr/2019/05/21/washington-post-sponsor-aspen-institute-sports-societys-future-sports-series/?tid=lk_inline_manual_14&itid=lk_inline_manual_14">sports forums</a> hosted by the Aspen Institute.

University of Wisconsin-Madison

Jonathan O'Connell is a reporter focused on investigations. He has covered economic development, commercial real estate and President Donald Trump's business. He joined The Post in 2010.

Jonathan O'Connell

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Aspen Institute think tank to return $8 million in Small Business Association funds

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