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New Report: Firearms Industry Took Over $150 Million In Paycheck Protection Program Funding Meant For Struggling Businesses, While Simultaneously Reporting Record Sales

6.14.2021

In 2020, As Small And Medium Businesses Struggled to Get Paycheck Protection Program (PPP) Loans, Firearms-Related Businesses And Organizations Took $156.9 Million, Including Businesses That Sell Ghost Gun Kits and Businesses With Deep NRA Ties

Report Reveals How Companies Bragged About Surging Demand While Taking Funds Meant For Struggling Businesses

NEW YORK — Everytown for Gun Safety Support Fund today released a new report, “The Firearms Industry and the Paycheck Protection Program,” that highlights the extent to which the firearms industry received extensive support from the Paycheck Protection Program (PPP) in 2020. 

Amid record gun violence, the gun industry reported record demand in 2020. Nearly 40 million NICS background checks were processed in 2020, a 40% increase from 2019. The gun industry was also able to successfully lobby the Trump administration’s Department of Homeland Security to designate gun manufacturers, distributors, retailers, and ranges as essential businesses, allowing them to stay open. Yet, today’s report reveals that 1,871 firearms-related businesses and organizations received PPP funding from the federal government, totaling $156.9 million. 

Funding for these loans recently ran out, preventing businesses experiencing reduced demand during the pandemic, like restaurants and retailers, to keep their workforce employed. Today’s report details how several businesses actively bragged on social media about their record demand — even as PPP applicants had to certify that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Among other findings, Everytown researchers determined:

  • Polymer80, a ghost gun manufacturer that was raided by the ATF and is facing several lawsuits, including from the LA City Attorney and DC Attorney General, received PPP funding. The company repeatedly mentioned online the high demand it faced while taking a $317,000 loan.
  • Firearms retailer Brownells Inc., owned by former NRA President Pete Brownell, received a $5 million PPP loan, the second largest firearms industry recipient. In November of 2020, Pete Brownell bragged about how “this market is exponentially larger than the Obama market” and how quickly items sell out.
  • Gun manufacturer CZ USA took in over $1.4 million from the PPP in 2020, only to then quickly turn around to acquire Colt Manufacturing for a purchase price of approximately $200 million. 
  • Nosler, Inc., a manufacturer of guns and ammunition, received a PPP loan of $1.3 million. Yet the company appeared to be doing quite well in 2020, as evidenced by social media posts boasting that “the bullet business is booming” and attempting to hire additional employees. Further, the company’s homepage recently discussed current “unprecedented demand” and that products are “being shipped… very consistently.”
  • More than $23 million went to gun industry companies who either reported the loan would save zero jobs or did not report how many jobs it would save. 

The report, which examines funds distributed in the first tranche of PPP funding, raises serious questions for government regulators and those in charge of investigating misuse of taxpayer funds to look into. 

“We already knew the gun industry isn’t especially interested in safeguarding American lives, and now we also have proof that they’re equally uninterested in safeguarding American tax dollars,” said John Feinblatt, President of Everytown for Gun Safety. “The gun industry owes the public answers on why they were tweeting about record sales with one hand, while accepting relief funds with the other.”

“Bending every rule possible is part of the gun industry’s M.O., but seeing them brag about it on social media just shows blatant disregard for the American taxpayer,” said Shannon Watts, founder of Moms Demand Action. “If your business couldn’t keep stock on the shelves, you probably didn’t need government funding to survive. But the gun industry only cares about getting rich, whether it’s making it easy for anyone to buy a gun at any time, or milking aid programs when they are flush with cash.”

“As funding has now dried up for more-deserving small and medium businesses who are still recovering from the pandemic, we’re starting to see the real cost of the firearm industry’s actions,” said Justin Wagner, Director of Investigations at Everytown for Gun Safety. “Today’s report raises serious questions about the certifications these businesses made that the funds were necessary for the continuity of operations, and those entrusted with detecting fraud against the government need to take action and investigate.”