Rocky Mount-based foundation unsure how $83M in COVID loans were spent

ROCKY MOUNT, N.C. — Tuesday’s announcement comes after a report from the State Auditor said the Golden LEAF Foundation didn’t track how businesses spent the millions in taxpayer dollars it distributed.

A spokesperson for Golden LEAF said the organization isn’t responsible for checking how businesses used the millions in pandemic relief money it gave out. But now, the foundation claims it doesn’t even know who got the loans.

In May 2020, North Carolina set up a COVID-19 relief fund for businesses impacted by the pandemic using $3.6 billion in federal money. The state also established the NC Pandemic Recovery Office to find organizations to help by giving out the money to those in need.

One of those organizations was the Golden LEAF Foundation in Rocky Mount, which received $83 million to distribute as loans to small businesses.

In a report issued last week, the State Auditor’s office said Golden LEAF didn’t require businesses who got loans to show how they were spending the money, or independently verify how the loans were being used.

"There was a waiting list,” Wood said. “So if you’re not ensuring that the businesses that received the money were spending it for the right things, there’s no way to stop the money or recall it and then give to businesses that are on the waiting list.”

In a response to the audit, Golden LEAF said the law only required the foundation to get a personal attestation from each businesses, which was essentially a promise the business would use the money for its intended purpose. Golden Leaf also claimed it didn’t require spending reports because that’s not a normal practice for small business lending.

"That is not true, and I think their response is weak and inadequate," Wood said. "These monies that are going out to help these small businesses are . . . (Read more)