Conservative group to argue that Media Matters should have been ineligible for PPP loan
EXCLUSIVE — A conservative group will file a complaint with the Small Business Administration Tuesday alleging that liberal nonprofit organization Media Matters for America was ineligible to receive a federal Paycheck Protection Program loan because the group functions as a political organization.
“Media Matters is a political organization, as everyone who has ever followed them knows,” Patriots Foundation president Craig Robinson told Fox News in a statement Monday.
“Other political organizations, like campaigns and state parties, returned their PPP loans,” Robinson added. “We are asking the SBA IG to investigate this matter to ensure that taxpayer dollars were not improperly sent to an organization primarily engaged in political activities when SBA rules specifically prohibit it.”
A source close to the situation told Fox News that the Patriots Foundation also plans to argue that Media Matters made too much money in 2018 to qualify for a PPE loan.
In a letter to U.S. Small Business Administration Inspector General Hannibal “Mike” Ware, the foundation described Media Matters as “an organization that was established by a notorious Democratic political activist, David Brock, and claims nonprofit status as a charitable organization” under Section 501(c)(3) of the Internal Revenue Code.
“There are serious questions, however, whether MMFA’s activities are consistent with its tax-exempt status due to its extensive political activities supporting Democratic candidates and causes,” the letter continued. “Specifically, MMFA has a long history of engaging in partisan political activities designed to benefit the Democratic party and its candidates for public office.”
Last month, CNBC reported that Media Matters and pro-Biden super PAC American Bridge — also founded by Brock — co-presented a series of virtual pre-show events during the Democratic National Convention.
“We hereby request that your office begin an immediate investigation of MMFA’s application for and receipt of PPP taxpayer funds and, if you agree that they are a political organization that should not have received the funds in the first place, take all appropriate legal measures to protect the taxpayers,” the Patriots Foundation letter to Ware concludes.
Media Matters did not immediately respond to a request for comment.
Tuesday’s complaint is not the first time that the Patriots Foundation has gone after Media Matters for America.
Last month, the foundation accused the Federal Election Commission (FEC) of not acting on a complaint alleging illegal conduct by Media Matters and three other organizations founded by Brock.
In April, the same group filed a complaint accusing Brock’s groups, including Media Matters, of wrongly coordinating with Hillary Clinton’s 2016 presidential campaign.
Fox News’ Joseph A. Wulfsohn contributed to this report.