Mr. Tom Abood, Chief Executive Officer, EVO Transportation & Energy Services, Inc. (May 8, 2020)
Summary
Letter dated May 8, 2020 from the Select Subcommittee on the Coronavirus Crisis to Tom Abood, Chief Executive Officer of EVO Transportation & Energy Services, Inc. It requests that the company immediately return the Paycheck Protection Program (PPP) loan it obtained so that the funds may be used to support truly small businesses. The letter states that on April 30, 2020, the company reported to the Securities and Exchange Commission that it obtained a PPP loan in the amount of $10 million, and that the company is a public entity with a substantial investor base and access to capital markets. It asks for a response by May 11, 2020, on whether the funds will be returned and, if not, production of documents relating to the PPP loan by May 15, 2020.
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- 050820 Select Sbcmte To Evo Transportation Energy Re Ppp 19Abf7B9F6Ac
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- 050820 Select Sbcmte To Evo Transportation Energy Re Ppp 19Abf7B9F6Ac
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“Mr. Tom Abood, Chief Executive Officer, EVO Transportation & Energy Services, Inc. (May 8, 2020).”
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May 8, 2020
Mr. Tom Abood
Chief Executive Officer
EVO Transportation & Energy Services, Inc.
2075 West Pinnacle Peak Road, Suite 130
Phoenix, AZ 85027
Dear Mr. Abood:
The Select Subcommittee on the Coronavirus Crisis requests that EVO Transportation &
Energy Services immediately return the Paycheck Protection Program (PPP) loan it obtained so
that these funds may be used to support truly small businesses that are struggling to survive
during the coronavirus crisis.
When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES)
Act with broad bipartisan support, we intended to provide an invaluable lifeline for small
businesses that otherwise might be forced to lay off employees or shut down entirely. 1 We did
not intend for these funds to be used by large corporations that have a substantial investor base
and access to capital markets. 2
Unfortunately, many large companies were able to utilize this program and obtained PPP
loans that were intended for small businesses. Some of the companies returned these funds amid
widespread public outrage. 3 However, other companies—including yours—still have not
returned these funds.
1
Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136, §§ 1102, 1106 (2020).
2
See Small Business Administration, Paycheck Protection Program Loans Frequently Asked Questions
(May 6, 2020) (online at https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-
Asked-Questions.pdf) (“For example, it is unlikely that a public company with substantial market value and access
to capital markets will be able to make the required certification in good faith, and such a company should be
prepared to demonstrate to SBA, upon request, the basis for its certification.”).
3
Ruth’s Chris to Repay Loan Amid Outcry Over Rescue Program, Wall Street Journal (Apr. 23, 2020)
(online at www.wsj.com/articles/public-companies-have-to-repay-small-business-rescue-loans-11587670442)
(“Returned funds will be recycled to make loans to additional businesses that qualify for aid under the program, a
Treasury spokesman said.”); The NBA’s Lakers, Worth $4 Billion, Received a $4.6 Million Small Business Loan
from the Stimulus Program, Associated Press (Apr. 28, 2020) (online at www.marketwatch.com/story/the-nbas-
lakers-worth-over-4-billion-received-46-million-small-business-loan-from-stimulus-program-2020-04-28).
Mr. Tom Abood
Page 2
This is an issue of significant bipartisan concern. As House Republican Leader Kevin
McCarthy recently stated during a nationally televised interview:
I was on the phone with the President and the Secretary Mnuchin yesterday, making sure
that that’s not gonna happen, that we will go after those big companies that cheat the
system. 4
Similarly, Treasury Secretary Stephen Mnuchin called these actions “outrageous” and
added that he never would have expected such abuses “in a million years.” 5
On April 30, 2020, your company reported to the Securities and Exchange Commission
that you obtained a PPP loan in the amount of $10 million. 6 According to your website, your
company is “one of the largest and fastest growing transportation providers to the United States
Postal Service.” 7 Your company has stated that it “has 1,400 employees and operates a fleet of
over 1,100 trucks and tractors.” 8
Since your company is a public entity with a substantial investor base and access to
capital markets, we ask that you return these funds immediately. Returning these funds will
allow truly small businesses—which do not have access to alternative sources of capital—to
obtain the emergency loans they need to avoid layoffs, stay in business, and weather the
economic disruption caused by the coronavirus crisis.
We request that you inform us by May 11, 2020, of whether you will return these funds,
including the specific amount being returned and the date by which the funds have been or will
be returned.
If you choose not to return some or all of these funds, we request that you produce by
May 15, 2020, all documents and communications (1) between your company and the Small
Business Administration and the Department of the Treasury relating to the PPP loan; and (2)
between your company and any financial institution relating to the PPP loan, including all
applications for a PPP loan.
4
America’s Newsroom, Fox News (Apr. 21, 2020) (online at
http://video.foxnews.com/v/6151086586001/).
5
Treasury Secretary Mnuchin Says It Was ‘Outrageous’ for the LA Lakers to Take a Small Business Loan,
CNBC (Apr. 28, 2020) (online at www.cnbc.com/2020/04/28/mnuchin-says-it-was-outrageous-for-the-lakers-other-
such-businesses-to-take-small-business-loans.html).
6
EVO Transportation & Energy Services, Inc., Form 8-K (Apr. 30, 2020) (online at
www.sec.gov/Archives/edgar/data/728447/000121390020010600/ea121198-8k_evotransport.htm).
7
EVO Transportation & Energy Services, Inc., Home Page (online at https://evotransinc.com/) (accessed
May 8, 2020).
8
EVO Transportation & Energy Services, Inc., EVO Transportation & Energy Services Appoints Thomas
J. Abood as Chief Executive Officer (Sept. 23, 2019) (online at https://evotransinc.com/wp-
content/uploads/2019/09/PR-EVOA-New-CEO-Tom-Abood-final-Gateway-Edits.pdf).
Mr. Tom Abood
Page 3
Modeled after the Truman Committee during World War II, the Select Subcommittee on
the Coronavirus Crisis was established by the U.S. House of Representatives on April 23, 2020,
pursuant to House Resolution 935, “to conduct a full and complete investigation” of the
“efficiency, effectiveness, equity, and transparency of the use of taxpayer funds and relief
programs to address the coronavirus crisis,” the nation’s “preparedness for and response to the
coronavirus crisis,” and “any other issues related to the coronavirus crisis.”
If you have any questions about this request, please contact our staff at (202) 225-4400.
Sincerely,
______________________ ________________________
Rep. James E. Clyburn Rep. Maxine Waters
Chairman
______________________ ________________________
Rep. Carolyn B. Maloney Rep. Nydia M. Velázquez
______________________ ________________________
Rep. Bill Foster Rep. Jamie Raskin
______________________
Rep. Andy Kim
cc: The Honorable Steve Scalise, Ranking Member
Select Subcommittee on the Coronavirus Crisis
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