Oberweis Dairy Lands $5.6M Federal Coronavirus Loan

NORTH AURORA, IL — Oberweis Dairy received a loan worth more than $5 million in April from the federal government’s Paycheck Protection Program to support its operations and employees amid the pandemic, according to U.S. Treasury data released this week.

The company is chaired by millionaire state senator and U.S. House candidate Jim Oberweis — who has poured millions into campaigns over the past dozen years — but he said in a statement the company needed the PPP loan “to save the jobs and paychecks of its employees during this unprecedented time.” The company employs about 500 people at more than three dozen locations, according to its application for the loan.

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“Without the PPP, at a minimum it would have been prudent to close all restaurants and some ice cream stores that we operate for some period of time,” which would have led to furloughs or job cuts, the statement said.

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Oberweis is challenging U.S. Rep. Lauren Underwood (D-Naperville) for her seat in the U.S. House of Representatives in November’s election.

A spokesman for Oberweis Dairy told the Chicago Sun-Times that Oberweis does not take a salary from the company while serving as chairman, despite his campaign disclosures stating he has a financial interest in the company. Oberweis’ wife, Julie, receives a salary from the company, the Sun-Times reports.

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The spokesman said Oberweis’ son, Joe, runs the company while the state lawmaker serves in an “advisory” role, the report states.

Oberweis Dairy was one of 255 businesses in Illinois to receive a loan between $5 million and $10 million, the largest available under the Paycheck Protection Program. More than 202,000 businesses in the state have received PPP loans, the data shows.

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If PPP loans are used as intended — to cover payroll costs, health care benefits, rent/mortgage payments, utilities or interest — the federal government will forgive the loans. If the funds are misused, however, the Small Business Administration will force businesses to repay the portion of funds they misused. No company can receive more than one PPP loan.