How many jobs did they originally have?
Of course not. I’m saying insiders got PPP money. And it stunk so bad that the govt felt the need to cover it up.
In fairness, the loan process was not controlled by the government IIRC. I believe the individual banks writing the loans had description over approval.
My company took a PPP loan. We applied to our local bank. They were absolutely flooded with applications, to the point that they would ONLY work with borrowers who did business with them. They still got tens of thousands of apps.
The government handled it through testing banks because they simply didn’t have the infrastructure to write so many loans directly.
My understanding is that the bank had descritenion over approval. Again, they lacked the infrastructure to review and approve - at least that was my understanding of the logic.
Some banks in our area refused to participate in the program because they feared the government would audit the process later and hold the banks responsible for writing bad loans or approving fraudulent applications.
It seems very unlikely that this business owners received special treatment, and those loan amounts are pretty insignificant relative to teh program in general.
Where I find fault is two fold -
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This illustrates why Trump et al. should have put all their holdings in a blind trust when they took positions of power. It’s incredibly swampy to watch them create and manage programs that directly benefit them at the expense of the tax payer.
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It would have been a heck of a lot easier if the government just increased UE benefits and write all businesses checks to get through the rent. The program’s intent is good, and ultimately kind of met, but the process is incredibly convoluted and unnecessarily complicated.
I can just hear in my head the conversations they had to try to make the program meet the mission without fraud, but it just gets so crazy…IMO they could have met the mission in a more streamlined way.
But again, we benefited, will qualify for forgiveness, saved 11 jobs, so I’m thankful for it.
Nicely said
Most people who got the loans needed them and made good use of them, I’m sure.
I’m actually not sure that is true.
And this is another complaint with the program. There is NOTHING in the programs design that indicates the only small businesses who can apply had to be hurting and on the verge of collapse.
In fact, the forgiveness formula rewards you for being perfectly healthy and running fine.
The forgiveness formula indicates that if you maintain the same workforce through the entire ‘covered period’ (and for crazy reasons, the program was amended so every borrower could choose between 2 covered periods) as compared to a date in the past (and again, they give you a choice of two dates…) then, you qualify for 100% loan forgiveness.
IOW, if keep everyone employed, it’s not a loan.
This, on it’s face, seems to be a way to get struggling companies to just keep everyone on payroll regardless of them actually having work. That in fact was one of the missions of the program - keep people off UE.
But obviously you can see it also has the effect of allowing perfectly healthy companies to get full forgiveness.
It would have been easier to just boost UE and send companies money.
But that would have made UE even worse, which would have political consequences.
Government is complicated, and a bunch of talk show hosts and business TV personalities tried to make a program that sounded good to their audience. But it was way more complex a task then they realized.
I should clarify - I don’t think people used the funds for other than payroll and the allowable business expenses. It’s just that the program didn’t have a filter so that healthy, operating companies couldn’t participate.
hindsight is 20/20. the new version limits loans to companies that show a 25% drop in revenue.
as an aside i find it interesting that the premise of this thread is that if i rent a store front on a strip mall and take out a 100k ppp loan to keep my 3 employees on payroll the real beneficiary is the evil bastard i rent the space from.
No, the premise is that the owner of the property, who had influence over who received the loans, benefited from the PPP loan given to the tenant.
what influence did trump have? did he approve bank loans? the premise is ridiculous.
Where did you see that? I read today that they were considering another PPP but couldn’t find any details.
was on the news this morning. evidently part of the 900B bi partisan package
Well, the issue is, the program caps employee wages at 100K a year, so you could only use…I forget, I think it’s like 16K per employee. The program was based on this odd notion that small businesses needed 8 weeks of support…oy…if only, right?
Any way, so if my 16K figure is correct, that 100K loan is mostly being used for rent and business expenses - there also is a cap on that…you can’t use it all on those categories. A majority has to be for payroll.
So, if they only used it for 3 jobs a significant portion of that loan was available for use on rent and utilities.
At least that’s what I took the point here to be.
Again, that is a nice sentiment, but boy, that’s gonna be hard to implement. 25% decline since when? And what proof do you have to offer? And to whom? Would be pretty easy to hold off booking sales until 2021 to make the cut.
The people we are trying to help are:
1- People who lost their jobs because of the pandemic.
2- Business owners who can’t pay the rent, utilities and themselves due to the pandemic.
For #1, we have a system in place - Unemployment benefits. Increase them.
For #2, If someone closes due tot he pandemic, send them a check so they can pay the rent and themselves.
Would be a lot simpler than the PPP.
No, but he sign into law a program that directly enriched him.
That’s unseemly.
Imagine if Obama had done that. You’d be freaking out.
Back to work for me…
Stay safe everyone!
Hmmm maybe the media should request ALL companies that got money, and see how many jobs each one retained. THAT would be the best way to do it, then you could compare these few to the majority. You know like what was it . . . Kennedy Center that specifically got a lot of money, then started laying people off.
When you give away billions quickly, there is going to be a lot to complain about. Naturally, people will try to work these into a political agenda of complaints.
But then if they don’t give away billions quickly the same media will be complaining that their politicians they don’t like don’t care about those suffering from the effects of COVID-19.
did you miss that the 100k and 200k here is to 6 different tenants? 2 in one building got loans. based on three employees total i assume it was likely 65k for one and 35k for the other. in the other building covering 6 employees there were 4 different tenants. i’ll guess 2 had 2 employees and the other 2 had 1 each. so 2 65k loans and 2 35k.
thats a problem?