To: Sun Tzu who wrote (9245 ) 4/19/2020 11:47:05 AM From: Kirk © 2 RecommendationsRecommended By
Read Replies (2) | Respond to This appears to be a major failure of the PPP and I'm pretty sure the news reporters still haven't figured out it is the low cost of FAILING to keep workers employed is why so many large companies take the money and still lay off workers.buzzfeednews.com Under the Paycheck Protection Program (PPP), the government will forgive the loans if the money is used on payroll, rent, or utilities — and workers aren't laid off. All loans were from JP Morgan bank but will be backed by the US government as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The act provided up to $350 billion in loans to businesses with 500 employees or less for payroll purposes. But the law provided some flexibility to restaurant and hotel groups by stating they could apply as long as they had no more than 500 workers at a single location. Under the Paycheck Protection Program (PPP), the government will forgive the loans if the money is used on payroll, rent, or utilities — and workers aren't laid off. ... A Ruth's spokesperson told BuzzFeed News the company took the loans to provide additional liquidity. "As a franchised organization, it is our responsibility to our nearly 30 small business owners, team members, customers and shareholders, to do everything we can to ensure Ruth’s Hospitality Group is well positioned to emerge from this situation a strong and viable entity," the spokesperson said. ... "They have lines of credit and other available loans and they can work with their bank," she said. I added this comment: Kirk Lindstrom I have two close friends with women owned small businesses who tried to get these loans to pay their tiny staffs... and they were pushed aside by the big, corporate restaurants and VC backed companies that have bigger business dealings with the banks so of course they got first dibs at the money. Getting a huge sum at 1.0% interest that you could split between banks paying 1.6% to 2.0% in CDs for liquidity would mean some of these bigger companies can make money, lay off workers and crowd out the small businesses this money was intended for.I wish the news and politicians would figure this out and end the loophole. Charge a 10% fee plus 5% a year interest rate if anyone with over 30 employees takes these PPP loans to raise capital and doesn't keep EVERY worker.
