Thursday, April 9, 2020

'It doesn't make any sense:' Restaurant owners push back against SBA loan restrictions


This is true for any "LOAN!" that the government is arranging in response to this shutdown...it won't work... why borrow munnie to pay people WHEN YOU HAVE NO CUSTOMERS????  It's cheaper to just send them to unemployment...

“That money will quickly come and go, and then you’ll kind of be back to where you are, if you don’t plan it out properly,” Rubin said. “If you just take that money and just pay people to be on payroll but there's no demand for them to work, there's no other money coming into the rest of the business to build up cash to then fund the next step of the business.” 
The Paycheck Protection Program (PPP) allows small businesses to apply for loans up to 2.5 times their average monthly payroll. The funds are fully forgiven, so long as they are used for payroll costs, interest on mortgages, rent, and utilities. While payments can be deferred for six months, forgiveness is based on the employer maintaining or quickly rehiring its employees. The amount of forgiveness drops for companies that don’t follow all the requirements. 
“The challenge with the loan and the potential loan forgiveness is the 8-week window of time for spend, which may not work as intended for every business,” Rubin said. “Some restaurants will not see revenue above single digits of their pre-COVID steady state for some time. This will make it near impossible to rehire 100% of [full-time employees] which is the majority of the basis for the loan and loan forgiveness.”



The whole Small Business response is FUBAR...


Looks like Trump is sending in the A-Team to fix it:




If she fixes this thing... the whole Treasury Department, Small Business Administration, the Fed people and Congress should have to all resign immediately... 




13 comments:

Peter Pan said...

And if she doesn't, we'll never hear the end of it. Ivanka has a BSc.

Matt Franko said...

Hey this is interesting from her wiki:

"After graduating from Choate in 2000,[20] she attended Georgetown University for two years before transferring to the Wharton School at the University of Pennsylvania, from which she graduated cum laude with a bachelor's degree in economics in 2004.[21][22] Her father had also transferred to Wharton after two years at another institution, Fordham University.[23]"

She has a BSc in Economics from Penn same as her father and MIKE....

Penn does it via Science methodology...

Matt Franko said...

Pretty bad if Ivanka can make you look stupid... I think you gotta pack it in and retire if that happens... but they wont...

Lets see what happens... she is up against A LOT of entrenched Art Degree moron bureaucrats....

I'm not optimistic...

Peter Pan said...

A real world test of your hypothesis... gonna go get me some marshmallows :)

lastgreek said...

Matt,

Both Alex Azar and Peter Navarro, two men who currently serve in the Trump administration, tried to warn Trump of the risks of a coming pandemic. Both were ignored. Btw… both have arts degrees. Go figure…

Why is the charity fraudster Ivanka Trump not in prison where she belongs.

Matt Franko said...

Navarro memo Jan 29 and Trump shut border with China Jan 30th...

seems reasonable...

Matt Franko said...

New W/H memo rumored on right that has all travel between US and China shut for 1 year ....

Greg said...

Shutting travel to China for a year? I’ll believe it when I see it, there are going to be yuuuuuuge loopholes, but what the fuck is this going to accomplish? Is this to punish China for.........corona virus response.....??

Matt Franko said...

huge animus building on the right against China...

Matt Franko said...

Here is Flimsy Graham even:

https://twitter.com/LindseyGrahamSC/status/1248026656037617665?s=20


We can just hit their Official Reserve account for the $1T or so that they have there... zero it out....

Then the morons wont be able to say "we're borrowing from China!" anymore...

S400 said...

“huge animus building on the right against China... “

Yep that’s their reptile brain working full time

Matt Franko said...

“Reptile brain”

Figurative language.... ever have anything else?

Peter Pan said...

reptile brain ~ limbic system