Posted on 11/19/2020 7:39:06 AM PST by SeekAndFind
Recipients of PPP loans have filed for bankruptcy after the money ran out.
Hundreds of companies employing 23,400 people went Bankrupt after PPP Funds Ran Out.
The total number of companies that failed despite getting PPP loans is likely far higher. The Journal only analyzed the big borrowers from the program, which accounted for about half of the overall loans though only about 13.5% of the total participants. And many small businesses simply liquidate when they run out of cash rather than file for bankruptcy.
The SBA has only released data on the largest borrowers, which the Journal linked to bankruptcy filings.
About $525 billion in loans were distributed to over 5 million companies between April 3 and Aug. 8.
At least 285 medium-sized companies went under. Undoubtedly thousands of smaller companies did as well.
I never understood giving money to corporations so they could pay workers.
The workers were covered by state unemployment insurance, plus pandemic assistance.
Many people made more money being unemployed than than they did working thanks to $600 in weekly pandemic assistance checks.
Moreover, the program was fertile grounds for fraud. Many companies opened businesses to take advantage of the guarantees.
Please consider Evidence of PPP Fraud Mounts, Officials Say
The Small Business Administration’s inspector general, an arm of the agency that administers the PPP, said last month there were “strong indicators of widespread potential abuse and fraud in the PPP.”
The watchdog counted tens of thousands of companies that received PPP loans for which they appear to have been ineligible, such as corporations created after the pandemic began, businesses that exceeded workforce size limits (generally 500 employees or fewer) or those listed in a federal “Do Not Pay” database because they already owe money to taxpayers.
Several hundred PPP-related investigations have been opened, involving nearly 500 suspects and hundreds of millions of dollars of loans, according to the Federal Bureau of Investigation.
Some Democratic lawmakers and others have voiced concerns that the SBA’s refusal to release the names of all borrowers would make detecting fraud more difficult.
That issue might have been resolved last week, however, when a federal judge sided with news organizations including Dow Jones & Co., publisher of The Wall Street Journal, that argued the SBA was legally required to disclose the borrowers.
Also note 83% of Passengers Will Not Return to Old Travel Habits
States are increasing lockdowns again except this time there is no program in place to deal with the mess.
Bankruptcy counts will soar. What a disaster.
No problem.. I’ll cover all of them and just write a check like the USG does.
Will be bought up for pennies on the dollar by $ O R O $ and his allies...................
The commies hate small business owners and the middle class.
Sorry you will have to go through Google, but this is a UN roadmap for the Globalization of everything after a pandemic. Note it is from 2017. And the slogan they use is the slogan that Biden appropriated for his ‘campaign’.
“No news here folks. Keep moving along ...”
Is this going to be like the inevitable housing crisis?
My small business is still shut down since we depend on venues having concerts etc. We didn’t qualify for PPP but got $2000 thru the other program since the biz is me and my daughter and they based it on # of employees. Yeah, that really helped a lot. lol
Color me surprised... not.
It is what the communists, also called liberals or democrats, want. This way services will be provided by government.
I think this was always the plan with the loans, just gathering up real assets with debt instruments and gov’t shutdowns. They meant it when they said you’ll own nothing by 2030.
At least all those newly unemployed will be able to spend more time with their families instead of slaving all day for some rich business owner that has exploited them for his own personal gain
/s
A lot of companies out there are like a couple in a very bad marriage. That is, they are headed for divorce (bankruptcy), even if the lockdowns end.
A LOT.
My small business is still shut down
*************
Just curious and you don’t have to explain if you don’t want to,
I’m assuming you are doing something like vending food/drinks
or some other need while the attendees are in line waiting to
get in.
Sounds interesting but you don’t have to respond. Some of us
old folks probably could do something like you do just to keep
occupied once in a while. Take care and hope things improve.
I work for a community bank. One of our large customers has a production company. We have structured him to hang on and he is making interest payments largely through production work at large churches. He needs concerts and large gatherings to resume. I am hoping that will happen fairly soon. He is very good at what he does. The politicization of COVID needs to be rammed back down the throats of the Commie Rat party.
My wife and I survived COVID with mild symptoms by jumping on it early with an array of vitamins (including D and Zinc), pepcid, melatonin and diet tonic water (quinine as a sub for hydroxycloroquine). My theory is that all those kept the virus level in our bodies hammered down to low levels, limiting the symptom manifestation. Not making light because I have had 3 acquaintances that died from it. Masks and shut downs probably do a lot more harm than good.
We run online campaigns for funding for charities. Donate and receive a chance to win....flight, hotel stay, and floor tickets to Aerosmith. Just an example. We also give away flights, hotel stay and tickets to your choice of basketball, football, etc. games across the states. Since all that stuff is shut down our business is kaput until they come back. We have access to vacations, etc but people are too scared to take them. I haven’t seen any light at the end of the tunnel for us yet. It just keeps on being the train.
Since all our biz is done online I am just paying to keep everything open until we can actually open again. Cost of website, hosting, state fees, etc.
What deficit? What Debt? Time to buy more Gold.
Time to get out of the market?
Thanks. Yes it still seems like it is going to be sometime
before things begin to turn back toward what we consider
normal. I thought we had maybe reached that point but it
seems like sick cases are on the uptick again. Thanks and
take care and good luck with the future.
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