If the federal PPP loan requires them to pay the salaries of their total former staff, then it’s a poison pill.
Everybody is mad at Ruth’s Chris and Shake Shack over accepting PPP money, but Boeing’s 12 billion dollar bailout quietly passed by without media comment.
I have said that from the time it was signed into law. The SBA EIDL is the same poison pill. If you cannot make it on limited capacity...you aren’t going to make under the new normal. AND that darn loan isn’t forgivable if you file bankruptcy. That part is in the fine print and has been there since the beginning. While no collateral was required, it is your word, your oath to repay. If you fail you lose and like a student loan it isn’t forgiven. You still have to pay it all back. Business income or not. When you accept the loan you are signing your life away.