Honestly these people are insane. I am for helping people in this time of need but if they do not address the small business community giving out free money to individuals would simply create a perpetual dependent class. What people need are jobs. But there are going to be millions of small businesses that will close because they have very little income and lots of bills to pay.
A top down indirect subsidy is the best way out. Do a 90-120 “rent and mortgage forgiveness plan” which would cover the losses of the lenders holding the mortgages, who then forgive the mortgagee, who then forgives the renter. It is faster and accomplishes the result we need. People who own property outright can also apply for lost income.
It would be a much smaller universe of applicants who actually need a bailout, as the banks and large REITs and landlords can run fairly quick reports showing their losses for this period. So they can get covered quickly. Expecting all these business to apply for SBA loans, with all the strings attached, is simply not going to work. It will take way too long. It is too much risk to take on debt, with too much uncertainty about the economic recovery, and why would they hire back 90% of their employees when there is little to no work to be done and they have to cover their overhead expenses out of pocket.
Not to mention, how the heck are the banks and the SBA going to process all this paperwork and deliver the money? It will take years, and the banks are operating on a social distance policy making it difficult to even conduct routine business banking.
Trump knows this. Landlords will be in the pinch. If business don’t pay rent, they could evict them... but good luck finding a new tenant. Congress and the POTUS are way off the mark with these complex plans. They need a simple plan that keeps businesses open so we can get back to business when we’re on the other side of this.
I have a couple of customers that are banks.
I sell coffee
They all asked for deliveries to end until further notice
Damn my short attention span. The first two paragraphs were great so I copied it and pasted into word to read later.
And at 51 I’m not taking any ADD medicine :-)
Great post so far