Posted on 04/21/2020 9:32:29 AM PDT by Kaslin
As a small business owner in West Virginia, I have prepared for many different scenarios, but the coronavirus has left me feeling overwhelmed - not only for the future of my business but for my employees as well. This invisible enemy is forcing me to cope with a reality where our seven offices are closed indefinitely. Thankfully, Congress passed and President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, which includes $349 billion in loans to small businesses as part of the Paycheck Protection Program.
Small Business Administration Administrator Jovita Carranza explains, "Our goal is to position lenders as the single-point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level. Speed is the operative word; with lenders using their own systems and processes to make these loans.”
Small businesses, like mine, desperately need this money to weather the coronavirus so we can emerge stronger tomorrow. By offering loans with a simple application form, the Trump administration is allowing us to keep our rent and our almost 60 employees paid during this time of economic disruption.
The seriousness of the coronavirus is forcing me to worry about the future of my business. I have worked hard to build up an emergency fund, but I still wasn't prepared for this deadly disease.
Small businesses create two-thirds of all new jobs in America, but many of these job creators may lay off employees because of this crisis. This situation is especially tragic after President Trump’s tax cuts had generated massive growth for small businesses.
Everyone I talk to expresses doubts and fears about what is happening. Axios found 96% of small business owners "say they have already been impacted by the outbreak." Unemployment numbers reflect this sad reality, as 22 million people have filed for unemployment since the coronavirus outbreak.
Thankfully, the Paycheck Protection Program provides businesses with needed cash and, more importantly, helps us retain our workers. It is impossible to mitigate the impact of the coronavirus fully, but this program will keep many businesses open that otherwise would have folded.
The loans are from the federal government, and approved banks manage the loans. Under the program, businesses can borrow up to 250 percent of their payroll or $10 million, whichever number is less.
Loans granted as part of the program can be forgiven if “the funds are used to keep employees on the payroll and for certain other expenses,” according to Treasury Secretary Steven Mnuchin. Targeted loan forgiveness for payroll expenses is a concrete example of President Trump fighting for American workers.
This program builds on past actions the administration has taken, like extending the April tax deadline to July and helping owners fill gaps in their supply chains, to aid small businesses. President Trump and Secretary Mnuchin know how to run a business, and they continue making decisions that help companies survive.
The Paycheck Protection Program and other initiatives are preparing the economy for a resurgence when the pandemic passes. Alfredo Ortiz, the CEO of Job Creators Network, argues, "There's more work to do to ensure small businesses get the loans they need, but the groundwork is being laid for a massive Main Street recovery when this is over."
America’s economic future depends on keeping small businesses afloat during this disaster. No one predicted this, but thankfully President Trump is taking strong actions to combat the coronavirus and to help businesses survive a period of economic turbulence. Allocating $349 billion in forgivable loans to entrepreneurs proves that the president is dedicated to protecting American workers.
When it’s not being looted by big businesses and banks.
Exactly !!! What a cluster. Shameful.
And hedge funds.
I wonder how many of the banks were sorting which businesses getting the federal loans through them owed the bank the most money, thus choosing based on what helped the bank the most.
I wonder how much much PPP money the lard ass governor of WV raked in for his Greenbrier Resort and coal mines?
I wonder how much much PPP money the lard ass governor of WV raked in for his Greenbrier Resort and coal mines?
Small businesses that are applying are being told the money is all gone. Big business took it all.
Exactly! As usual larger companies and those with connections received the money and stick others waiting for additional assistance. The bureaucracy in Washington and larger banks cannot be trusted.
While the money is gone, banks lent it to the most credit worthy and best small business bank customers.
The recipients were actually small business companies but more credit worthy than those truly small.
“Big” business did not get the money
Government propaganda, gotta love it.
I wonder why they never indicate what their small businesses are, and how they have been shut down. Clearly, if the guy owns diners...it’s loss of dining traffic, but they could run take out.
His picture makes me think he is a doc. My wife and I have been doing Tele-med regularly since this started. The charges haven’t changed. And they are doing this stuff all day.
I hear about business owners, but why doesn’t anyone ever say what they do?
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Shake Shack got a loan. They are publicly traded and had a recent stock market capitalization of $1.6 billion.
According to Forbes, 71 publicly traded companies received Paycheck Protection Funding before the money ran out. USA Today is also reporting that the big banks like JP Morgan Chase shuffled the loans to the biggest borrowers, screwing over even more small business owners whose applications they sent to the bottom of the pile.
To be fair, Shake Shack did have a change of heart and returned the money, and said they would use their normal means of access to needed capital.
Yes, you are correct. They did - thanks.
“Big” business did not get the money
Oh really
Harvard college with 40 billion dollars in endowments in the bank got 9 million plus small businesses like mine are told funds ran out
Meanwhile bills are due and we are no longer building single family homes here in Florida
And instead of approving more Nancy Pelosi is eating 100$ a gallon ice cream and on recess
Police medical staff post offices the trash guy are working but Congress is on recess. I guess their lives are more important
OkOk..... But my point still holds.
The banks took care of their best customers with the best credit ratings.
The small companies with marginal credit ratings will be overlooked by loan committees in favor of companies with good loan repayment experience and favorable outlook. A loan committee will like not loan to a company likely to be out of businesss in say 90 days or 6 months
Gotcha.
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