Posted on 04/22/2020 7:06:29 PM PDT by BurgessKoch
Jamie Black-Lewis felt like she won the lottery after getting two forgivable loans through the Paycheck Protection Program.
Black-Lewis saw the $177,000 and $43,800 loans, one for each of the spas she owns in Washington state, as a lifeline she could use for payroll and other business expenses.
She’d halted pay for the 35 employees — including herself — at Oasis Medspa & Salon, in Woodinville, and Amai Day Spa, in Bothell, in mid-March, when nonessential businesses in Washington closed due to the coronavirus pandemic.
When Black-Lewis convened a virtual employee meeting to explain her good fortune, she expected jubilation and relief that paychecks would resume in full even though the staff — primarily hourly employees — couldn’t work.
She got a different reaction.
“It was a firestorm of hatred about the situation,” Black-Lewis said.
The animosity is an unintended consequence of the $2.2 trillion coronavirus relief package enacted last month.
The law, the CARES Act, offered $349 billion in loans for small businesses struggling as a result of Covid-19. Banks, backstopped by the federal government, can fully forgive the loans under certain conditions.
Among them, the bulk of funds must go toward payroll, salaries must remain intact and employee head count must not decrease. Businesses have until June 30 to rehire laid-off or furloughed workers.
Black-Lewis was trying to meet these rules, especially after her bank reiterated she must continue to pay workers for loan forgiveness.
The anger came from employees who’d determined they’d make more money by collecting unemployment benefits than their normal paychecks.
(Excerpt) Read more at cnbc.com ...
Remember, the feds are kicking in and additional $600 in addition to state unemployment. So if you get 400 from state plus 600 from the feds you’re getting a grand a week. Thats probably significantly more than a spa worker gets paid a week.
I think you need to read the story a little better. They were already laid off prior to her requesting and receiving said loans; which would pay her (laid off ) employees their normal rate of pay. Said employees(on layoff) are earning more (on layoff) because of the extra $600/wk on top of the states normal use rates.
The benefits are only good through July what the hell are these assholes going to do after that???
—
Those nitwits didn’t think that far ahead. They’re like children, living in the moment with no consideration for the long term.
“Sometimes I think this country deserves what is coming to it.”
We do.
“I’m just sorry my kids have to live with it.”
Us too.
L
sorry to hear that. 2009 wasn’t good for me too. I didn’t build that.
Same here. We are blessed we have really great employees (majority) and the compromise is come back in 2-3 weeks fresh and let’s go. Obviously, we ALWAYS have that ad for Linked In and Craigslist ready when we need fresh blood.
The nation wide lay-offs started then.
Every few weeks, Hussien would announce changes to Obama Care and a new round of nation wide lay-offs would happen the next day.
Every time Hussien came on TV to annouces changes, my phones would not ring for a week.
Internet sales would go to almost zero (we also shipped parts).
Client shops would call me saying they were done and closing.
When people were scared of loosing their jobs, they parked their cars.
I lasted until the end of April '09.
Many auto shops failed in '09.
In the Summer of '09, if you went to a auto shop it was rare to see more than one auto tech working. Sometimes it was just the owner/manager working on vehicles per his ability.
*How soon people forgot the damage of Hussein O.
Democrats were proposing bumping it to $2,000 a month/4,000 a month for couples "until the economy improves."
[You can quit and collect if you quit due to COVID concerns.]
Now ask an immigrant or even an illegal worker which they would chose. I have experience with this. Now let the FR chorus begin about paying higher wages. There is even on poster who claims all a business has to do is redeploy assets into a better business and charge more.
Then there is the real world that some products and services won’t sell at higher prices and do not support higher wages. And in the real world there are many native born workers who act just like this.
Many born here workers will take the money over the job then come August when the money runs out they will cry about the cruel capitalists. Most of the not born here workers would place a higher value on the job.
That’s a good way to:
1) have to pay the money back, and
2) go to prison for defrauding a federal loan program
The rules on these PPP Loans are loose, but very specific.
The money must be used for business payroll, rent/mortgage payments and utility bills only.
To do what you suggest, would not only require loan repayment, but certainly lead to a criminal investigation. The SBA will certainly be auditing/policing these loans usage after the fact.
The purpose of the loan is to employ people. It doesn’t matter who you employ.
Well I think what makes the rate you get for unemployment so attractive now is the extra $600.00 you get on top of it which is not the norm. Usually unemployment pays less than your salary which does not make it as attractive.
So I don’t think you can say this business is not paying employees enough.
Let those go who wish to go. Hire new heads even though there’ll be no work for awhile, so the head count stays the same. Their good fortune and your loyalty account. No one who bailed comes back.
well why in God’s name did they add FIVE HUNDRED dollars to unemployment checks per week that will average 300???
It made no sense.
So much of that bill made no sense.
But it cost a lot of dollars.
Your post # 17 has things which would not qualify, hench, that portion would not be forgiven.
Sorry - that’s bad advice; and if anyone follows it, they are asking for trouble. Your post was irresponsible, and I had to respond so that hopefully anyone reading it wouldn’t do something foolish.
Buy computers/marketing programs/consultants?
These loans are specifically meant to preserve the February 15th headcount; the number of which is included on the loan application.
Well,you didn’t ask that,did ya.
Your children and grandchildren will despise this generation . They will pay for this irresponsible spending .
Ditto. I don’t know how we turn this nutty culture around. Prayer and penance.
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