Friday, April 24, 2020

Less Than 5% Eligible Businesses Received SBA Rescue Loans


The stimulus money ran out after the first week. Not to mention some approved "small business" loan applicants were dubious contenders at best, owned or operated by larger holdings, their total employee numbers above the "small business" benchmark.
Is that a fault to be laid at the feet of the rich, or, has Congress, post haste, routinely approved passage as with any of its legislation's final draft? The drama ensuing makes it difficult to discern the main protagonist. The solution of lifting restrictions is still debated while time may be running out.
As for the banks mentioned, they won't touch anything but Preferred Payment Protection loans again, with their less stringent standards, for a virtual guarantee by the US Treasury.
It's ironic that staff of some of those awarded company's are angry. It may be more profitable now to be unemployed.
Will their jobs be there when the lock down is lifted?  Small business comprises near half of the employment rolls in the United States. Will the pressure of small business' liabilities curtail income and operations first? An estimated 40 million in the labor force have no guarantees of job security currently.
Lock downs of various duration have already weakened markets causing business bankruptcies to soar.

Small Business Rescue Earned Banks $10 Billion In Fees

 

 

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