Companies That Are Not Small Businesses Are Getting Millions Of Dollars In Small Business Loans

[Yo_Mama_Been_Loggin]

A federal crisis fund of $350 billion established to keep small businesses afloat during the coronavirus pandemic ran out this week, leaving thousands of companies waiting desperately for help.

But several giant companies with hundreds of stores, thousands of employees, and whose executives make millions announced they'd received the maximum possible payouts under the small business program.

"Unfortunately, they were in line as soon as the window opened for this program and took a lot of resources away from those small business owners where this was their only option," Holly Wade, director of research with the National Federation of Independent Business (NFIB) lobby group, told BuzzFeed News.

Sandwich maker Potbelly and Ruth's Chris Steak House successfully obtained loans worth $10 million and $20 million, respectively, according to filings this week with the Securities and Exchange Commission. The Taco Cabana chain, which has at least 164 stores across the country owned by a parent company, also received a $10 million loan.

https://www.buzzfeednews.com/article/davidmack/coronavirus-small-business-loans-big-companies-potbelly?bftwnews&utm_term=4ldqpgc#4ldqpgc

[liberalmuse]

1. There will only be outrage and injustice as long as Trump and McConnell are allowed to hold office.

We all need to vote enmasse and make sure they are removed from office and then push for investigations.

[jaxexpat]

2. I have heard that Trump's boys gave big banks some sort of control over the disbursement

of these funds. I think the administration's logic was that big banks have accounts with more businesses. Therefore quicker disbursement since account info was already in their system. But the thing is that if the businesses had a loan, the institution holding that paper would get first dibs on the funds. One can see how the fund ran out so quickly, especially if the interest and carrying charges were tacked on at the moment of transfer. One can also see how little interest these banks would have in trying to keep 'Bob and Betty's Custom Pastries'' payroll afloat. Sorry people, I could have misunderstood. But it fits so well. It's just complicated enough that the MSM couldn't unpack it in a sound bite. So who will be the wiser? No one, until the money's already gone.
Just saying...….

[nykym]

3. The real Problem lies with

howthe government classifies a small business.

[Igel]

4. That was discussed and decided.

Of that money, 10% max can go to the business. If you're a business with a $1000 rental agreement you'd need an employee payroll of $11,000 a month to meet just that amount. $1000 seems small. And doesn't include expenses like insurance, taxes, utilities. A lifeline it isn't.

The rest of it goes to payroll salaries.

If a Potbelly's closes and Hank's Sub Shop right down the road closes, both have the same number of employees and similar expenses. If the money to pay the Potbelly's handles 8 employees is the same (as it would have to be, since it's based on payroll) as the money needed to pay Hank's, it's a wash. Eight employees versus 8 employees. While I might sympathize more with Hank as a small business, it's primarily meant to keep the employees on the payroll and store fronts open.

Notice it didn't go to a company with 800 employees all in one location.

Increase the amount to be loaned by $250 billion and perhaps the tussle and moral-ish arguments over the too-limited resources will go away.

[FoxNewsSucks]

6. When I looked into it,

there was no specification on what the loan could be used for. To qualify for having the loan forgiven, however, at least 75% had to be used for payroll. Lease/mortgage payments, interest, utilities, insurance were acceptable expenses.

These large corporations aren't necessarily looking to have the loans forgiven, they just used the money to pay off high-rate lines of credit or other loans. They got a 1% government loan.

Actual small businesses would have used the money as it was intended, payroll and necessary expense.

[keithbvadu2]

5. Ruth's Chris got twice the money by considering two subsidiaries as separate companies.

Ruth's Chris got twice the money by considering two subsidiaries as separate companies.

https://www.democraticunderground.com/100213299093