On Wed, 8 Apr 2020 07:25:06 -0400, "Mr. Luddite"
wrote:



The loans being offered to small businesses as
an inducement to keep their employees employed
is running into some major problems because of
the way Congress wrote the $2T package.

One problem is a result of the Dems insistence
that unemployment benefits be increased to the
point where laid off employees can receive more
money in benefits than they earned at their
jobs.

If a small business owner applies for the loan
and he/she can convince the employees to stay
employed, the loan becomes a grant.
If the employees decide to collect instead, the
loan becomes what it is ... a loan that has to
be repaid.

Another problem is how the money from the SBA
is distributed. A certain percentage can be
applied to payroll, another percentage towards
rent, etc.

In high rent areas, there's not enough money to
pay both rent and the employee wages.

We can thank you know who for this .....

The other problem is there is no protection for the bank for fraud so
they will have to go through the same qualification regimen as they go
through when they are loaning their own money because if the loan
blows up, it is their money. This means, if you don't already have a
credit line with the bank, they are going to be looking through your
books like they would if you just walked in off the street. With the
shutdown, that will take a while.