Remember when the President signed to save America’s small businesses from ruin during the government’s coronavirus shutdown? Well it isn’t going to work as well as some small businesses hoped, THANKS to the Left.
The Senate’s formula allows far too little money to make up for a lost month and get through the following two or more while meeting the Senate’s demands. They made these demands to protect workers without ever realizing they weren’t providing the money a lot of businesses need to protect workers and themselves. This should be common sense but Washington will say to protect workers and the taxpayer even if the economy is crippling before their eyes.
Even if there was enough money, it simply won’t do because Mnuchin crafted loan parameters that make it nearly impossible for small businesses to meet the Senate’s demands. The loans wouldn’t qualify for forgiveness. The Treasury did this to protect the banks while pushing them to make loans they aren’t otherwise making. This problem Mnuchin knew was coming the entire time the Senate negotiated it, of course.
The Senate’s loan is generated by multiplying a business’s monthly payroll by 2.5 It covers two months and can go towards cost and utilities but you have to retain your entire workforce and put at least 75% of the loan towards them if you want to qualify for loan forgiveness. Now small businesses will crumble because they are keeping on their full staff without earning a full revenue due to the city closing you down for Coronavirus standards or what not. Unless a cure is suddenly widely available, occupancy is severely limited by the state and revenue won’t be what it once was.
Now thanks to Mnuchin, if you don’t make the Senate’s requirements you have to pay that loan back but now you might not even be able to do that either. In the bill, Congress set a window of a maximum interest of 4% and 10 year loan repayment. It was then up to the Treasury to set the final costs which they then set at a 1% interest rate and only two years to pay back the bank…two years is too little time.
And then here comes Nancy Pelosi with numerous demands put in the bill in exchange for the Democrat vote. Taking a loan may give paid leave and health insurance to your workers but now you’ve exposed yourself to numerous business costs on the brink of an economic depression. Republicans set a tax credit to pay for it all, thank goodness, but that still may leave you broke and out of business thanks to the Liberals.
Left Politicians just don’t know what it takes to run a business. They don’t understand that some small business owners never wanted to own a giant company. They just want to earn a good living working hard. Democrats don’t understand entrepreneurs because they only understand assurances and stability. They don’t like the idea of risk and exposure even if that comes with a reward, which defines business as a nature. The Left only care about covering Wall Street and the banks. It’s time for Washington to wise up and be held accountable.
