Quote:
Originally Posted by Jacuzzme
Then the business owner has to pay it back, and will already be strapped from all the productivity lost. Not that just sending checks out is a good idea, but burdening business with debt right as they’re trying to get back on their feet doesn’t seem to great either.
Kind of a FU to those who paid cash or paid off their mortgage. This is why commie Bernout’s plan to pay off college debt is so lame. I lived on franks and beans and paid for mine, the Mrs’s, and two kids college educations, will I get reimbursed for that? If not, GFY lazy millennial fucks.
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My fault for not explaining it better. The "loan" if used to pay laid off workers, will not have to be paid back. If you use it for anything other than paying your laid off employee's, you will have to pay it back.
This is different than bailing out a failed business because of the owners incompetence or natural "market forces". This has happened because our government has mandated these business be shuttered and therefore the responsibility of government ( all of us ) to make these businesses and their employees as whole again as possible so that we can recover from this.
While getting money out to people who need it and only people who need it, is the right thing to do all things considered, giving out $1,000, $2000 checks willy nilly to everybody is a really, really stupid idea along the lines of paying for a college education for the child of a millionaire because we wouldn't want to "discriminate". Well, I do want to discriminate and any time the government decides to give out money, it must be strategic. Here is the plan in more detail.
Senator Collins Unveils Plan to Preserve Jobs and Protect Small Businesses During Coronavirus Pandemic
In:
Press Releases
Posted Tue, 03/17/2020 - 17:54
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Washington, D.C.—U.S. Senator Susan Collins, a senior member of the Appropriations Committee and a member of the Health Committee, unveiled a legislative proposal today that would help prevent Americans from losing their jobs and keep small businesses from going under as a consequence of the coronavirus pandemic.
“I have been working with Secretary Steven Mnuchin and a group of my Senate colleagues, including Small Business Committee Chairman Marco Rubio, on legislation to address an issue facing small businesses in Maine and throughout the nation,”
said Senator Collins. “Our plan will address the cash flow problem that small businesses are facing through no fault of their own by providing guaranteed federal loans to be used to pay their workers. An example is the hospitality industry in my state, where we have numerous restaurants, hotels, and B&Bs, that are being affected already due to the cancellation of graduations, conferences, and other events. As long as the business does not lay off any of its employees, the loan would be forgiven when it matures.”
“The purpose of this bill is to help workers keep their jobs and make sure that businesses that were thriving prior to the recent outbreak will be able to remain open once the crisis has passed,”
Senator Collins continued.
Specifically, Senator Collins’ bill would:
· Provide cash-flow assistance quickly to employers who agree not to lay-off their workers. This cash-flow assistance could be as much as the employer needs to stay in operation without lay-offs. The cash-flow assistance
must be used to pay employees.
· When the crisis passes, the cash-flow assistance would be forgiven, so long as the employer keeps their workers employed and paid.
· This cash-flow assistance would be structured as federally-guaranteed loans made available through any lender qualified to make SBA 7(a) or 504 loans, and also FINTECH lenders approved by the Secretary.
· Terms would match those of SBA’s Economic Injury Disaster Loans (EIDL), except that the loans would be fully forgiven if the employer keeps its workers employed through the crisis.
· The amount loaned could either be drawn from a line of credit as needed, or the employer could estimate up front the amount it needs to cover lost revenue needed to make payroll during the crisis.
· If the employer draws more than is needed, the employer could repay the excess without penalty when the crisis is over. Alternatively, and if the employer otherwise qualifies, the excess could be converted to a loan on standard terms.
· Loans would be available for the duration of an “emergency period” beginning on March 1 and ending June 30, unless extended through December 30. Loan forgiveness would accrue over the same period.
I have to admit, I'm a bit confused as to the language about agreeing "not to lay off workers". That sounds like they are trying to keep businesses open which of course the government has mandated many shut down. I am assuming they are talking about giving laid off workers the money they would ordinarily make if they were still working. That is the only reasonable way to interpret this so I hope that is the case.
