Not So Small Companies Getting PPP Loans

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Dave27360

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The original SBA mentioned the following criteria to recieve a PPP Loan
Source Paycheck Protection Program

The following entities affected by Coronavirus (COVID-19) may be eligible:
  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500
      *** Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location**
  • Sole proprietors, independent contractors, and self-employed persons
I have heard both sides of the issue. One side says money should go to larger small businesses because they have more employees which means the money should be helping more people.

The other side of the issue which is mentioned in the NPR article is companies are getting money that don’t need the money or are getting larger loan amounts resulting in smaller companies not being able to get the money needed.

Can some small business owners provide their opinion on the issue so that we can better understand their side? How does this apply to Catholic social teaching?
 
I got my PPP money as a SBO. I’d say the only rationale for giving it to larger companies is there are few applications to process. The larger downside is most of them will not go out of business during the crisis. That applies to Harvard, Ruth’s Chris, and Shake Shack.

The small businesses will. Technically, the PPP money was to keep businesses afloat by allowing them to keep people on payroll. If that is the case, giving them to larger businesses that will now go out of business either way makes little sense.

They should have segregated the money into 2 separate programs.
 
Dr_Meinheimer said:
They should have
Click to expand...
This is the operative phrase:

“They” being the federal government…At every turn, from the science to the economics, any attempt at mitigation has been woefully mismanaged, or just not managed at all.

He doesn’t like to hear it, and admits he takes no responsibility, but his own interference and/or ineptitude proves we have the wrong Chief Executive. If the Nation was a business, the President would be fired!

We don’t have a board meeting scheduled, but we do have an election, where each of us are stockholders with a vote!
 
If you have a problem with the PPP, I suggest you take it up with Congress. They crafted it.

I do plan on voting for him enthusiastically in the fall; thanks for the reminder.
 
Dr_Meinheimer said:
If you have a problem with the PPP, I suggest you take it up with Congress. They crafted it.
Click to expand...
This is the real problem. The law was clearly crafted to be available to businesses like franchised restaurants. But now that there is a public outcry, the politicians are not standing by what the voted for. I mean, the limit is $10M, what small business has $10M in payroll in a 2.5 month period? They knew larger businesses would apply, and crafted it so that they could. (But won’t admit that now.)

They should have set aside a portion for truly small businesses, or crafted two programs (as you said). But they didn’t, and now they are upset that businesses are applying for the program that they crafted.
 
Just goes to show, everyone loves that government money. A cashed check is non-partisan.
 
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