5 ms·

/r/smallbusiness is now pretty much all SMB owners pissed that after doing everything right, their banks are saying there's no money left to disburse. People a

/r/smallbusiness is now pretty much all SMB owners pissed that after doing everything right, their banks are saying there's no money left to disburse. People are sharpening their pitchfork tines...

duxup 7y ago
Effectively free money offered.... who knew they'd run out!?!!?
- manigandham 7y ago
  The issue is not that the funds ran out but how hard it is to even ask for the money for the small businesses that it was supposed to help.
  - duxup 7y ago
    I think the fact that there simply wasn't enough even for it being hard to ask means there wasn't enough.
WilliamEdward 7y ago
Now just imagine how the workers losing their jobs that don't have savings or loans feel.
- colecut 7y ago
  Won't this create more of those people?
mcphilip 7y ago
I’ve been wondering if something will act as a catalyst for social unrest, starting on a small scale, and wonder if the PPP could be a tipping point. There have already been reports of LLCs formed just to get free money for the wealthy and well-connected: https://www.nbcnews.com/business/economy/how-stop-business-loan-program-benefiting-rich-n1185811 https://www.nbcnews.com/business/economy/how-stop-business-l... I hope the above article is either wrong or misleading, but I do worry a tipping point could be hit that gets people out in the streets in numbers far larger than what was seen in Michigan. I sense a growing distress at how bleak the situation is in places like here in Austin where relatively few deaths have been reported but countless people with livelihoods ruined. Hopefully I’m wrong, but even having started prepping earlier than most for this lockdown, I’m still surprised every day how much worse things are getting than I imagined.
- jedberg 7y ago
  I'm not sure how one could form an LLC and get the loan. One of the requirements is that your business had to exist before they started writing the law. I think February 25th was the cutoff but I'm not sure.
  - jonathankoren 7y ago
    I imagine that they’re really talking about shell LLCs that people have to do personal things for various reasons, that have no payroll, and perhaps no assets, apply for a PPP, because they’re legally a company.
    - deleted 7y ago
      [deleted]
    - manigandham 7y ago
      If you don't have payroll then you don't qualify for this program. Even if you get the loan, it's not forgiven unless it's used for qualified expenses and at least 75% has to go to payroll costs.
- wyxuan 7y ago
  Yep. If you invested money into the stock market via an s Corp you can also apply for the money and I've heard the loans go through
  - brightball 7y ago
    An s-Corp can invest money in the stock market? I thought only a C-Corp could do that?
    - wyxuan 7y ago
      Oops s & c corps. I know someone who did it using their s Corp

/r/smallbusiness is now pretty much all SMB owners pissed that after doing everything right, their banks are saying there's no money left to disburse. People are sharpening their pitchfork tines...

duxup 7y ago

Effectively free money offered.... who knew they'd run out!?!!?

manigandham 7y ago
The issue is not that the funds ran out but how hard it is to even ask for the money for the small businesses that it was supposed to help.
- duxup 7y ago
  I think the fact that there simply wasn't enough even for it being hard to ask means there wasn't enough.

WilliamEdward 7y ago

Now just imagine how the workers losing their jobs that don't have savings or loans feel.

colecut 7y ago
Won't this create more of those people?

mcphilip 7y ago

I’ve been wondering if something will act as a catalyst for social unrest, starting on a small scale, and wonder if the PPP could be a tipping point. There have already been reports of LLCs formed just to get free money for the wealthy and well-connected: https://www.nbcnews.com/business/economy/how-stop-business-loan-program-benefiting-rich-n1185811 https://www.nbcnews.com/business/economy/how-stop-business-l... I hope the above article is either wrong or misleading, but I do worry a tipping point could be hit that gets people out in the streets in numbers far larger than what was seen in Michigan. I sense a growing distress at how bleak the situation is in places like here in Austin where relatively few deaths have been reported but countless people with livelihoods ruined. Hopefully I’m wrong, but even having started prepping earlier than most for this lockdown, I’m still surprised every day how much worse things are getting than I imagined.

jedberg 7y ago
I'm not sure how one could form an LLC and get the loan. One of the requirements is that your business had to exist before they started writing the law. I think February 25th was the cutoff but I'm not sure.
- jonathankoren 7y ago
  I imagine that they’re really talking about shell LLCs that people have to do personal things for various reasons, that have no payroll, and perhaps no assets, apply for a PPP, because they’re legally a company.
  - deleted 7y ago
    [deleted]
  - manigandham 7y ago
    If you don't have payroll then you don't qualify for this program. Even if you get the loan, it's not forgiven unless it's used for qualified expenses and at least 75% has to go to payroll costs.
wyxuan 7y ago
Yep. If you invested money into the stock market via an s Corp you can also apply for the money and I've heard the loans go through
- brightball 7y ago
  An s-Corp can invest money in the stock market? I thought only a C-Corp could do that?
  - wyxuan 7y ago
    Oops s & c corps. I know someone who did it using their s Corp