2 ms·
On face value, this seems like a no-lose proposition. Loan forgiveness, minus 1% interest, so basically free money. What are the downsides, theoretical or othe
by aazaa 7y ago
On face value, this seems like a no-lose proposition. Loan forgiveness, minus 1% interest, so basically free money.
What are the downsides, theoretical or otherwise, of taking this money?
- AndrewBissell 7y agoTo apply you have to make certain representations that you need the money as a result of COVID-related disruptions and will use it only for certain purposes, and one is at least theoretically criminally liable for filing a false statement if that's not the case. Also, you only get the loan balance forgiven if it goes to payroll (must be at least 75% of the total), rents, and utilities.
- adventured 7y agoThere are very few downsides. You just have to make sure you follow the program guidelines. For example 75% has to go to payroll, only 25% can go to other expenditures such as rent or debt interest. People are understandably worried about the money having already been exhausted for the program. This isn't going to be the last round they do, for either individuals or small businesses.
- cinquemb 7y agoSystemic moral hazard, zombie companies enabled to continue to engage in more over capacity at a time when demand is falling off the cliff side, etc. C17H19NO3 for those who don't know they're in the hospice yet. Things most of my fellow americans dont give a shit about though lol Oh well, don't live stateside so meh.