4 ms·

Well, firstly, these aren't loans in the traditional sense. The Paycheck protection programme (which is what this funding was) was a scheme where you could borr

Well, firstly, these aren't loans in the traditional sense. The Paycheck protection programme (which is what this funding was) was a scheme where you could borrow money from the government and as long as you use 75% of the money for payroll, and don't lay off any staff for 8 weeks, then the loan is forgiven and you don't have to pay it back. So the point is that it's actually not a loan, for the people who got the money, it's almost certainly just free money. Which is why people are outraged that the money overwhelmingly went to the well-connected large businesses who had the most resources to weather the storm, and the money ran out for real small businesses.

user5994461 7y ago
On the bright side, if it is true that they can't layoff anybody for the next 8 weeks and there is no loophole. This could save the economy from incredibly large rounds of layoofs, remember that large companies each employ many people. This could dramatically help to stabilize the economy if the lock down is relaxed before the 8 weeks term.
julianozen 7y ago
Thank you! Aren't these payouts still serving their purpose though if these large companies keep people employed. These large companies represent a lot of jobs