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Since we're sharing anecdotes, anecdotally, the only business owner I know personally who received PPP funds (My wife's employer) needed the loan, kept everyone
by vkou 4y ago
Since we're sharing anecdotes, anecdotally, the only business owner I know personally who received PPP funds (My wife's employer) needed the loan, kept everyone on the payroll, paying them to do nothing, until PPP funds ran out, and once that happened, laid off half the staff.
He then continued running the business at a loss, paying out of his own pocket for the next year and only now has returned to something resembling profitability.
Why was the business operating at a loss? Because of the social changes brought about by COVID, it took over a year after the mandates were lifted for his customers to return to the status quo.
- Scoundreller 4y ago> He then continued running the business at a loss, paying out of his own pocket for the next year The year-by-year outlook of profit vs loss is arbitrary. How did the decade by decade history look? Any losses? Why not look at businesses second by second? Sometimes you’ll lose in 1 second what will take thousands of seconds in profit to make up. Largely corps distribute their profits to protect past earnings against future losses, but risk short-term insolvency which should be at their own risk. Likely they funded the ongoing survival of business because walking away from its equity value would have resulted in greater losses.