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What percentage of PPP loans went to businesses that negative revenue impacts due to covid? PPP program was poorly structured, forgiveness should have been ba
by adrr 4y ago
What percentage of PPP loans went to businesses that negative revenue impacts due to covid? PPP program was poorly structured, forgiveness should have been based on revenue impacts to the company which can be easily measured by using previous tax payments.
We chose not take a PPP loan because our industry saw record growth during Covid and it wasn't morally right to take advantage of a program meant for struggling businesses. Our competitors received money even though they also had record revenue growth. We were punished for doing the right thing because that capital could been have been used to invest in the business.
- indymike 4y ago> We were punished for doing the right thing because that capital could been have been used to invest in the business. PPP had two goals: prevent business closures and layoffs, and stimulate the business economy (companies were cutting spending too). Yes, the capital could have been used to invest in the business, hire more people, etc, which all stimulate economic activity.
- adrr 4y agoStimulus wasn't one the stated goals. The stated goals were to help payroll with small businesses that were adversely affected by COVID19 pandemic. https://www.federalregister.gov/documents/2020/04/15/2020-07672/business-loan-program-temporary-changes-paycheck-protection-program https://www.federalregister.gov/documents/2020/04/15/2020-07... https://en.wikipedia.org/wiki/Paycheck_Protection_Program https://en.wikipedia.org/wiki/Paycheck_Protection_Program - scroll to purpose