Jump to content

The small business welfare money is gone. Now what?


hegemony
 Share

Recommended Posts

1 hour ago, CreditSucksNot said:

Actually I think it is.  In general to qualify for unemployment you have to have lost your job through no fault of your own AND be willing, able and actively seeking employment.  A colleague here was laid off last summer because she was in nursing school and only wanted to work on Fridays.  The employer had a bigger need.  She filed for unemployment when they let her go but because she was enrolled in school full time and not available for almost any job offer she never collected a dime.

 

Many businesses are not going to open at the same demand before the stupidity started.  Restaurants here in Vegas are limited in capacity for dining in.  If an owner contacts an employee and offers 50% hours 4 days per week and they reject working why should they continue to get money from the employer for refusing returning to work?  If they want to reject the offer believing they deserve more or can do better then so be it but the employer or unemployment should not have to continue paying them to sit at home gaming the system for more money.  If the employee accepts the modified offer they would still qualify for partial unemployment based on returning to work but at reduced pay from prior to the shutdown.  While it is less than what some are making now the only way to ensure that as few as possible sit at home not working because they make more doing nothing and collecting government money for it.

 

The PPP was meant to replace income if employers have no choice but to close the doors NOT to keep paying people to incentivize them to not return to the job at all.

 

794912cf-6a01-4c82-ae72-e933c085d3ee

 

If those changes to the unemployment requirements go through, watch for the argument to become:

 

going back to work = certain death

 

The histrionics have become predictable.

 

Edited by cv91915
Link to comment
Share on other sites


Unpopular observation: pretty much any "small" business could qualify, even hobbies mascaraing as "small" businesses and the "loans" are not really loans but instead welfare for businesses that didn't plan for economic crises. And now even "small" businesses that did not live up to the promise to maintain labor levels can get the welfare forgiven. Owners of these "small" businesses are not even required to get drug tested to qualify!!!!!

 

 

 

Link to comment
Share on other sites

In some places, the economy is starting to open albeit very slowly and at severely reduced capacity. If employees are called back, and accept employment, but lose a percentage of income as a result, it doesn't help them in the here and now. It sets them back causing further pressure to continue evictions freezes and calls for increased financial help.

 

 

 

 

 

 

 

 

 

Link to comment
Share on other sites

53 minutes ago, NorCalR1 said:

In some places, the economy is starting to open albeit very slowly and at severely reduced capacity. If employees are called back, and accept employment, but lose a percentage of income as a result, it doesn't help them in the here and now. It sets them back causing further pressure to continue evictions freezes and calls for increased financial help.

 

 

 

 

 

 

 

 

 

There are some businesses that understand that even if everything opened 100% today they are still going to have to accomodate the new normal of consumer preferences. See, for example, Despite getting green light, many Las Vegas businesses not rushing to reopen

Link to comment
Share on other sites

3 hours ago, cv91915 said:

Most of these laws get feel-good names and/or acronyms, but I think they purposely avoided calling it the "We'll Pay You to Sit on Your Ass at Home Instead of Going Back to Your Job Which is Waiting for You Recovery Act (WPYSYAHIGBYJWWYRA) of 2020."

Actually "The We'll Pay You to Sit on Your Ass at Home Act" is a feel good name. JK 😉

Link to comment
Share on other sites

2 hours ago, NorCalR1 said:

In some places, the economy is starting to open albeit very slowly and at severely reduced capacity. If employees are called back, and accept employment, but lose a percentage of income as a result, it doesn't help them in the here and now. It sets them back causing further pressure to continue evictions freezes and calls for increased financial help.

Median individual income in the US is in the low $30,000s.  That's been covered solely by the extra $600/week in additional unemployment benefits.

 

On top of that, people with individual incomes as high as $75,000 (more than 200% of median income) have received up to $1,200 per individual and $500 per child in stimulus payments.

 

Plus regular unemployment benefits.

 

At the same time, they've had no childcare or commuting expenses, and entire categories of discretionary expenses (dining, for example, and entertainment like movies, concerts, sporting events) have been virtually impossible to incur.

 

If you filter out all of the people who won't be behind after factoring all that in, I don't think you have vast numbers of people who would be behind by going back to work part time while also receiving partial unemployment.

 

Obviously the last statement depends on how long the employment income is less than it was before, and how long they continue to be eligible for unemployment.

 

 

Edited by cv91915
Link to comment
Share on other sites

  • 1 month later...
6 hours ago, hegemony said:

imagine that! some idiot in Texass faked biz welfare! Texas Man Charged with COVID-Relief Fraud, False Statements and Money Laundering

 

I wonder how many did NOT get caught...

Fahad Shah, 44, of Murphy, Texas, was charged in an indictment filed in the Eastern District of Texas with three counts of wire fraud, one count of false statements to a bank, and four counts of money laundering. 

Link to comment
Share on other sites

6 hours ago, Rogue said:

Fahad Shah, 44, of Murphy, Texas, was charged in an indictment filed in the Eastern District of Texas with three counts of wire fraud, one count of false statements to a bank, and four counts of money laundering. 

"The indictment alleges that Shah submitted fraudulent applications for over $3 million in PPP loans to two different SBA-approved lenders filed under the name of WBF Weddings by Farah Inc. In these applications, Shah claimed to have over 120 employees earning wages when, in fact, no employees worked for his business at the time, the indictment alleges.  The indictment also alleges that Shah submitted fraudulent documentation in support of his applications.  Shah ultimately received over $1.5 million in PPP loan funds and used the funds primarily for personal purposes, including purchasing a Tesla, personal investments, and home mortgage payments, the indictment alleges."

 

I vaguely recall offering some warnings about misuse of the helicoptered funds when one of the CB users asked about using them for personal items...

Link to comment
Share on other sites

Ha!

 

Completely fraudulent applications for $3M vs borrowing some funds for a non-approved use and paying them back.

 

I can't believe you would actually compare these two activities with a straight face in terms of their legal severity and likelihood of prosecution.

Link to comment
Share on other sites

As expected, small, medium, and even large businesses are facing tough times, laying off staff, reducing hours, etc and not able to stay afloat thus causing them to file bankruptcy and/or closing some locations permanently. Now slowing down the reopening is causing even more financial stresses on business.

 

 

 

 

Link to comment
Share on other sites

34 minutes ago, hegemony said:

What would you call free money? these biz owners weren't even drug tested!

And all of them should be to receive loan money? And who said the money is free? You do have to pay it back. PPP can be forgiven if you submit the forgiveness paperwork for EIDL is not....

Link to comment
Share on other sites

34 minutes ago, IvyMgmt said:

And all of them should be to receive loan money? And who said the money is free? You do have to pay it back. PPP can be forgiven if you submit the forgiveness paperwork for EIDL is not....

 

exactly. free money and most of these companies will still lay people off.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

Guidelines