Small Business Gets It, Good & Hard

How many of these whiners voted for that fat lying fuck Trump because they thought their fucking taxes would be lowered? Seriously, how completely useless/"non-essential" are restaurants? Pick a useful service next time, restauranteurs, & stop the moaning.

Restaurants are among the hardest-hit businesses during the coronavirus shutdown. The National Restaurant Assn. estimates that 3 million restaurant employees lost their jobs in March, a month in which restaurants lost about $45 billion in revenue. The industry is bleeding out.

But while the airlines enjoy a $25-billion bailout, the CARES Act — a federal stimulus package for businesses and individuals affected by the coronavirus pandemic — and its centerpiece, the Paycheck Protection Program, is the equivalent of a Band-Aid — one of the small ones that goes around your finger.

It’s leaving local restaurants and other small business owners wondering: Where’s the money? In the meantime, large chains like Ruth’s Chris Steak House and Potbelly Sandwich Shop are allowed to suck the fund dry, having been granted multimillion-dollar loans.

The PPP is a Small Business Administration loan program designed to give small businesses financial relief. Businesses can apply for up to 250% of their monthly payroll: If your payroll is $100,000 per month, you can apply for a $250,000 loan. The loans are forgiven if 75% of the money is used to pay employees.

Sounds simple, right? In reality, it hasn’t worked out that way, particularly for smaller, independent businesses.

After opening applications on April 3, the SBA announced Thursday that the $350 billion earmarked for the program is gone, stating: “The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.”

That leaves many businesses, particularly clients of large banks who prioritize their wealthy clients, in the dark. Fewer than 6% of applicants have received their PPP loans, according to the website COVID Loan Tracker, which has compiled data from 15,000 small businesses. The hospitality industry has fared poorly; despite being among the hardest hit, only 9% of loan approvals have gone to “accommodation and food services,” according to the SBA.

The vast majority of the nation’s 30.2 million small businesses have been left flapping in the wind. Meanwhile, the rich get richer.