Skip to content
Do you have adblock enabled?
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Newsweek)   Small businesses will have to shut down for good despite all those loans   (newsweek.com) divider line
    More: Sad, Small business, small businesses, Business, Additional studies, Federal Reserve System, new coronavirus, reports of small businesses, new survey  
•       •       •

781 clicks; posted to Business » on 21 May 2020 at 3:00 AM (4 days ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



12 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
4 days ago  
what loans?
 
4 days ago  
We were rolling into recession either way. We were and are going to lose a lot of small businesses.  The recovery curve is not going to look good.

Fark user imageView Full Size
 
4 days ago  
No citation of the number of small businesses surveyed, where they are located, what area do they operate in...

Googling this Azlo returns only their site and a bunch of blogs (I'm serious)

In a recent survey conducted by Cajnik, 100% of wives declined to make a sandwich for their husband. Is this the new era of feminism?
 
4 days ago  

Cajnik: No citation of the number of small businesses surveyed, where they are located, what area do they operate in...

Googling this Azlo returns only their site and a bunch of blogs (I'm serious)

In a recent survey conducted by Cajnik, 100% of wives declined to make a sandwich for their husband. Is this the new era of feminism?


I would say the bigger question is were they even needed to begin with. Because lets be honest, a LOT of small business thats not in a small town is not actually needed and only exists because a small group of loyal customers kept them afloat. Its entirely possible they would have died in a few years anyways if things had never changed
 
ENS [TotalFark]
4 days ago  
PPP never made any sense to me, but I'm happy to be enlightened. It seems from the outside like a major bureaucratic hassle with  nearly impossible and arbitrary compliance rules and only really allowed participants to temporarily delay the inevitable for their employees due to lack of demand.
 
4 days ago  

toddalmighty: what loans?

The ones that went to small businesses like Goldman Sachs.
 
4 days ago  

ENS: PPP never made any sense to me, but I'm happy to be enlightened. It seems from the outside like a major bureaucratic hassle with  nearly impossible and arbitrary compliance rules and only really allowed participants to temporarily delay the inevitable for their employees due to lack of demand.


The basic premise is relatively simple: flood small businesses with cash equivalent to 2.5 months' worth of payroll expenses as a loan with 1% interest rate. Then, encourage businesses to hold on to their employees (and keep them off unemployment) by allowing total forgiveness of the loan's principle if the money is expended within 8 weeks of disbursement.

The unintended consequences (I think they were unintended, anyway): If your business was struggling in terms of having cash, furloughing or laying off your employees was the best option, and you can't predict when the PPP disbursement would occur, so you become very limited in how much of the principle can be forgiven (struggling businesses likely will get none of it forgiven). If your business somehow finds a way to be growing in this epidemic, and if you can increase your payroll by about 10% by hiring more people throughout this crisis, you'll have a great opportunity to have the entire principle amount be forgiven. The PPP ultimately gives a bit of help to struggling small businesses (a 1% loan isn't nothing), and provides significant rewards to successful, essential small businesses.
 
ENS [TotalFark]
4 days ago  

roostercube: ENS: PPP never made any sense to me, but I'm happy to be enlightened. It seems from the outside like a major bureaucratic hassle with  nearly impossible and arbitrary compliance rules and only really allowed participants to temporarily delay the inevitable for their employees due to lack of demand.

The basic premise is relatively simple: flood small businesses with cash equivalent to 2.5 months' worth of payroll expenses as a loan with 1% interest rate. Then, encourage businesses to hold on to their employees (and keep them off unemployment) by allowing total forgiveness of the loan's principle if the money is expended within 8 weeks of disbursement.

The unintended consequences (I think they were unintended, anyway): If your business was struggling in terms of having cash, furloughing or laying off your employees was the best option, and you can't predict when the PPP disbursement would occur, so you become very limited in how much of the principle can be forgiven (struggling businesses likely will get none of it forgiven). If your business somehow finds a way to be growing in this epidemic, and if you can increase your payroll by about 10% by hiring more people throughout this crisis, you'll have a great opportunity to have the entire principle amount be forgiven. The PPP ultimately gives a bit of help to struggling small businesses (a 1% loan isn't nothing), and provides significant rewards to successful, essential small businesses.


The cynic in me thinks it was slight of hand (along with the $1,200 checks) to have people distracted while Congress and the Fed institutionalized a permanent welfare backstop for the investor class.

Spending $300 billion out of a multi Trillion dollar bill constructing a born to fail PPP Rube Goldberg machine as a testament to how government can't solve problems is a pretty good ROI if you're a McConnell type.
 
4 days ago  
I only know two small business owners, one has a restaurant, the other a bar.  Both in the same strip mall.  The restaurant's business before the shutdown was about 60% take-out and they are doing fine.  The bar will never reopen, as the mall owner refuses to cut anyone any slack.  Most of the stores in the mall are closed and few of them will reopen.  It's much worse than 2010.
 
3 days ago  
Don't the realize that forced destitution was for their own good?
 
3 days ago  

wejash: We were rolling into recession either way. We were and are going to lose a lot of small businesses.  The recovery curve is not going to look good.

[Fark user image image 425x276]


Where's your evidence of that? Due to covid19, many firms are forecasting steep cuts in capital spending. Companies don't spend $billions$ (which is what the projects are worth) expanding when they see an imminent recession.
https://www.zdnet.com/article/cfos-pl​a​n-capex-and-it-cuts-as-well-as-layoffs​-due-to-covid-19-says-pwc/
 
3 days ago  

natazha: I only know two small business owners, one has a restaurant, the other a bar.  Both in the same strip mall.  The restaurant's business before the shutdown was about 60% take-out and they are doing fine.  The bar will never reopen, as the mall owner refuses to cut anyone any slack.  Most of the stores in the mall are closed and few of them will reopen.  It's much worse than 2010.


I have no complaint against mall owners (or landlords in general) being firm with tenants, and demanding payments per the contract. Yeah, it comes across as a jerk move; but, some tenants will ultimately make good under the terms of the lease agreement and there's so much public hostility towards landlords that coming across as a jerk really isn't considered to be out of character (and it doesn't appear to ever impact the bottom line). For those tenants who ultimately can't make good under the terms of their lease, the landlords can consider working with individual cases to amend the terms and move forward. Malls, as a great example, aren't likely to have an infinite waiting list of businesses that are eager to lease space, so while the landlords posture now it may later become evident that it's best to keep the properties occupied in the near term. There's hope for that bar; just need to play hardball and wait things out.
 
Displayed 12 of 12 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking





On Twitter




In Other Media
X
  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.