Stimulus aid for 'small business' will go to some big chains

[Judi Lynn]

Source: Associated Press


Ryan J. Foley, Associated Press Updated 4:43 pm CDT, Thursday, April 2, 2020

IOWA CITY, Iowa (AP) — As the federal government prepares to launch a $349 billion loan program meant to help small businesses survive the coronavirus pandemic, critics have growing concerns that some mom-and-pop shops might get squeezed out.

The Paycheck Protection Program — part of the $2 trillion relief package signed into law last week — was billed as a way to help local businesses that often form the fabric of communities retain workers and pay bills. But an expansive definition of “small business” in the law means that it will be open to much more than just Main Street shops when lenders start processing applications Friday.

Operators of name-brand hotel, restaurant and service chains and franchises with thousands of employees at locations scattered across the U.S. are eligible. Lobbyists are also pushing the Small Business Administration to interpret the law generously to help sectors devastated by mandatory business closures and stay-at-home orders, possibly making the aid available to international fast food and lodging giants and allowing individual owners to get around a $10 million cap on loans.

While Congress could approve more money later on, the program as it stands is expected to run out quickly. That could mean applicants who have the financial and legal expertise of a larger organization might be able to maximize their benefits, not leaving much for smaller businesses, especially those who wait or have problems applying.

Read more: https://www.chron.com/news/medical/article/Stimulus-aid-for-small-business-will-go-to-some-15174622.php

[Stuart G]

1. K and R..Thank You for posting.

[Judi Lynn]

8. Thank you, Stuart G.

[OldBaldy1701E]

2. You don't say!

The government worded something in a way that would actually favor their big donors and not everyone else?? That our government, the one tasked with being of, by, and for the people, is only going to help a select few, like a freaking king and his court? I am stunned into silence... (HAH, that ain't gonna happen... except for maybe a few moments as I weep softly for being such a childhood idiot as to ever think it was about all of us...)

[rockfordfile]

3. What a waste

[cstanleytech]

4. My opinion if you are part of a chain you are not a small business end of story.

[democrattotheend]

11. Franchises are a bit of a gray area

Often they are legit small businesses that just pay the corporate chain for the right to use the name, products, etc.

[cstanleytech]

12. Sure if its a small chain but when you get into one like the size of McDonalds I think it crosses

the line.

[DeminPennswoods]

13. Franchisees are more small business than big

Yes, they are standarized by the parent company, but they don't all operate exactly the same way. There's a franchise restaurant near me that tried to get by on takeout, couldn't and now are temporarily closed. All their employees filed for state unemployment. I would have no problem with them getting a loan that turns into a grant if they keep and keep paying their now-out-of-work employees.

[LastLiberal in PalmSprings]

5. The question is not whether but how much of he stimulus money Trump will get.

My guess is $20 million.

[lark]

10. Ha, he will take the vast majority of it, he's too greedy to do anything else.

The remainder will only go to companies that provide huge donations to him and they will not pay back one red dime, watch and see.

[iluvtennis]

6. Absolutely shameful. I hate the GOP. nt

[Progressive Jones]

7. I hate them more. nt

[lark]

9. Of course it will and I'd be shocked if any small businesses get anything.

This is the drumpf maladministration we are talking about. They hate the small people, working class & poor and fuck us every way they can, including giving $$ to big business dedicated for small business. PUtin is paying him well to totally destroy America and it's working class & Traitor Tot is going along with this full speed.