The Bailout

[Loren Pechtel]

And if you had read the article, they addressed that.

The Small Business Paycheck Protection Program, meanwhile, turned out to be a bust for actual small businesses. Of the original $350 billion allocated for these businesses in the CARES Act, over $243 million ended up going to large corporations. This includes the subsidizing of massive chains, luxury hotels and even Trump “megadonors” like Monty Bennett, chairman of Ashford Hospitality Trust, who Forbes says “is believed to have received at least $59 million.” As a result, only 5% of all small businesses were able to access those funds, and over 30 million are still struggling to receive relief.

If that's accurate information I don't see the problem--that's an error rate below .1%.

I strongly suspect they made a unit error here, though.

 

[Harry Bosch]

And if you had read the article, they addressed that.

The Small Business Paycheck Protection Program, meanwhile, turned out to be a bust for actual small businesses. Of the original $350 billion allocated for these businesses in the CARES Act, over $243 million ended up going to large corporations. This includes the subsidizing of massive chains, luxury hotels and even Trump “megadonors” like Monty Bennett, chairman of Ashford Hospitality Trust, who Forbes says “is believed to have received at least $59 million.” As a result, only 5% of all small businesses were able to access those funds, and over 30 million are still struggling to receive relief.

If that's accurate information I don't see the problem--that's an error rate below .1%.

I strongly suspect they made a unit error here, though.

Yea, someone saw 59 million, they assumed 59 Billion. The PPP is a good program. It gives small businesses an incentive to not lay off their workers. If they do layoff, then their grant becomes a loan with a stiff amortization (24 months). The reason why not all small businesses are taking advantage of the program is because some are ineligible, some can't claim that they are affected by Covid-19; and some have laid off their workers and do not intend to bring them back.

 

[ZiprHead]

You forgot that those 2% of businesses took most of the money available. I suggest you check your bolded math again.

Of the original $350 billion allocated for these businesses in the CARES Act, over $243 million ended up going to large corporations.

Buddy: you are incorrect. $243 million divided by 349 Billion is less than 1% of the total. Should the government have tried to prevent this. Sure. Perfection should always be the goal. But the vast majority of the PPP went to small business.

Sorry, you're right. my apologies.