1 in 5 U.S. small firms plan layoffs after using PPP loan

[durablend]

Source: Tribune News Service

An increasing number of U.S. small businesses plan to lay off workers after using a federal coronavirus relief loan as many states are slowing or changing reopening plans amid a spike in cases, a new survey shows.

About 22% of firms that received Paycheck Protection Program assistance have fired workers or expect to lay off one or more workers once their loan runs out, up from 14% last month, according to a National Federation of Independent Business survey of its members. The PPP, a key federal stimulus program, was meant to keep workers on payrolls during the pandemic.

“As owners finish using their loan, more are finding that economic conditions are unable to support current staffing levels,” the NFIB said in the survey released Friday.

Most surveyed businesses that have requested a PPP loan have received it, with 56% of borrowers reporting they have spent all of their loan funds and the remaining 44% likely not far behind, the NFIB said.

Read more: https://www.pennlive.com/coronavirus/2020/07/1-in-5-us-small-firms-plan-layoffs-after-using-ppp-loan.html

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Let's just keep shoveling money at them while screwing over the populace. That'll fix things!

[JI7]

1. I knew this was shit from the start. regular direct payments

was the way to deal with this from the start.

[Grokenstein]

2. My corporation got a bailout

and immediately tried to kick everyone down to part-time so they would have a few billions in reserve to "bounce back faster than our competitors" when COVID-19 "was over." Congress, to their credit--and this even includes a few real filthbags like Dan Crenshaw--told 'em to eat a bag of salted dicks. The bailout's coverage period runs out soon, and we've been warned the axeman cometh...unless we can beg up another bailout.

(cue Merry-Go-Round calliope music)

[cstanleytech]

3. They should help the small and I mean small businesses and not franchises

via tax credits if they do not layoff nor reduce their staff hours below 35 a week.

[bucolic_frolic]

4. The Fed and Treasury are out of control, distorting the economy

Every economic rough spot, they flood the economy with money. Every market stumble, they flood investment banks and hedge funds with cash. Now they're buying direct debt from companies, and I believe ETF's if what I read here or there is true.

The result of a business cycle that never competes its downward phase is overcapacity. Businesses that can't survive without infusions of debt and cash. Lower wages.

And a stock market bubble that gets its daily feed. We do not have free markets. There is light volume most days, the market makes one morning move and stays there for the duration.

QE1-2-3 supported debt and banks, "too big to fail". Flooding consumers and employers with cash in a contracting economy is a risky and likely inflationary policy. The bubbles grow bigger each week and month, there is a disconnect between output and demand.

[Tom Rinaldo]

5. Which is why Trump pushed "reopening" so hard

He needed the public out of their homes and into the marketplace quickly, without that these layoffs were inevitable. Trump bought into the theory that the first wave of Covid-19 would peak in late Spring, and that a second wave would not hit until November, around the time when the flu starts to circulate. That was always fine with Trump, it would hit after the election which he thought he would win by tricking people into believing everything was back to normal during the predicted summer lull.

[Luciferous]

6. My husband's company did this, took the PPP loan and then laid off a bunch of people and cut

hours.