After eight years of working as a housekeeper and minibar inspector, Rosalia Rodriguez was laid off in March from the DoubleTree hotel in downtown Los Angeles, one of the millions of people put out of work by a pandemic that has hit the hospitality industry especially hard.
While President Trump promoted the PPP as a tool for keeping workers employed, experts, academics and union leaders say loopholes and flaws in the program allow businesses to accept millions of dollars in forgivable loans without retaining or recalling most of their workers. “The loophole with this program is that if companies don’t intend to apply for loan forgiveness, we believe they can spend the whole loan on nonpayroll costs, despite lawmakers’ intent to have these funds used for payroll,” said Kurt Petersen, an organizer at Unite Here.
Critics of the program say the rules made it too easy for companies to take the loans and leave their workers unemployed for months or permanently. “I’m in survival mode,” he said. “Everything stops when you are terminated. All your plans for your future goals end.”to comment on the PPP loan his company accepted except to say that the money was “100% being used within the authorized guidelines of the program.”At the DoubleTree hotel, the owner applied for the federal loan on the premise that it would be used to retain 176 jobs. But union leaders say it doesn’t appear that the money has yet been used to retain that many jobs.
Greed? Crooks? Grifters? The whole PPP loan was a gift to company owners, no more no less, ugh.
This is what happens when you bailout with no oversight. As you all recall agentorange administration fired the oversight and dismantled the check and balances of where money is going.And up to this date secratary munchies is not releasing the full list of where the money went.
So the money now will become a low interest loan. Guess that fact kinda destroys your narrative. Next story please.
Their CEO kept the money for themself.
Pretty sure greed is the point.
That hotel is heartless.take back the workers!
Greed.
Company spent money at Hooters
Not true. The applications for forgiveness are extremely detailed and call for official payroll reports. I know from experience.
She should sue doubletree.
From the beginning there weren't enough safeguards put in to prevent that, & misuse of funds.
unacceptable...
Timing. The spread and recoveries are not uniform. Think before you speak, friends.
Reopen California and get people back to work! Notice the RED states are doing far better economically than states run by the Democrat Communist Party like CA.
Its ok Democrats hate businesses and will shut them down again
Thank marcorubio for throwing cash the already exorbitantly wealthy
Business owners were supposed to do the right thing with the money, instead no accountability: “Experts blame the program — not the loan recipients — for creating a situation in which employers could take the federal aid and leave many of their workers unemployed.”
This is crazy I know but when you’re not allowed to open your business you still have costs that need to be covered. I’m sure that’s where the money was spent. So they can keep their business from going bankrupt. Nothing shady here. Not sure what the point of this story was
Typical government bureaucracy. Dems throw money at people with no accountability then cry the Reps did it. PPP loans will never be repaid. It's about time this liberal paper goes after Pelosi and her PPP for accountability.
Maybe the hotel has fewer bookings & fewer dirty rooms. Ever think of that?
Oh, the irony The DoubleTree is owned by a subsidiary of Han’s Holding Group, a Chinese firm with more than $4 billion in commercial and residential assets
Because only a few are going to see any punishment. They will hold up a couple of them for the job-well-done, like this 'Florida man', but 99% will get away with it.
The PPP monies were for 8 weeks of salary, rent, utilities. I believe that folks were assuming that COVID would be over, but it didn't. Once that 8 weeks ended, there was no more money for salaries so folks got laid off again.
Lot's of companies did this. Laid off their employees anyway and ran out the back door with the money.
no
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Source: TheEconomist - 🏆 6. / 92 Read more »