FitzGerald said he had concerns about the attention it would draw, in particular to the firm's investors and board. The company concluded that it might be taking money away from other organizations more in need and that the funds weren't a long-term fix. The firm, which employed 130 people at the outset of the pandemic, later got a loan from another lender. FitzGerald said the potential questions spurred by the PPP loan "would probably have been pretty distracting.
A growing list of well-known companies have said they plan to return the funds. Shake Shack was the first major corporation to announce the return of its loan, after it raised $150 million in the markets. The burger chain was followed by other national brands including Potbelly, Ruth's Hospitality Group and Taco Cabana.
The Treasury Department and the SBA first responded to the backlash on April 23. They told borrowers to pay closer attention to the certification they have to make when applying for the loans that states "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.
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Magic Johnson’s Life Insurance Company Reportedly Funding $100 Million In Small Business Loans“This is, when you think about it, life and death for so many business owners. They have nowhere else to turn.” Huge, positive gesture from Magic. But as a Life insurer, this is playing with fire. Salute Magic sheer genius
Source: Forbes - 🏆 394. / 53 Read more »
Magic Johnson Makes Another Assist—to the Small Business Aid ProgramEarvin “Magic” Johnson said his EquiTrust Life Insurance Co. will provide $100 million in capital to fund loans for minority-owned businesses through the Small Business Administration’s Paycheck Protection Program. That's is so respectable ❤️ Just tell us how you cured that virus homie Perhaps Earvin doesn't think white communities were hit hard by the Coronavirus. This is racism in it's purest form.
Source: WSJ - 🏆 98. / 63 Read more »
Reality star charged with spending funds from federal small business program on jewelry, Rolls-RoyceMaurice “Mo” Fayne, from “Love & Hip Hop: Atlanta,” is one of the first people to be charged with misusing the funds. He is fighting the charges in court. Probably not - the usual 😂 The prosecutors probably entrapped him, & rushed the case because he was a black guy. Any good lawyer would have his case dismissed in court - the law’ vague on these funds, as they were rushed by Senate without much thought. Big Companies were asked to just pay back.
Source: washingtonpost - 🏆 95. / 72 Read more »
U.S. Expected to Revise Small Business Aid ProgramLawmakers and government officials are preparing to make significant changes to the Paycheck Protection Program, amid cooling demand for government-backed loans and criticism from business owners. Amazing that it took 'officials' so long into the crisis before the realized that their initial scheme was a ridiculous failure. Now how long will it take them to implement something that actually helps small business to survive state-imposed closure? Here is a plan: just reopen. Florida and Georgia are leading the way. AMERICAN BANKRUPTCY IN PROGRESS COURTESY OF THE LYING CORRUPT CRIMINAL PRESIDENT AND HIS ADMINISTRATION.
Source: WSJ - 🏆 98. / 63 Read more »
Exclusive: U.S. Justice Dept. subpoenas Wall Street banks for small business loans info - sourcesThe U.S. Justice Department has sent grand jury subpoenas to big banks seeking records as part of a broader investigation into potential abuse of a $660 billion emergency loan program to help small businesses hurt by the novel coronavirus, two people with knowledge of the matter told Reuters. Wells Fargo has been caught doing anything awful for at least a week. I wonder how much of this money went through them. Wells Fargo hasn't been caught doing anything awful for at least a week. I wonder how much of this money went through them. Those banks are businesses too, why not loan them money too?
Source: Reuters - 🏆 2. / 97 Read more »