Wasn’t this what the payroll protection program was designed for? It’s a “loan” on which the principal and interest are paid by the government to cover payroll and rent. Instead these people are just gone.
> Their main concern is that the Treasury Department has said it expects lenders to verify borrower eligibility, and take steps to prevent fraud, money laundering and protect customer information under the Bank Secrecy Act, sources said. Banks are worried they could face regulatory penalties or legal costs down the line if things go awry in the haste to get money out the door, or get blamed for not moving funds fast enough if they perform due diligence the way they would in ordinary times, the sources said.
https://www.reuters.com/article/us-health-coronavirus-stimul...
Another example of our crisis response failing us.
> Members of the group include JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Wells Fargo & Co (WFC.N) Citigroup Inc (C.N), Truist BankBBTVA.UL and PNC Bank PNCBNK.UL.
Yeah, not taking their word for it.
See links below for more information:
https://www.forbes.com/sites/sarahhansen/2020/04/02/small-bu...
https://www.cnbc.com/2020/04/02/jpmorgan-says-its-not-ready-...
I work in-house now and we've been working with a bank to get an SBA loan for our company. We're in the fortunate position of being a good risk so we passed that part of the process, but are currently stuck in limbo, because the SBA failed to provide enough information to banks about how to actually enter a loan into the program once the applicant has passed the standard KYC/risk-assessment process.
So it will help companies with a stronger balance sheets who expect activity to support the staff they want to keep, for a while, who are willing to take the risk believing that the govt will follow through as it says it will.
Contrary to what the talking heads are saying re: the rescue/bailout bills: this is going to hurt like hell with no quick recovery likely.