Political Wrinkles  

Go Back   Political Wrinkles > Political Forums > Economics
Register FAQDonate PW Store PW Trivia Members List Calendar Search Today's Posts Mark Forums Read

Economics Discuss the largest companies who took Payroll Protection loans meant to help small Biz at the Political Forums; Originally Posted by GetAClue A company could have been doing well prior to the shutdown, but be devastated by the ...

Reply
 
Share LinkBack Thread Tools Display Modes
  #11 (permalink)  
Old 04-24-2020, 08:01 AM
GottaGo's Avatar
Sanity is overrated.
 
Join Date: Aug 2009
Location: Miles to go before I sleep
Posts: 13,424
Thanks: 11,744
Thanked 9,810 Times in 6,004 Posts
Default Re: the largest companies who took Payroll Protection loans meant to help small Biz

Quote:
Originally Posted by GetAClue View Post
A company could have been doing well prior to the shutdown, but be devastated by the work stoppage. The company my wife works for, was sold in late 2019 with the new owners taking over on Feb 1 of this year. They were in pretty good shame financially with plenty of money backing the sale.

Business was steady prior to the lock down, but they were doing their best to keep expenses down in order to be in a good cash position to make the loan payments to pay back the loans taken out for the buyout.

But now with the lock down, even though they were deemed essential, most of their customers have shutdown. They are now only doing about 1/4th of the business they were prior to the shut down. They are bleeding cash, but need to keep operating to support those customers that still rely on them.

They worry is that they took the loan to keep those essential employees working as they still need most of them to get the work done (small manufacturing company with different operations). But if this shutdown lags on for another couple of months, their revenues will not come close to covering their expenses and could cause some of their financiers to bail on them. If that happens, they will be forced to shut the doors.

As they took the loan, it only covers their payroll for about a month or so. After that, along with the loan payments coming due, they will be strapped for cash. My guess is that they would have to liquidate their operations to pay back the loans. Bye Bye business.
We are in a very similar circumstance, having bought one company in January, and another company in the beginning of March. These were in addition to several existing companies we own, all the same franchise. As long as the company was functioning as of February 15, they are eligible to apply for one of the loans that should cover gross payroll for 2.5 months.
__________________
Your life is the sum total of the choices you make.
If you don't laugh at yourself, a whole bunch of people will volunteer to do it for you
I never lose. I either win, or I learn....
Reply With Quote
  #12 (permalink)  
Old 04-26-2020, 08:33 AM
Conservative Sage
 
Join Date: Mar 2010
Location: Scottsdale, AZ
Posts: 19,164
Thanks: 12,712
Thanked 13,673 Times in 7,967 Posts
Send a message via ICQ to AZRWinger
Default Re: the largest companies who took Payroll Protection loans meant to help small Biz

There seems to be a misconception about "market capitalization".

Quote:
the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
Because a corporation has a high market capitalization doesn't mean they have that amount available to them to pay employees or finance operations. Neither does a large market capitalization automatically make the corporation a ruthless villian unworthy of receiving aid.

The imputation of nobility to so-called small businesses is a political expedient. Often times their is no upward mobility for employees and typically their are no employee benefits such as health insurance. That's not to say small businesses aren't worth saving but just to point out the politicized process of picking winners and losers.
__________________
If Democrats were confident their nominee actually received more than 80 million votes they wouldn't have more troops occupying Washington, DC than Lincoln had defending the city during the Civil War. Not Joe Biden, Kim Jung Biden.
Reply With Quote
The Following 2 Users Say Thank You to AZRWinger For This Useful Post:
  #13 (permalink)  
Old 04-27-2020, 05:48 PM
winston53660's Avatar
PW Enlightenment
 
Join Date: Oct 2007
Posts: 10,232
Thanks: 1,853
Thanked 4,275 Times in 3,197 Posts
Default Re: the largest companies who took Payroll Protection loans meant to help small Biz

Are you on acid?
__________________
Originally Posted by TiredRetired View Post
Damn shame it couldn't have been a father / son event. IMHO.
Reply With Quote
  #14 (permalink)  
Old 04-27-2020, 06:48 PM
mr wonder's Avatar
PW Enlightenment
 
Join Date: Mar 2011
Location: Virginia
Gender: Male
Posts: 13,609
Thanks: 11,607
Thanked 7,784 Times in 5,143 Posts
Default Re: the largest companies who took Payroll Protection loans meant to help small Biz

Quote:
Originally Posted by AZRWinger View Post
There seems to be a misconception about "market capitalization".



Because a corporation has a high market capitalization doesn't mean they have that amount available to them to pay employees or finance operations. Neither does a large market capitalization automatically make the corporation a ruthless villian unworthy of receiving aid.

The imputation of nobility to so-called small businesses is a political expedient. Often times their is no upward mobility for employees and typically their are no employee benefits such as health insurance. That's not to say small businesses aren't worth saving but just to point out the politicized process of picking winners and losers.
There are 30.2 million small businesses in this country. Small businesses comprise 99.9% of all United States businesses.
Small businesses employ 58.9 million people, which makes up 47.5% of the country’s total employee workforce.
https://www.fundera.com/blog/small-b...wth-statistics

I'm not sure why some on the right have become cheer leaders for big biz and say that small businesses are "losers".

Add to that that some on the right seem to think that workers are crap, unless they "prove" themselves by working 50-90 hours a week for no pay or benefits and dying poor but honest under big biz.
Then they also piss on small biz for not being bigger, folks who are working to beat bigbiz rat race by creating a biz and working 50-90+ a week.
Usually added to that is the corollary BS assumption that all rich people and big biz got that way honestly and by hard work.

I just don't get that thinking.
what part of American culture created that mindset?

This is harsh but I have to say it comes across to me like, well,
A slave on a big plantation who thinks they own what "the master" owns, and thinks they should look down on the poor neighbors lil' 7 acre farm that the guy works with his family.
__________________
Hope is the dream of the waking man.
Aristotle

For there is hope of a tree, if it be cut down, that it will sprout again, and that the tender branch thereof will not cease.
Job 14:6-8

Last edited by mr wonder; 04-27-2020 at 06:54 PM..
Reply With Quote
The Following 2 Users Say Thank You to mr wonder For This Useful Post:
  #15 (permalink)  
Old 04-28-2020, 10:08 AM
Conservative Sage
 
Join Date: Mar 2010
Location: Scottsdale, AZ
Posts: 19,164
Thanks: 12,712
Thanked 13,673 Times in 7,967 Posts
Send a message via ICQ to AZRWinger
Default Re: the largest companies who took Payroll Protection loans meant to help small Biz

Quote:
Originally Posted by mr wonder View Post
There are 30.2 million small businesses in this country. Small businesses comprise 99.9% of all United States businesses.
Small businesses employ 58.9 million people, which makes up 47.5% of the country’s total employee workforce.
https://www.fundera.com/blog/small-b...wth-statistics

I'm not sure why some on the right have become cheer leaders for big biz and say that small businesses are "losers".

Add to that that some on the right seem to think that workers are crap, unless they "prove" themselves by working 50-90 hours a week for no pay or benefits and dying poor but honest under big biz.
Then they also piss on small biz for not being bigger, folks who are working to beat bigbiz rat race by creating a biz and working 50-90+ a week.
Usually added to that is the corollary BS assumption that all rich people and big biz got that way honestly and by hard work.

I just don't get that thinking.
what part of American culture created that mindset?

This is harsh but I have to say it comes across to me like, well,
A slave on a big plantation who thinks they own what "the master" owns, and thinks they should look down on the poor neighbors lil' 7 acre farm that the guy works with his family.
Off you go on another flight of demogoguery reflexively attacking big businesses and the Right as ruthless exploiters of the worker. Never mind the radical Leftists running the Democrat party like OAC espouse not going back to work after the pandemic restrictions are lifted, we can all live in a socialist paradise like Venezuela. Just make sure you fatten fido up first.

As you point out about half of total employment is provided by big businesses and government. Since it provides a significant portion of employment why are they excluded from the government relief payments? Remember, market capitalization is not the same as free cash flow.

BTW Walmart fills 2/3 of its management and supervisory positions via internal promotions. Mom and pop's small business only offer limited opportunities for advancement outside the family yet they are considered virtuous while large businesses often times with superior pay and benefits are vilified.
__________________
If Democrats were confident their nominee actually received more than 80 million votes they wouldn't have more troops occupying Washington, DC than Lincoln had defending the city during the Civil War. Not Joe Biden, Kim Jung Biden.
Reply With Quote
  #16 (permalink)  
Old 04-29-2020, 10:26 AM
Bat Bat is offline
Hinged
 
Join Date: Jan 2016
Posts: 2,020
Thanks: 86
Thanked 1,380 Times in 831 Posts
Default Re: the largest companies who took Payroll Protection loans meant to help small Biz

Quote:
Originally Posted by mr wonder View Post
There are 30.2 million small businesses in this country. Small businesses comprise 99.9% of all United States businesses.
Small businesses employ 58.9 million people, which makes up 47.5% of the country’s total employee workforce.
https://www.fundera.com/blog/small-b...wth-statistics

I'm not sure why some on the right have become cheer leaders for big biz and say that small businesses are "losers".

Add to that that some on the right seem to think that workers are crap, unless they "prove" themselves by working 50-90 hours a week for no pay or benefits and dying poor but honest under big biz.
Then they also piss on small biz for not being bigger, folks who are working to beat bigbiz rat race by creating a biz and working 50-90+ a week.
Usually added to that is the corollary BS assumption that all rich people and big biz got that way honestly and by hard work.

I just don't get that thinking.
what part of American culture created that mindset?

This is harsh but I have to say it comes across to me like, well,
A slave on a big plantation who thinks they own what "the master" owns, and thinks they should look down on the poor neighbors lil' 7 acre farm that the guy works with his family.
Can you site specific examples of people on the right doing/saying what you are claiming about them? I don't see anybody from any political persuasion doing/saying anything remotely similar to your outlandish claim.
Reply With Quote
The Following User Says Thank You to Bat For This Useful Post:
Reply

Tags
biz, companies, help, largest, loans, meant, payroll, protection, small, the, took, who

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Forum Jump


All times are GMT -5. The time now is 12:37 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2021, vBulletin Solutions, Inc.

Content Relevant URLs by vBSEO 3.2.0