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JLeslie's avatar

What's your opinion regarding loan forgiveness for companies who receive money from the government to maintain employees?

Asked by JLeslie (58753points) 4 days ago

From what I understand if the companies who receive money from the government keep employees on staff through 8 weeks, the companies will not have to pay the government back the money.

What do you think?

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8 Answers

ragingloli's avatar

You know they will get fired the day the 8 weeks are over.

LuckyGuy's avatar

There should be some restriction that ensures it goes to the lower level employees who need it an not the top dogs and/or the stockholders.

johnpowell's avatar

This will be abused in every possible way.

Why not just give every laid off person two months of full wages? Surely the government has that data. It would be cheaper and you would be sure the money makes it to the workers.

If the concern is rent/utilities for the companies that can be sorted separately.

Maybe this is some more supply-side bullshit.

JLeslie's avatar

@johnpowell Some of the employees aren’t laid off. I think laid off workers get unemployment. I’m not sure how that all works actually.

Can you expand on your supply side comment.

@ragingloli That’s what I think.

gorillapaws's avatar

@johnpowell “Why not just give every laid off person two months of full wages?”

I can’t speak for everyone, but our small company really doesn’t want to lay people off. We invested a ton of time and money building our team. We love them and care about their wellbeing and futures. We’re not able to perform elective procedures right now to conserve supplies for hospitals as well as limit patient risk unnecessarily. We will be forced to permanently shut down or lay off all of the staff (which woudl basically shut us down anyways) if we don’t get help.

Yellowdog's avatar

@gorillapaws speaks pretty much for all small businesses, based on what I’ve heard from business owners and executives.

If these businesses fold, there will be massive unemployment (as much as 50% or more) and a lack of goods and services. Business owners I know are desperately trying to keep their workers. I do not understand the rationale that these businesses and industries would want to fire their workers or lay them off. This makes no sense at all.

stanleybmanly's avatar

I think it ill advised to announce proposals before they are carefully considered and rationally assessed.

seawulf575's avatar

I don’t think the companies should have to pay it back anyway. The only reason companies are getting the funds is because the government has basically forced them to close their doors.

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