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THREAD: Congress approved the PPP loan program to save jobs during the pandemic.
But after pressure — particularly from hotel & restaurant lobbyists — the program was altered in key ways, so less $$$ goes to paying workers & maintaining health benefits.
Here’s how: [1/6]
But after pressure — particularly from hotel & restaurant lobbyists — the program was altered in key ways, so less $$$ goes to paying workers & maintaining health benefits.
Here’s how: [1/6]
The first key move was when a clause was added late in the drafting of the legislation.
This clause allowed some big firms — mainly hotel & restaurant chains — to to be eligible as long as their individual locations had under 500 employees. [2/6]
This clause allowed some big firms — mainly hotel & restaurant chains — to to be eligible as long as their individual locations had under 500 employees. [2/6]
The next critical set of changes came in May as a response to requests from business groups that made it easier for companies to get the loans forgiven — transforming the government "loan" into more of a "gift." [3/6]
The new legislation also extended the period of time that businesses could use the money from 8 weeks to 24 weeks.
This change — combined with other aspects of the program — meant that employers could bring back fewer workers and still win loan forgiveness. [4/6]
This change — combined with other aspects of the program — meant that employers could bring back fewer workers and still win loan forgiveness. [4/6]
Finally, the new legislation dropped the requirement that companies should spend at least 75% of the money on payroll to qualify for loan forgiveness, down to 60%.
New loopholes would also make it easier to get forgiveness, even if they don’t spend 60% on payroll. [5/6]
New loopholes would also make it easier to get forgiveness, even if they don’t spend 60% on payroll. [5/6]
“It’s pretty cruel kicking people off of their health insurance in the middle of the pandemic. If they received that [government] money — that’s mind-blowing to me.”
— Christopher Cook, Omni Providence hotel worker, 22 years. [6/6] https://www.washingtonpost.com/business/2020/07/27/ppp-was-intended-keep-employees-payroll-workers-some-big-companies-have-yet-be-rehired/
— Christopher Cook, Omni Providence hotel worker, 22 years. [6/6] https://www.washingtonpost.com/business/2020/07/27/ppp-was-intended-keep-employees-payroll-workers-some-big-companies-have-yet-be-rehired/
