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Kanye West made $170 million this year, but took a $2-5 million PPP loan from the federal government that could have gone to a small business whose owner didn’t have it sitting in his personal bank account.
It was 2% of Kanye’s income. This is wrong. https://www.forbes.com/sites/elanagross/2020/07/06/billionaire-kanye-wests-yeezy-received-a-multimillion-dollar-ppp-loan/
It was 2% of Kanye’s income. This is wrong. https://www.forbes.com/sites/elanagross/2020/07/06/billionaire-kanye-wests-yeezy-received-a-multimillion-dollar-ppp-loan/
PPP program was a finite amount of funds meant to help keep people employed.
But because funds went to people like Kanye, who has the means to pitch in and save his own employees’ jobs and not beg the federal government to pay, many smaller businesses went without.
But because funds went to people like Kanye, who has the means to pitch in and save his own employees’ jobs and not beg the federal government to pay, many smaller businesses went without.
He can say it saved 100 jobs at his company but he ignores the fact that
*he* could have saved 100 jobs at his company.
*he* could have saved 100 jobs at his company.
I focus on Kanye because Forbes just released its highest paid celebrities list and he was #2 (behind sister in law Kylie Jenner). But hedge funds and other celebs also got PPP loans. The program did not favor small businesses in real trouble, restaurants in particular.
Kanye, Khloe Kardashian, Tom Brady, Jared Kushner’s family, billionaire developers—all snapped up these loans. Their access to banks—and no doubt in some cases the Trump Admin—helped them get to the front of the queue.
Thoughtful piece about why the wealthiest folks getting emergency federal funds isn’t the spirit of the program. The government should take a glance at incomes of business owners to determine whether they really *need* federal help more than others. https://www.sbnation.com/nfl/2020/12/6/22156289/tom-brady-business-ppp-loan-tb12-million
Another reality is that the government guided the program in a way that locked in loans for eligible businesses and left many out of the equation. That needs to change.
But take a dive into the last year. Recipients might argue PPP was available to many and claim they never took from someone else.
But realize that the first round of loans were snapped up in thirteen days. How many small businesses failed in the interim? https://www.npr.org/sections/coronavirus-live-updates/2020/04/16/835958069/small-business-emergency-relief-program-hits-349-billion-cap-in-less-than-2-week
But realize that the first round of loans were snapped up in thirteen days. How many small businesses failed in the interim? https://www.npr.org/sections/coronavirus-live-updates/2020/04/16/835958069/small-business-emergency-relief-program-hits-349-billion-cap-in-less-than-2-week
The second round of money went much slower: businesses reported confusion about applications, guidance, rules of the program. Banks have been accused of pushing bigger clients to the front of the line. Loan sizes got smaller. Just not efficient. https://www.npr.org/2020/05/28/863387203/why-the-small-business-rescue-program-has-slowed-way-down
Our system spent billions on a program that did not target the areas which were most vulnerable. Instead, wealthy and large businesses got government loans and maintained profits. Thats good for some aspects of the economy, but reality is people have empty bank accounts.
We have to do better.
