I was asked today why I'm so angry with billionaires like Richard Branson. I'll give you the long answer. 60% of the PPP US funds went to publicly traded companies and companies with assets in the billions. Billionaires, people who have credit lines and loan options.
Most of them will return to seriously large revenue when business is back up and running but they took tax payers money. Companies like Delta, who took $10 billion despite making $4.77 billion in net profits last year. They didn't save for a rainy day, or make contingency plans.
Because they spent a lot of money buying back shares and other fun stuff. They aren't alone, Ruths Chris Steakhouses did the same, so did Pot Belly, tens of millions of dollars went to companies with serious cash in the bank, or enough assets to get the cash they need.
According to Buzzfeed News, & the @NFIB one @Potbelly executive got a $100,000 signing bonus the same week the company took $10 million in tax payers money. Tell me that's right? Now, back to Richard Branson, who yesterday posted a defense of why life is hard as a billionaire.
Branson says he's willing to put up his private island as collateral because, 'he isn't cash rich'. Uh huh, that private jet back of his obviously runs on pixie dust. He magically forgets that assets can be leveraged. I was sure that was in 'Screw it, let's do it? Maybe not?
What's funny is that Branson had enough spare cash to bank roll Gina Miller and her anti democracy campaign against British Independence, but all of a sudden he's broke and has no spare cash? Do me a favour. I'm not buying that, and neither are the British public.
I'm a small business owner. According to JP Morgan Chase, 'Over 99 percent of America's 28.7 million firms are small businesses. The vast majority (88 percent) of employer firms have fewer than 20 employees, and nearly 40 percent of all enterprises have under $100k in revenue.
Small businesses accounted for over half of net job creation in 2014. And, about 50% of all US employees work for small businesses. So guess what? Small businesses keep America going. BUT - 60% of the PPP funding went to less than 1% of the companies.
According to Bloomberg, more than a dozen publicly traded companies with revenues of more than $100 million received small business loans. That's obscene. It's a misuse of public funds, and government knows it, but lobbyists from big business keep that cash flowing for them.
In 2009 I lost everything in the market crash, job, house, you name it. First we used our savings, then we borrowed against the house, then we sold most everything we had, then we went to the bank again and asked for a loan, they said 'no' because we had no collateral left.
We went to family, they helped where they could, but none of them were wealthy. I took unemployment because I had paid my taxes, & that is one reason we do so. They asked if I had savings or assets I could use. Had we had either, they would have refused benefits, and rightly so.
We lost the house eventually, had to short sale it, and yes, it sucked. Eventually by Gods grace and some hard graft, I was offered a job in South Africa. We had no idea what to expect, but we leaped at the chance. That was hard too, but awesome.
It was there, later that year, I started my first company, we have been going ever since and we now have a few more small businesses and the most amazing employees. At no point did I go knocking on the doors of random people demanding money. I didn't feel entitled to anything.
So why is it the uber rich often feel entitled to make demands of the tax payer to benefit a private company with assets and cash reserves? @mcuban appears to be one of the only ones with any morals. He's done nothing but offer real help and advice right from the start.
@British_Airways is another who said the last place they'd go is to the government for money, they feel it's wrong. THAT is the difference for me, IF a company - or its shareholders has or have assets, and/or cash reserves, they shouldn't get to go to the taxpayer for a bailout.
If I ever hear another US airline complain about middle eastern airlines getting 'unfair' government subsidies, I'll lose my mind. The US airlines have received over $20 billion from the US tax payer despite having cash reserves, assets, and shareholders. It's insane.
I am sad to say I don't trust the @SBAgov, they didn't think this through, & the system they set up, to help small businesses, is being abused by big businesses as a result, and they are doing nothing to stop it. That's a disgrace, and our 'leaders' should all be ashamed.
I don't trust the big banks because they'll always look after the big guys, no matter what, because banks ARE the big guys. We were #3300 and something in line, but funds ran out apparently before they processed ours. Not sure how that's possible but @BankofAmerica said it is.
It feels like most big banks looked after their golf pals first, the big accounts. I don't know if that's true, but the stats sure seem to point to that don't they? And they sure as hell didn't look after the small clients who did everything right.
So, am I bitter? A little. Angry? For sure. Will it stop me? No. Because that is what small businesses do every day in the world, we keep going despite nobody really looking out for us, even when we pay them to. Sorry for the rant, actually no, I'm not, I feel much better. #PPP
You can follow @WayneScholes.
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