I am not commenting on whether or not they should have been. I am not interested in tying them back to discussion of any other loans or loan forgiveness.
Why call them loans if they are not?
In: Economics
They reverted to loans if a business didn’t keep to the terms.
A friend of mine has a restaurant. When COVID hit they were closed for an extended amount of time.
His choices were to fire everyone and hope whenever he could open back up, he could get staff to return….or he could take the PPP loan.
As long as a certain percentage of staff were kept and not fired, the loan would be forgiven.
It benefitted the government because had businesses fired all their staff, unemployment and Medicaid would have been overwhelmed. Also, those not fired employees were still paying taxes and jobs they could easily go back to.
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