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Holy unintended incentivequences batman “If the recipient does not use at least 60% of the money on payroll, [it] becomes a loan with an interest rate of only 1% — much cheaper than a traditional Small Business Administration loan, whose interest rate can range from 5.5% to 8%.”
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Their company got a PPP loan. So why are they still unemployed? latimes.com/business/story
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So, you get a free loan which gets a tiny bit freeer if you don't fire your employees? No wonder big businesses gobbled it all up.
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No, a very cheap loan that becomes an outright grant if you don’t lay-off. It’s not 1% vs 0%, it’s 1% vs free money. The catch is, you’re just passing through to employees and not able to build up capital assets with it like equipment.
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