Friday Morning Briefing, Consider a Different Way of Funding Small Business…
At the onset of the debates and proposals for the stimulus packages, the C.A.R.E.S. Act, PPP & EIDL Loans one of my friends told me about the system some European countries use to support business in times of mandatory shutdowns.
It sounded pretty straight forward and she said it accomplished what most economists were saying we needed; a way for employees and businesses to continue paying their bills during the shutdown and be ready to come back to their job once the ban was lifted.
Basically they utilize a wage-subsidy program with direct payment to employees by the government. This bypasses the unemployment system and eliminates the stress, work and fees related to applying for loans and again for applying for loan forgiveness.
I invite you to click through to this morning’s Friday NYT briefing which also includes a link to an article “A Struggling Stimulus Program” by David Leonhardt which discusses the system other countries have used and are using to pay employees during pandemics and required business shutdowns now and in the past.
Wishing you, your family and friends health and safety through these trying times.