Round Two of the “Paycheck Protection Program”: Another Disaster for US Small Businesses and Their Employees – Global Research


29-04-20 07:49:00,

The launch Monday morning of the second round of the US “small business” Paycheck Protection Program (PPP) was a debacle. Millions of family-owned entities, desperate for credit and tottering on the brink of permanent closure, were once again shut out from applying for, let alone receiving, government-backed forgivable loans.

As soon as the $310 billion program administered by the Small Business Administration (SBA) began taking loan applications at 10:30 am, its computer system, overwhelmed by the volume of requests, crashed.

Cynthia Blankenship, vice chair of Texas-based lender Bank of the West, told the Financial Times, “First the page would not load, and then it just showed us an error message.” The problems continued throughout the day. Blankenship said her bank was able to process only 15 applications.

TAB Bank in Ogden, Utah had prepared loan applications from 1,100 customers. Five hours after the start on Monday, the bank had gotten only seven loans processed.

The Washington Post quoted Paul Merski of the Independent Community Bankers of America as saying, “All of the reports I have around the country is that it’s been a disaster.”

The big Wall Street banks, which are making a killing off of the government loan program, having taken in $10 billion in fees in the first round, had warned the Treasury Department and the SBA that they had to prepare for a massive flood of loan requests, but nothing was done to avoid the logjam. The SBA said later on Monday that there were double the number of users accessing the system than one any day during the initial round of the program.

The banks have warned, moreover, that the $310 billion allotted for the restart of the program will likely be exhausted in less than a week.

The abortive start of the second round of the program immediately demonstrated that, like the first installment, part of the $2.2 trillion corporate bailout enacted in March, the vast majority of small businesses and their employees will receive little or nothing in relief from the economic collapse triggered by the coronavirus outbreak.

Big businesses were given top priority by the Wall Street banks administering program until the first allotment of funds ran out in less than two weeks.

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78% Of Americans Live Paycheck To Paycheck (Including Many Government Workers Affected By The Shutdown)


10-01-19 04:22:00,

Authored by Michael Snyder via The Economic Collapse blog,

In just a few days, this will officially be the longest government shutdown in U.S. history, and there is no end in sight. 

President Trump is pledging that he will not sign any spending bill unless it includes funding for a border wall, and the Democrats are promising their supporters that they will never agree to a single penny for a wall.  This could be the confrontation that ends up defining Trump’s presidency, and whoever backs down now is going to look incredibly weak. 

But the longer this shutdown lasts, the more painful things are going to become for the hundreds of thousands of federal workers that are going without pay, and for the hundreds of thousands of workers that are employed by government contractors that rely on business from the federal government.

You should never play a game of chicken with somebody that is crazier than you are.  In this case, it looks like both sides fully expect the other party to blink first, but the truth is that neither side is likely to yield any time soon.

So the days ahead are likely to be exceedingly painful for most federal workers, because just like the population as a whole, most of them are living paycheck to paycheck.

In fact, one survey found that 78 percent of American workers are currently living paycheck to paycheck…

Government workers are far from alone in feeling stressed about not getting paid. Nearly 80 percent of American workers (78 percent) say they’re living paycheck to paycheck, according to a 2017 report by employment website CareerBuilder. Women are particularly vulnerable: 81 percent of them report living paycheck to paycheck, compared with 75 percent of men.

As I have repeatedly stressed, living paycheck to paycheck is something that you do not want to do if at all possible.  When you live paycheck to paycheck, you are just one major disaster away from financial ruin.  For example, if somebody in your family has a major accident or a significant medical emergency,

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