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Tuesday, July 21, 2020

Congress failed the mom and pops

Congress passed the CARES Act and PPP to help small businesses. Then they made the rules so that small businesses could not take advantage of the offer.

Harvard Business School talked to restaurant owners, something Congress apparently did not do.

The school said, "Our panelists expressed frustration with government aid programs, such as the US CARES Act and its Paycheck Protection Program (PPP) enacted in late March. Although designed to help small businesses with forgivable loans to encourage keeping employees on the payroll, the program disappointingly failed to address needs unique to the restaurant industry.

"For example, eligibility for full loan forgiveness was predicated on using loan proceeds for an eight-week period ending June 30 with maintenance of both wage levels and the number of employees at the same level as the comparable 2019 period. Moreover, 75% of loan proceeds were required to be used for payroll, at odds with an industry norm of payroll expenses totaling approximately 30% of revenue. As of mid-May, restaurants that were open had reduced staffing for takeout and delivery only and the prospects for returning to full employment by June 30 were dim given the constraints imposed by capacity caps."

So, the restaurant must keep 100% of the staff on the payroll at a time when business is off by 65%, according to the National Restaurant Association. Results may vary from state to state, but I am pretty sure even in enlightened places such as South Dakota, which did not shutdown in a pandemic panic, business is down.

The government did this with its quick shutdowns followed by slow-rolled re-openings followed by sudden closures again.

Then in the name of bailing them out, the government made it impossible to take advantage of the bailout. The money went to rock 'n' roll millionaires instead.

Harvard reported, "What we heard was that the restaurant industry was in deep economic trouble and that ill-conceived government bailout plans were not helping to shore it up. However, we also heard that restaurateurs remained steadfastly committed to their goal of nurturing and nourishing people, providing a place of succor and community in a strange new world."

Mom and pop restaurants suffer.

As do others.

Harvard reported, "Second-order effects of restaurant closures ripple through the American economy, bringing economic pain to farmers, fishermen, foragers, ranchers, manufacturers, and other producers who supply the industry. Equally hit are supply chain partners who move goods across the country."

Industry upon industry suffers.

Restaurant chains will survive. They have lines of credit and reserves. Most of them can switch to takeout easily, as most of them had takeout before the pandemic panic.

Most family-run restaurants need a miracle.

The answer is to re-open indoor dining. If the press and Democrats say President Donald John Trump can issue a federal mask mandate, then he should be able to issue a federal restaurants are open mandate.

Combine the two.

The public will decide whether it wants to dine indoors again.

Hat tip: Instapundit.


  1. 'Congress failed the mom and pops'

    That was a Pelosi feature, not a bug. It was all designed to be a money launder scheme for Leftist front groups to receive hundreds of billions of tax dollars. Those dollars then oozed to the Democrats' black shirt shock troops in their mission of burn, loot, murder, and media demonization of all things Trump.

    Hate is cheap, but funding its terrorism is expensive.

  2. Brought to you by your friendly neighborhood Chamber of Communism, I mean Commerce.

  3. Deplorable behind the lines in CalifJuly 21, 2020 at 3:15 PM

    I agree small and independent restaurants desperately need help, but please, no federal mask mandate. In addition to the further erosion of states' rights and federalism, a mandate at the federal level will NEVER go away. They will extend it for annual flu and anything else they can dream up. "The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by an endless series of hobgoblins, most of them imaginary." - H.L. Mencken

  4. I can’t get your site off Google today. I think you got shadow banned.

    Ace as well.

    1. I saw on Twitter that a lot of conservative sites including Breitbart couldn't be found on Google search; when I tried, I got Breitbart just fine, so maybe that was a glitch-

      Or a tryout, to see how it worked so they can do it closer to the election. I know what I'm betting!

      That's part of the reason I use DuckDuckGo. The other reason is, I try not to give Google any more of my data than I can, and the Duck doesn't track me!

    2. So they say but there was information released that said that was not so. You need more than DuckDuckGo to protect your searches.

  5. Harvard. A left leaning institution that is all for the overthrow of the Legitimate U.S. Government. Check out their new Diversity & Inclusion Rules.
    It is all affirmative action meaning not based on merit but on skin color.Another traitor to the Republic.

  6. Democrats and RINO's hate any kind of independent enterprise. They're not big enough to "pay to play" so they're shunned.

  7. he should be able to issue a federal restaurants are open mandate.

    Presidents don't make laws! Any mandate by the executive branch of fed or state is not law.

    Most Americans comply proving they are sheep to be sheared. Shame on any of you who want a president or governor to issue mandates as law.

    Its unAmerican and unpatriotic to even suggest it.

    1. So we should just go along what the judges say what their interpretation is of the law?

    2. You need to do Critical Thinking not off the cuff of reactive responses. That is what the MSM is aiming you to do.

    3. BTW. If you were raised in a government public school in the last 30 yeas you were never purposely taught what Critical Thinking means. It will mean what you will be the rest of your life or that you will rise above your beginnings.

  8. they made the rules so that small businesses could not take advantage of the offer

    Of course they did its what they do. Virtually all of the regulations spewing from the swamp are written by big business so small business cannot compete with them.

    That's what regulating commerce is all about. Who do you think wrote the laws regulating social media? It wasn't Congress that's for sure they don't even read the bills they pass!

    What Makes You Think We Read The Bills? That's the name of the book by former Senator Richardson the founder of Gun Owners of America.

  9. Yeah, the Eagles took the PPP and then blocked a vid by my man Rick Beato on YouTube for using eight fooking seconds of one of their songs. FOOK DON HENLEY. Child raping son of a bitch.