Small Businesses And Loans in the Coronavirus Pandemic
COVID-19 or Coronavirus, has gotten the world’s attention. But history is full of lessons.
The Great Recession was a reckless irresponsible lending problem. The Saving and Loan scandal of the 1980’s got Texas’s attention, and they were more prudent in lending before the Great Recession occurred.
Sad, but almost everyone I have talked to did not get a small business loan, or Payroll Protection Plan to help them. I only talked to professionals I know.
Good people with good businesses. No government or state aid as promised.
Some banks were swift and cited on the News such as Bank of America.
Chase, the largest bank did not know when it would be up. Next week they said their software would be ready. Untrue, was up that Friday and crashed. Those early birds with good relationships at the right banks got help. Ruth Chris Steakhouse with profits of $40 million received $20 million in Payroll Protection.
Interestingly, the President said they would be forgiven due to the Coronavirus pandemic. Weren’t steakhouses closed? Ruth Chris is a national chain. All takeout steaks? Paying all the employees to stay at home? USAA choice to pay down their debt, rather than provide money to veterans until someone complained, and it made National news.
Most of the largest banks are in NYC, the epicenter of the pandemic in the United States. Wells Fargo is San Francisco if memory serves me. They got reprimanded for taking out additional customer accounts and charging service fees without their knowledge. Hopefully, Wells Fargo did not make another mistake. The President said it was a huge success. The majority of small business owners I have polled were not fortunate, nor did they have a good experience, or view it as a success. Those with integrity are trying to keep the wheels on their company in this difficult time, that we did not create. Personally, closing the airports early, not having test kits, not heeding warnings, keeping the beaches open for Spring Breakers, and Mardi Gras was not a wise decision. The largest US city, New York with its notorious congestion of cabs, subways and airports, elevators and sheer lack of social distancing, of that city was obvious. It was foreseeable.
History Repeats Itself
The fact the United States did not have a Pandemic committee when President Obama dealt with another type of Coronavirus the H1N1 in 2009 and the Ebola virus in Africa in 2016 is truly sad. That the average US citizen is unaware of the FDA’s approval of an Ebola vaccine in December of 2019 is interesting, but I advise don’t worry Merck has the patent. President Obama, and surely, Former Vice President Biden, Dr. Fauci, and many others are aware. Let’s not discuss the Zaire strain. They know.
Both Presidents Bush and Obama warned of our vulnerability to a Pandemic. It is here now. Wreaking havoc with lives and the global economy. It will make history. It is always the little guy who loses. Sad but true. I have talked to friends with family in Spain and Italy, they are worried sick, yet the USA has more cases than any other country.
Let’s not let history repeat itself. The Spanish influenza of 1918-1920 was the H1N1 Coronavirus. It was during WWI. By the way, WWI did not stop. Lots of deaths occurred as a result of the war and the Pandemic. Of note, Spanish influenza did not originate in Spain. Spain was a neutral country, and the only one in Europe to report it. You see it was bad for troop morale as if things weren’t bad enough with the Great War. History does repeat itself unless we learn and solve it for the future. Misinformation is not a solution. The soldiers who died were not Politicians, or Big Bank CEO’s. Small businesses and the common man make this country strong, and the world strong. Let’s work together for a better future. Thanks, let’s do what is best for the group and the individual at the same time. John Nash’s Beautiful Mind won the Noble Prize for this idea. Let’s all help make the world a better place for everyone.
