If you’re a small business owner, freelancer, solopreneur, or entrepreneur who has built a company that isn’t publicly traded, there is a chance you applied for Paycheck Protection Program (PPP) relief, a $349 billion program designed to benefit businesses that can’t obtain credit elsewhere or who are underbanked.
And you’re meekly asking around to see if you’re the only one who got the dreaded “we ran out of money” email from your local bank after you jumped through several hoops to apply into a black hole with no responses or returned phone calls.
The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act unanimously passed in the Senate on March 25, and signed by President Trump on March 27. The Act includes the PPP which gave Americans hope in the form of 2-year loans of up to $10 million for companies with under 500 employees, forgivable if applied to payroll, mortgage interest, rent, and/or utilities.
Meanwhile, over 40,000 Americans have died from COVID-19. It’s hard to be outraged under these conditions, but people are angry. Sure, some are violating stay-at-home orders to protest, but I don’t believe it’s simply because the economy is frozen, but because we were all given a false sense of hope. The PPP was thrown into choppy waters as a life preserver, but it was never intended for actual small businesses. The growing anger is from entrepreneurs and freelancers embarrassed to ask others if they’re the only ones to get rejected.
The truth is that most were rejected. And now carry that pit of fear in their stomachs, which is blossoming into anger. Sure, President Trump said that companies will have to “return” funds if they were “inappropriate,” given how many major institutions got funds, but that doesn’t help anyone today.
Politicians are nearing a deal on the second round of PPP, but small businesses are confiding in each other that they don’t believe they’ll receive help this time, either. With roughly 700K pending applications, and an estimated $310 billion which could become available in the second round of PPP, that rounds out to $442K per applicant, but will the cap remain in the millions, edging out smaller companies? Again?
There is a growing sense of dread and jadedness in this community that is becoming contagious as we compare notes (all of which look suspiciously similar).
If your local politician doesn’t understand how the entrepreneur community views them right now, show them this quick (but poor quality) clip from The Campaign:
You may think the growing outrage is because there are so many open mouths right now expecting the government to swoop in and feed them, but that’s not it. The rage is because once again, the little guy got screwed.
Under the PPP, Harvard University received $9 million, and responded to the public outrage by promising to apply funds to financial assistance to students. That’s neat, but what does that have to do with paycheck protection!? It’s literally in the name of the damn program. They have the largest endowment in the nation, sitting at a sweet $49.5 billion, so you can see how a copywriter in Dallas whose landlord is waiting to be able to file eviction is frustrated.
Under the PPP, according to recent Securities and Exchange Commission (SEC) filings, 71 publicly traded companies received emergency funding. SEVENTY. ONE. You can see how a 10-person graphic design firm in Nashville is frustrated.
Under the PPP, Ruth Chris Steak House (who has a $250 million valuation and 150 locations) received $20 million. They said in a statement that they applied so they can be “well positioned to emerge from this situation a strong and viable entity.” Are you effing kidding!? Please tell that to the day care operator in Kansas City who already laid everyone off and was told by politicians that the PPP was their lifeline. Strong and viable? Small businesses just want to stay open.
Under the PPP, Potbelly sandwich shops received $10 million despite having over 400 locations and an $89 million valuation. SEC filings also indicate that Kura Sushi USA received $6 million, Fiesta Restaurant Group (operating Taco Cabana and Pollo Tropical) snagged $10 million, and J. Alexander’s Holdings received $15 million for their 47 restaurants in 16 states.
Notice a trend here?
Shake Shack made a public splash by giving back the $10 million they received under the PPP, noting they had access to other funding, given that they have a $16 billion valuation, 7,600+ employees, 200 of whom were already laid off, and roughly 800 furloughed. The company explained that they applied because the CARES Act allowed any restaurant with under 500 employees per location to qualify.
Did you catch that? ALL RESTAURANTS WITH UNDER 500 EMPLOYEES PER LOCATION QUALIFIED. How many single restaurant locations do you know of that employs over 500 people?
Shake Shack accidentally explained why the first round of PPP failed. It was never designed for small businesses, and especially not for freelancers or gig workers as politicians had so optimistically promised.
Meanwhile, you have JPMorgan Chase bragging that they gave out more PPP funding than any other bank. Credit unions and small banks aren’t processing the same volume, and it is unclear as to whether the SBA is favoring large banks, large accounts at large banks, or if the little guys just took too long to figure out how to get help for their customers. But what is clear is that banks have gotten paid, as $6 billion was given to banks processing PPP funding. Did the SBA favor large companies, or did banks?
Either way, banks got paid billions. Smaller account holders did not.
Also frustrating, the Small Business Administration (SBA) refusing to be transparent about who the PPP recipients are, whereas SBA loans are typically public information (company names, executives, addresses, etc.) and they say only nominal amounts have funneled down to hospitality, in clear conflict with reality. Further, few have received aide under the SBA’s Economic Injury Disaster Loan (and grew frustrated at conflicting information ranging from large amounts available, to $10K grants, to maybe only $1K per employee).
It remains unclear who is screwing the little guy here – politicians, the SBA, banks, or all three simultaneously.
Small business owners Duncan and Rita MacDonald-Korth started a petition calling on the second round of PPP funding to be limited to companies with under 250 employees, and that half of all funding be reserved for those with under 50 employees. They call the first PPP round “flawed from top to bottom,” having done “very little to help genuine small businesses and instead has benefited large companies who have used subsidiary entities to benefit disproportionately and unfairly.”
Companies are banding together to sue Wells Fargo, Chase, and U.S. Bank claiming the banks “front-loaded applications for larger loans and focused on loans for $150,000 and under at the tail end of the program before it lapsed.”
Sure, you have companies like software company 75F in Minnnesota who have gained attention for publicly rejecting the help they applied for, but given the $18 million they raised in venture capital funding last year, solopreneurs are quietly reading that headline from home, wondering if they’ll ever be in line for help if companies like that qualified for PPP.
On Twitter, Senator Marco Rubio (R-FL), chairman of the committee overseeing small businesses, has softened over time, now saying that the PPP wasn’t designed to reach multiple subsidiaries of a national brand, and that “should be corrected.”
Should be corrected? You’re damn right.
There is growing fear which breeds anger, and actual small businesses are getting screwed, thinking they’re alone in their failure.
With the PPP’s lack of transparency and misallocation of funds to massive businesses, it is no wonder people are enraged. People are realizing they’re not the only one feeling betrayed by this false sense of hope, and we’re seeing entrepreneurs begin to compare notes. Trouble is brewing.
Study: Employers are inadvertently punishing women that suffer from Endo
(BUSINESS NEWS) A new study reveals the widespread impact of Endo (Endometriosis) in the workforce as well as the entire economy. Change must be made. Quickly.
Women still face many barriers in their career. It’s been more than half a century since federal law addressed gender discrimination in the workplace, but it still occurs. Whether it’s lack of access to training, an inability to speak up, or pay inequality, it’s all wrong. Sadly, a new study identifies another potential barrier to a woman’s career path – endometriosis.
What is endometriosis?
The Office on Women’s Health (OWH) reports that “endometriosis happens when tissue similar to the lining of the uterus (womb) grows outside the uterus.”
Endo, as its often called, causes varying levels of pain, often chronic pain in the lower back and pelvis. The tissue outside the uterus grows in areas where it can cause even more problems by blocking fallopian tubes and forming scar tissue. There is no cure, but there are some treatment options that can work.
Endo affects about 11% of American women who are ages 15 to 44. Despite the fact that the American Journal of Obstetrics & Gynecology describes endometriosis as “nothing short of a public health emergency,” data suggests that about 60% of endo cases go undiagnosed.
I repeat: 60% of endo cases go undiagnosed.
More than 6 million American women are living with the symptoms of endo without knowing the cause or having the capability to manage their symptoms.
Endometriosis was once considered a career woman’s disease, but a two-year-long study from Finland shows that the disease shapes a woman’s career, not the other way around.
Women with endo take 10 or more sick days than women without endo. They also use more disability days. Other studies support these findings. A 2011 analysis reported that women with endo could lose almost 11 hours of work each week because their endo made it difficult to complete tasks. One US study estimated that women with endo experience more sick days each year, up to 20.
These women often have a lower annual salary and slower salary growth.
How can employers address endometriosis in the workplace?
It’s difficult enough to discuss any type of health problem at work, let alone one that relates to menstruation. Employers have a big problem just dealing with short-term illnesses. It’s hard when a key employee is out for one or two weeks from a surgery. Long-term chronic illnesses, especially those that are invisible, are challenging in the workplace.
Most workplace cultures aren’t designed for people with chronic conditions or disabilities.
It’s going to take a major shift in thinking to deal with endometriosis in the workplace.
Endo isn’t painful period cramps. It’s a serious condition without a cure. Employees who are dealing with endo may be battling intense pain or fatigue. Yes, work needs to get done, but when people are living with a chronic condition, they need accommodations.
Endometriosis may be a woman’s disease, but it does impact the entire economy. One study found that endo had a similar economic burden to that of heart disease or diabetes. Most employers would not think twice about a man who needed extra time to deal with coronary disease, but women often don’t get that consideration, regardless of the condition.
Women with endo aren’t incapable or shirking their duties. They may just need to deal with their pain to stay focused at work. Let’s drop the stigma and help accommodate women who deal with endo.
Everyone should have an interview escape plan
(BUSINESS NEWS) A job interview should be a place to ask about qualifications but sometimes things can go south – here’s how to escape when they do.
“So, why did you move from Utah to Austin?” the interviewer asked over the phone.
The question felt a little out of place in the job interview, but I gave my standard answer about wanting a fresh scene. I’d just graduated college and was looking to break into the Austin market. But the interviewer wasn’t done.
“But why Austin?” he insisted, “There can’t be that many Mormons here.”
My stomach curled. This was a job interview – I’d expected to discuss my qualifications for the position and express my interest in the company. Instead, I began to answer more and more invasive questions about my personal life and religion. The whole ordeal left me very uncomfortable, but because I was young and desperate, I put up with it. In fact, I even went back for a second interview!
At the time, I thought I had to put up with that sort of treatment. Only recently have I realized that the interview was extremely unprofessional and it wasn’t something I should have felt obligated to endure.
And I’m not the only one with a bad interview story. Slate ran an article sharing others’ terrible experiences, which ranged from having their purse inspected to being trapped in a 45 minute presentation! No doubt, this is just the tip of the iceberg when it comes to mistreatment by potential employers.
So, why do we put up with it?
Well, sometimes people just don’t know better. Maybe, like I was, they’re young or inexperienced. In these cases, these sorts of situations seem like they could just be the norm. There’s also the obvious power dynamic: you might need a job, but the potential employers probably don’t need you.
While there might be times you have to grit your teeth and bear it, it’s also worth remembering that a bad interview scenario often means bad working conditions later on down the line. After all, if your employers don’t respect you during the interview stage, it’s likely the disrespect will continue when you’re hired.
Once you’ve identified an interview is bad news, though, how do you walk out? Politely. As tempting as it is to make a scene, you probably don’t want to go burning bridges. Instead, excuse yourself by thanking your interviewers, wishing them well and asserting that you have realized the business wouldn’t be a good fit.
Your time, as well as your comfort, are important! If your gut is telling you something is wrong, it probably is. It isn’t easy, but if a job interview is crossing the line, you’re well within your rights to leave. Better to cut your losses early.
How to keep Pride month going year-round (without rainbow washing)
(BUSINESS NEWS) Pride month is over and companies have deleted their rainbow website adornments. Without much effort, your company can easily keep the commitment to kindness going – here’s how.
Pride month in the US is behind us now and already the rainbows have faded from mega-corporate logos and branding. Making a constant commitment to inclusivity and anti-discrimination isn’t always easy and marketing has minefields aplenty.
So how does a small business navigate this? We’re starting from a deficit of trust and there are a few reasons why.
The large scale, mega-corporate marketing and PR targeted at the LGBTQIA+ community that goes on in June for Pride month, collectively referred to as “rainbow washing” (or sometimes even less flattering pandering accusations), has come under fire for being largely lip service and sometimes downright harmful by community advocates.
For example, one independent journalist just penned an editorial, putting AT&T on blast for publicly supporting LGBTQIA+ causes while funding political initiatives that negatively impact the community. I’d consider this a prime example of what not to do.
Businesses who want to be genuine in their commitment to pride have plenty of options that don’t require vast marketing or PR budgets.
Pride is ultimately about celebrating progress and obstacles surmounted by the community and highlighting the work needed to promote equality for everyone, regardless of identity or orientation.
The first thing any business can do is reflect internally. Address any dirty laundry that might be kicked behind the couch in the corner.
Try asking these questions:
- Are our policies gender neutral?
- Do any job titles involve gendered terms?
- Is the language in morality clauses modern?
- How do your benefits packages handle LGBTQIA+ health issues?
The other thing businesses can do, even if you are a business of just one person, is be an active member of your community.
Below are a few accessible, actionable suggestions on how to promote a welcoming and inclusive world:
- Listen – Be informed about what goes on in your locale. Sometimes just being aware is more than half the battle.
- Speak – if there is something going on in your community that you have a strong opinion on, speak up. Twitter is popular these days. Few things are more impactful than a call to city hall or the commerce department from a local business owner. You have more power than you probably realize. And yes, it IS good for business because it builds trust and loyalty within your customer base. Good things happen to those who make an effort to do the right thing.
- Ask Questions – Nothing beats good old honesty and accountability. Colleagues, customers, and the community at large will respect you more if you are willing to open a dialog. This can be individual conversations, or a short survey in a newsletter or social media post. This builds trust and gives you an opportunity to serve as a role model for others.
- Back Local Events – Get your name and logo out there. I know this one feels inaccessible to smaller businesses, but hear me out. Obviously, organisations running events like financial or in-kind contributions. If you can do that, great! A lot of organisations struggle with finding safe meeting spaces- can you unlock the office for 2 hours one evening after work one night a month? Something as simple as volunteering your parking lot for some extra space or putting a banner on your webpage for a week makes a big difference too. Push their events on your socials. Can I borrow your printer?
At the end of the day, every day, everyone just wants to be treated equally, with kindness and compassion.
Last I checked, those are two things we haven’t put a commercial price tag on yet. So, above all else, be kind. It’s amazing how far that can get you.
Business Marketing2 weeks ago
What skills do marketers need to survive the AI takeover?
Business Marketing1 week ago
Coworkers are not your ‘family’ [unpopular opinion]
Business News5 days ago
Everyone should have an interview escape plan
Opinion Editorials1 day ago
How strong leaders use times of crises to improve their company’s future
Business Finance1 week ago
Is the convenience of payment apps worth the risk of fraud?
Business Marketing2 weeks ago
These tools customize your Zoom calls with your company’s branding
Business Entrepreneur1 week ago
Why and how to acquire a business – 4 tips for radical success
Tech Gadgets1 day ago
Recording your smartphone’s screen is easier than you think