Tens of millions of lost jobs, the largest trade deficits in history, the sharpest GDP decline in modern American history–and yet business applications are booming. The figures are staggering:
Nationwide, business applications are up over 82% from the same time last year, with every single state recording double-(or triple-)digit percentage increases. Seems a little strange, doesn’t it? A refresher on the Paycheck Protection Program from the Treasury Department clears up the confusion:
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible.
The entrepreneurial spirit is alive and well in the enterprising mob bosses, er, citizens who filed the necessary paperwork yesterday to be eligible for the next round of government grants just around the corner. The correlation at the state level between the percentage of the population that is black and the percentage increase in business creation compared to the same quarter last year is a strikingly robust .85, putting to rest the lie that Donald Trump hasn’t done anything for black people–or at least for their racist neighbors!