Explaining how bank loans work

There are a lot of people, apparently, who don’t understand that when a business owner takes a loan, they are personally on the hook for that loan. And if there is a forgiveness feature, as is the case with the Payroll Protection Program, that forgiveness feature has to be applied for and approved. And if forgiveness is applied for and not approved, or if no forgiveness is applied for, then the individual who owns the company that took the loan is paying it back, just like anyone else with a mortgage, a credit card, a line of credit, etc.

So, like an idiot, I assumed everyone understood this and that people could read English before forming an opinion and running their mouths off. I also assumed that a business owner going into debt in order to keep their operations running smoothly and their people employed would be seen as heroic. It turns out that normal people that you interact with in the real world do, but misanthropes on the pseudonymous internet do not. It’s a really interesting phenomenon how far apart the real world and the web can be.

Anyway, the amazing Stephanie Ruhle had me on to explain the difference between a loan and a bailout, the difference between money businesses owe back to their lender versus forgiven money. I’ve been dealing with business owners my entire adult life, from all over the country and in every segment of the economy. I can’t imagine there is a single business owner in America right now who wouldn’t rather have the economy revived and pay their loans off rather than be forced to ask for forgiveness. People who start businesses have a dream. They hire people who they hope share that dream. They don’t want free shit from the government. They risk everything to bring that dream to life. And then there are people who spit on them at their most vulnerable moments. It’s disgusting.

Source:

Lawmakers look to reveal firms that got loans intended for small businesses (MSNBC)