BUT YOU HAVEN’T BEEN DOING >>> BUSINESS BEFORE THE BELL
SMON SORT
SMON SORT RESPOND BEFORED BY TD
AMERITRADE.
AMERITRADE. >> THE CORONAVIRUS FUNDING PLAN.
THE PAYCHECK PROTECTION PROGRAM
HAS OFFICIALLY RUN OUT OF ITS
$349 BILLION WORTH OF CASH, AND
SMALL BUSINESSES CONTINUE TO
SUFFER.
SUFFER. THE SMALL BUSINESS ASSOCIATION
WEBSITE STATED YESTERDAY THAT IT
IS UNABLE TO ACCEPT NEW
APPLICATIONS FOR THE PAYCHECK
PROTECTION PROGRAM BASED ON
AVAILABLE APPROPRIATIONS
AVAILABLE APPROPRIATIONS FUNDING.
FUNDING. SIMILARLY, WE ARE UNABLE TO
ENROLL NEW PPP LENDERS AT THIS
TIME.
TIME. CONGRESS IS TRYING TO ADD AN
ADDITIONAL $250 BILLION TO THE
PROGRAMS, BUT DEMOCRATS AND
REPUBLICANS HAVE BEEN STUCK IN
NEGOTIATIONS.
NEGOTIATIONS. DEMOCRATS ARE LOOKING TO EXPAND
LOAN ACCESS TO INCLUDE MONEY FOR
HOSPITALS, FOOD ASSISTANCE, AND
STATE AND LOCAL GOVERNMENTS,
WHILE REPUBLICANS ARE HOPING TO
FOCUS ON SECURING MORE SMALL
BUSINESS AID WHILE DEFERRING
OTHER FUNDING DEBATES UNTIL
LATER.
LATER. LET’S BRING NBC NEWS SENIOR
BUSINESS CORRESPONDENT AND MSNBC
ANCHOR, STEPHANIE RUHLE, INTO
THE CONVERSATION.
THE CONVERSATION. STEPHANIE, THE BIG CONCERN HERE
IS ABUSE, BUT ALSO MONEY REALLY
GETTING TO PEOPLE WHO NEED IT.
>> ABSOLUTELY.
>> ABSOLUTELY. SO WE CAN TAKE POLITICS OUT FOR
AN ASIDE.
AN ASIDE. HERE’S WHERE I WANT TO WALK US
THROUGH THIS.
THROUGH THIS. IN NORMAL TIMES, IT MAKES SENSE
TO SORT OF OPTIMIZE YOUR TAX
DEDUCTIONS.
DEDUCTIONS. IF YOU RUN A SMALL BUSINESS,
YOU’RE GOING TO BRING YOUR
ACCOUNTANT IN, YOUR LAWYER, AND
SAY, "WHAT ARE ALL THE DEDUCTION
DEDUCTIONS AVAILABLE TO ME, AND
HOW DO I PAY THE LEAST?"
THAT’S HOW PEOPLE OPERATE.
HERE WE ARE RIGHT NOW, AT A TIME
WHEN THERE’S EMERGENCY FUNDING,
WHERE YOU SHOULD BE TAKING THE
FUNDING THAT YOU NEED, NOT
WHAT’S AVAILABLE TO YOU.
IF YOU AND JOE DECIDED, OH,
THERE’S A FOOD BANK 5 MILES AWAY
FROM WHERE WE LIVE.
SHOULD WE HEAD OVER THERE
TONIGHT AND GET THE FREE DINNERS
RATHER THAN GO TO THE GROCERY
STORE?
STORE? NO, YOU’RE NOT GOING TO DO THAT
AND TAKE FREE FOOD FROM A FOOD
BANK JUST BECAUSE YOU GUYS CAN.
THAT’S EXACTLY WHAT’S HAPPENING
HERE.
HERE. REMEMBER WHY THIS PROGRAM WAS
PUT IN PLACE.
BECAUSE OF ALL THE SMALL
BUSINESSES THAT ARE FORCED TO
SHUT DOWN.
SHUT DOWN. THEN PICK A NAIL SALON.
FORCED TO SHUT DOWN.
ALL THOSE NAIL TECHNICIANS WENT
ON UNEMPLOYMENT.
ON UNEMPLOYMENT. THEN THE GOVERNMENT REALIZED,
UH-OH, THOSE NAIL TECHNICIANS
ARE ON UNEMPLOYMENT.
NOW THE NAIL SALON COULD GO OUT
OF BUSINESS.
OF BUSINESS. WE DON’T WANT, ON THE OTHER SIDE
OF CORONA, THE BUSINESSES TO NOT
EXIST, THEN ALL THE PEOPLE WILL
SIT ON UNEMPLOYMENT FOREVER.
LET’S CREATE A PROGRAM WHERE,
BASICALLY, WE TAKE ALL OF THIS
MONEY, GIVE IT TO THESE
BUSINESSES THAT HAVE LOST
ENORMOUS AMOUNTS OF REVENUE.
THEY PASS THE MONEY ON TO THEIR
EMPLOYEES, SO THEY DON’T HAVE TO
FIRE THEM.
FIRE THEM. THEN THEY HAVE A LITTLE EXTRA TO
PAY OTHER EXPENSES.
THEN THEY’LL COAST THROUGH THIS.
THAT’S THE IDEA OF THIS.
GREAT IDEA.
GREAT IDEA. NOW, WHAT HAS HAPPENED IS, ANY
BUSINESS OUT THERE WITH LESS
THAN 500 PEOPLE HAS SAID TO
THEMSELVES, "WELL, IF IT’S
AVAILABLE TO ME, I GUESS I
SHOULD TAKE IT."
IF YOU WERE A LAW FIRM, YOU
DIDN’T NEED TO SHUT DOWN.
MAYBE YOU HAVE LESS THAN 500
PEOPLE.
PEOPLE. YES, THERE WAS SOMEWHAT OF AN
INCONVENIENCE.
INCONVENIENCE. MAYBE YOU LOST SOME MONEY.
IF YOU DID, YOU COULD TAKE AN
SBA, LOW INTEREST LOAN OUT, THAT
EVENTUALLY YOU’D PAY BACK.
TO SEE ALL OF THESE BUSINESSES,
AND REMEMBER, WE’RE GOING TO
HAVE ALL THEIR NAMES, SO I
PROMISE WHEN WE DO, WE’RE GOING
TO GO THROUGH THEM.
THE FACT THEY’RE TAKING THE
MONEY IS SO UPSETTING.
IT’S NOT GETTING TO THOSE NAIL
SALONS.
SALONS. >> RIGHT.
>> RIGHT. >> EXACTLY.
>> EXACTLY. >> WILLIE, THE "NEW YORK POST,"
ALONG WITH WHAT STEPHANIE WAS
TALKING ABOUT YESTERDAY, THE
POSSIBILITY OF ABUSE BY THE
RICH, JUST LIKE WE SAW IN 2008,
AFTER THAT CRASH.
THE RICH GOT RICHER.
THE BANKS MADE MORE MONEY THAN
EVER BEFORE.
EVER BEFORE. NOBODY GOT SENT TO JAIL.
THE "NEW YORK POST," 43,000 U.S.
MILLIONAIRES WILL GET STIMULUS,
$1.6 MILLION EACH FROM THE
CORONAVIRUS RELIEF ACT.
THAT IN THE "NEW YORK POST."
IT IS ABSOLUTELY OBSCENE.
>> YEAH.
>> YEAH. WHEN YOU HAVE PILES OF MONEY
THIS BIG, WHEN WE’RE TALKING IN
THE HUNDREDS OF BILLIONS, INTO
$2.2 TRILLION, THERE’S GOING TO
BE FRAUD.
BE FRAUD. THERE ARE SICK PEOPLE WHO ARE
GOING TO TAKE ADVANTAGE OF THAT.
YOU KNOW, STEPHANIE, I WAS
THINKING ABOUT ALL THESE SMALL
BUSINESSES.
BUSINESSES. I HAPPEN TO KNOW ONE VERY WELL,
THAT HASN’T EVEN HEARD BACK FROM
THEIR BANK YET.
THEY APPLIED FOR PPE AND HAVEN’T
HEARD BACK ON THEIR APPLICATION.
THEY’RE ONES APPLYING TODAY, AND
THEY’LL HEAR THERE’S NO MONEY
LEFT IN THE FUND.
THESE ARE SMALL BUSINESSES THAT,
EVEN IF THEY BET THE MONEY,
STEPH, AND YOU CAN HELP ME
THROUGH THIS A LITTLE BIT, IS IT
COVERS PAYROLL FOR TWO MONTHS,
PLUS 25% TO DEAL WITH RENT AND
UTILITIES, THINGS LIKE THAT.
THE QUESTION IS, EVEN IF YOU GET
THE MONEY, IF YOU’RE ONE OF THE
FEW THAT GET THE MONEY, WHAT
HAPPENS AFTER TWO MONTHS?
WE’RE LOOKING AT A HORIZON
THROUGH THE SUMMER, AND THE
MONEY RUNS OUT.
>> THAT’S THE BIG ISSUE.
THAT’S ACTUALLY WHY YOU’RE
SEEING QUITE A FEW RESTAURANTS
NOT APPLY FOR THE LOAN.
THEY KNOW THIS SINGTHING IS ONLY
MONTHS.
MONTHS. THEY DON’T WANT TO BE FACED TWO
MONTHS FROM NOW WITH EVERYTHING
SHUT DOWN, THEN THEY’LL FIRE THE
EMPLOYEES OVER AGAIN.
IF YOU’RE ONE OF THE BUSINESSES
THAT TOOK THE MONEY AND DIDN’T
NEED IT, BECAUSE YOU DON’T
ACTUALLY HAVE TO SHUT DOWN, THEN
AGAIN, THIS IS JUST A NICE
CUSHION.
CUSHION. YOU’VE GOT TO ASK YOURSELF, WHEN
YOU GO TO CVS RIGHT NOW, IF YOU
CAN BUY 50 ROLLS OF TOILET
PAPER, YOU’RE NOT.
WHEN YOU SEE THE PERSON WHO IS,
YOU’RE KIND OF PUBLICLY SHAKING
THEM.
THEM. WE’RE REALIZING, THAT’S NOT THE
RIGHT THING TO DO.
DON’T TAKE IT BECAUSE I CAN.
HERE, BUSINESSES THINK THEY CAN
DO IT IN THE DARK OF NIGHT.
NOBODY IS WATCHING.
I’M JUST GOING TO TAKE THE HAND
SANITIZER.
SANITIZER. TAKING ALL THE HAND SANITIZER
COULD BE KILLING PEOPLE’S
BUSINESSES.
BUSINESSES. >> STEPHANIE RUHLE, THANK YOU
VERY, VERY MUCH FOR COMING ON.
WE’LL SEE YOU AT 9:00 A.M.,
RIGHT AFTER "MORNING JOE."
>>> COMING UP, A MEAT PLANT IN
SOUTH DAKOTA IS THE COUNTRY’S
BIGGEST CORONAVIRUS HOT SPOT.