>>> AS RACHEL AND I WERE DID DISCUSSING, THE HOUSE OF
REPRESENTATIVES WILL VOTE ON A
BILLION THAT PROVIDES BILLIONS
MORE ON FUNDING FOR SMALL
BUSINESS AFTER THAT PROGRAM RAN
OUT OF MONEY LAST WEEK BUT ONE
SMALL BUSINESS OWNER THAT
RECEIVED AID THROUGH THAT
PROGRAM IS WARNING ABOUT HOW
EASY IT IS FOR COMPANIES TO
EXPLOIT THAT PROGRAM.
IN AN OP ED, PETE VEGAS THAT OWN
AS FOOD MANUFACTURING BUSINESS
WITH 200 EMPLOYEES DETAILS HOW
THE TERMS TO QUALIFY FOR A LOAN
AMOUNT TO WHAT HE CALLS
LEGALIZED FRAUD.
LEGALIZED FRAUD. FROM WHAT I’M OBSERVED, THE
PAYCHECK PROTECTION PROGRAM IS
COMPLETELY FLAWED AND WILL
FUNCTION AS A HANDOUT TO
COMPANIES THAT DON’T NEED IT.
BILLIONS OF MISSPENT DOLLARS
WILL NEVER BE PAID BACK.
THIS PROGRAM CREATES, EVEN
ENCOURAGES CONDUCT THAT WOULD
NORMALLY BE CONSIDERED FRAUD.
JOINING OUR DISCUSSION IS PETE
VEGAS.
VEGAS. HE’S THE OWNER OF SAGE FIVE
FOODS IN BOULDER, COLORADO.
MR. VEGAS, THANK YOU VERY MUCH
FOR JOINING US TONIGHT.
TELL US ABOUT HOW EASY IT WAS
FOR YOU TO GET THIS MONEY AND
DID YOU HAVE QUALMS ABOUT IT
WHEN YOU REALIZED AS YOU LOOKED
AT IT AND HAD THE FEELING
YOURSELF THAT YOU DIDN’T DESERVE
IT?
IT? >> YOU KNOW, I WAS NOTIFIED ON
FRIDAY THAT WE HAD BEEN APPROVED
FOR THE LOAN.
IED A ED AHAD TWO DAYS TO DECIDE
TO TAKE IT OR NOT.
I SPENT THE WEEKEND CONCERNED
ABOUT WHETHER I SHOULD TAKE THE
MONEY OR NOT.
THE ISSUE BEING THAT IF I DIDN’T
TAKE THE MONEY AND MY PLANT SHUT
DOWN A FEW DAYS LATER, AS YOU’RE
NOW SEEING WITH A LOT OF FOOD
PLANTS, I COULD HAVE 200
EMPLOYEES OUT OF WORK JUST LIKE
EVERYONE ELSE.
EVERYONE ELSE. SO I TOOK THE LOAN.
THERE’S A STATEMENT IN THE LOAN
THAT’S VERY VAGUE IN THE LOAN
APPLICATION THAT -- AND IT’S
REALLY THE ON ONE YOU HAVE TO
SIGN OFF ON.
IT SAYS CURRENT ECONOMIC
UNCERTAINTY MAKES THE LOAN
REQUEST NECESSARY TO SUPPORT THE
ON GOING OPERATIONS OF THE
APPLICANT.
APPLICANT. SO, YOU KNOW, THAT’S A VERY
VAGUE BROAD STATEMENT.
IN MY CASE, YOU KNOW, THERE’S
CLEARLY UNCERTAINTY.
CLEARLY UNCERTAINTY. THERE ARE MANY REASONS THAT MY
PLANT COULD GO DOWN.
YOU KNOW, THE VIRUS COULD RUN
THROUGH THE PLANT.
I COULD HAVE SUPPLY PROBLEMS.
YOU KNOW, IT’S JUST MANY -- MY
MARKETS COULD GO BAD.
I LOST A LOT OF MY MARKETS THAT
GO INTO THE RESTAURANT CHAIN
THAT WHAT WE CALL THE FOOD
SERVICE BUSINESS.
SERVICE BUSINESS. SO I APPLIED FOR THE LOAN.
IT LER
IT LER I LITERALLY HAD A DAY TO DECIDE.
I TOOK THE LOAN.
THE REAL ISSUE IS NOT SO MUCH
THAT YOU TAKE THE LOAN.
THE REAL ISSUE IT IS HOW EASY IT
IS TO HAVE THE LOAN FORGIVEN.
ONCE YOU RECEIVE THE LOAN THERE
IS NO REQUIREMENT TO PAY IT BACK
AND THAT’S WHAT I’M TRYING TO
BRING TO PEOPLE AS’S ATTENTION,
THIS IS SOMETHING THAT NEEDS TO
BE CORRECTED.
BE CORRECTED. >> YOU MAKE THE POINT IN THE
ARTICLE AS OF THE TIME YOU WERE
APPLYING FOR THE LOAN, YOUR
BUSINESS WAS ACTUALLY DOING VERY
WELL AND IT HADN’T REALLY
SUFFERED AT ALL.
NOTHING REALLY TO -- THAT THE
LOAN NO LOSSES THAT THE LOAN WAS
GOING TO REPLACE OR HELP YOU
WITH.
WITH. AND SO I’VE ACTUALLY STUDIED THE
REQUIREMENTS FOR THIS, TOO,
BECAUSE I’VE BEEN SHOCKED WHO
QUALIFIES FOR IT, HOW EASY IT IS
TO QUALIFY FOR IT AND THAT ISSUE
THAT YOU REFERRED TO ON THE PAY
BACK, IT’S VERY CLEAR THAT THE
WAY THIS IS WRITTEN, MOST
RECIPIENTS ARE NEVER GOING TO
HAVE TO EVEN BE REQUIRED TO PAY
BACK THESE SO-CALLED LOANS.
THESE ARE REALLY GIFTS.
>> YOU KNOW, THAT’S CORRECT.
ONCE YOU HAVE THE LOAN, IF YOU
BASICALLY PAY 75% OF THE MONEY
TO PAY FOR EMPLOYEES, IF YOU
HAVE THE SAME NUMBER OF
EMPLOYEES STILL WORKING EIGHT
WEEKS LATER AT THE SAME SALARY
LEVELS, YOU’RE ENTITLED TO HAVE
THE LOAN FORGIVEN EVEN THOUGH
YOU COULD POTENTIALLY HAVE MADE
MONEY DURING THAT WHOLE TIME AND
NEVER SUFFERED ANY PROBLEMS.
SO IT’S BASICALLY A GIVE AWAY TO