Here’s what is stopping Congress from forgiving PPP Loans

On August 24th, two Senators introduced a bill that would automatically forgive all PPP Loans under $150,000. This bill would cover about 4.2 Million of the 5.2 Million loans that were granted under the program.
But that same day, news broke about Jim Baker’s religious ministry in Missouri receiving approval for a PPP Loan somewhere around $1M. Weeks before, The Missouri Attorney General had filed a complaint against The Jim Baker Show stating that it was engaged in deceptive practices suggesting that a health product promoted on the show would cure C-19. Soon thereafter The FDA, The Federal Trade Commission, and The New York Attorney General also issued cease and desist letters.
Herein lies the problem.
Many Capital Hill Observers are stating that SBA Leaders are concerned that blanket forgiveness would release too many people who have misused the funds from being held accountable. Almost daily, another news story comes out where someone used their loan proceeds to buy houses, luxury cars, or boats.
As such, the concerns that many have in issuing blanket forgiveness are real.
Let’s also realize some of the outright fraud which has occurred as a result of this much needed program. We continue to hear about criminals who are using the proceeds to finance nefarious activities. There are also a lot of people who received large loans and just left the country. Given the fact that the loans were not personally guaranteed, I have no idea what the SBA’s remedy will be for those situations.
From a political standpoint, I just can’t see how any member of Congress would be able to support blanket forgiveness given what is now coming out in the media. If they did, they might be committing political suicide.
For those of you who were hoping to not be forced to put together all of the documentation necessary to get forgiveness of the loan, I would suggest that you get to work. If you need help in putting it all together, please give us a call.
Let me leave you with this one thought…
It’s Friday. It’s been an incredibly long week. Let’s you and I take a little trip.
The warm and azure Caribean envelops you as you leap from the back of the dive boat. After making sure that your equipment is fine, you touch your hand to your head, signalling the Captain that you are okay. You inflate your Buoyancy Control Device and roll over onto your back as the rest of the divers enter the water. When all are ready, you deflate the BCD, and begin your descent.
You are immediately deprived of most of your senses. You can see, but only straight ahead. Your peripheral vision is gone given the mask. You can hear, but only the sound that your regulator makes as you breathe in and out. You cannot smell. As you descend to the reef, you must equalize the pressure in your ears every ten feet or so.
And then you’re there. You’re down about eighty feet on a coral reef.
An explosion of colors leaps into your brain. The yellow, orange, red, and blue corals explode into your consciousness. Fan-like protrusions wave in the underwater currents as smaller hills of coral give way to the rocky valleys in between.
You begin to realize that you are truly in a different world.
A world where small colonies of lobster live in indentations of rock formations. Angel Fish dart in and out of the coral as a Barracuda floats menacingly by. Flounder hide in coral arrangements as Sea Turtles stare at you in amazement.
You allow the underwater currents to move you across the reef in order to preserve your air. You float as if you were in space. A smaller Manta Ray sails above you on its wings as you realize just how small and insignificant you really are.
For in this world you are not a master. You have no control. You are completely out of your element. You must control your fear, not knowing exactly what lurks behind the next rock formation that might see you as a tasty morsel.
And all too quickly it ends.
You begin your ascent and do a safety stop to expel any excess nitrogen. The Dive Master releases an inflatable buoy so that the Boat Captain knows where to pick you up. And then you are back on the surface, in a reality that you know all too well…

Diving Cozumel

Posted by Chris Amundson on Wednesday, August 19, 2020

Enjoy your weekend my Brothers and Sisters. Get some rest.
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Sincerely yours,
Chris Amundson
Accounting Solutions Ltd.
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