The Real Problem with the Covid Disaster Loans

Ami Kassar says lots of businesses were handed far more money than they could have borrowed conventionally—even though they had to plan for how to spend it.

Good Morning!

Here are today’s highlights:    

• More companies are trying to get the most out of rising payroll costs by making a part of workers’ pay contingent on completing prescribed goal

• A family-owned manufacturer of apparel is thriving in New York City.

• Last year, apparel resale in the United States grew seven times the rate of the broader retail industry.

• In Google’s antitrust fight over online advertising tools, some small businesses are siding with the search giant.

THE 21 HATS PODCAST: DASHBOARD

‘This Is Not Going to End Well:’ This week, Ami Kassar, founder and CEO MultiFunding, explains how it’s almost as if these past few years we’ve run a grand experiment to see what would happen if the government gave lots of business owners more money than they knew what to do with. In many cases, the businesses got far bigger Covid loans than they could have hoped to borrow conventionally, and they got them without having to go through the standard application process. In other words, they got the money without having to develop a plan for how they would use it. And now they have to pay it back.

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