Connect with us

Top News

Desperate small business. Can the $ 1 billion program help?



Desperate small business. Can the $ 1 billion program help?

After robbers hit the Hollywood restaurant Los Balcones del Peru in a wave of protests against police brutality on Saturday night, owner Jorge Rodriguez considers himself lucky enough to laugh at him.

“He took the most expensive wine we had and left,” Rodriguez said, adding that the man had left the restaurant untouched. “Looks like he has an appetite for red wine. He did not touch the white skin. “

Rodriguez maintains a dismal sense of humor even as he struggles to maintain his business with the help of life.

This restaurant is located on Vine Street, a few steps from ArcLight Cinemas. Like other businesses that cater to tourists, Los Balcones is beaten severely by COVID-19, a disease caused by coronavirus. “January is when we start getting all travelers from Asia and Europe,” Rodriguez said. “We never get that traffic.”

Reliable customers trickled in and out, but the number of employees dropped from 43 workers to seven. He was unable to open limited seating until early July. Restaurants receive the Paycheck Protection Program money from the federal government, but it will soon disappear, with the return of normal business a distant prospect.

Millions of small businesses in California and throughout the country are in the same trouble. Their livelihoods have been threatened by COVID-19 locking and scarcity of business traffic. Then, for many people, there comes a loss of income from curfews or damage due to looting .. Loans are hard to come by and the prices are very expensive.

Looking to provide a lifeline, the Bay Area group created in March launched an ambitious California program to raise $ 1 billion in capital to help healthy small-scale companies survive the next few months.

See also  A man who was shot in a Seattle CHOP claimed that he was a victim of 'racial crime'

Community lenders, law firms, universities, philanthropists, small business groups and volunteers have joined as California Small Business Task Force to raise funds to provide cash to maintain working capital and other important expenses until – everyone hopes – a better economy increases customer spending next year.

“We are trying to prevent or reduce the number of people in the line of bread,” said Susan Mac Cormac. A corporate lawyer and partner at the international law firm Morrison & Foerster, Mac Cormac helped come up with a task force plan, which he considered important to prevent a wave of poverty. “We cannot overcome the economic problems of COVID-19 and the murder of George Floyd without being able to provide jobs in [low-income] community, “he said. “And the only people who employ people in this community are micro businesses.”

In a March survey by the advocacy and education group Majority of Small Businesses, 44% of small business owners said they had to be closed forever without immediate financial assistance. Many receive loans that can be forgiven under the CARES Act passed by Congress. But big blob Federal emergency loans, money diverted to fast food chains, hotels and other companies that have large bank relations and resources to hire expensive lawyers, accountants and lobbyists.

“Federal and state funding does not reach the companies that need it most,” Mac Cormac said. “But the need is huge.”

The expected high default rate for small business recovery loans translates into interest rates “well above normal time,” said Adair Morse, a finance professor at UC Berkeley’s Haas School of Business. For the worst hit areas, he estimates tariffs “in the order of 25% to 30%, if not more.” So the loan program “must at least be subsidized in part by the government or philanthropy,” he said.

See also  Canada wants a national sick leave plan for a second wave of coronavirus pandemic

The California task force began primarily to offer advice to small businesses. Another early catalyst was Adam Werbach, environmentalist and entrepreneur in the Bay Area. “Everyone feels devastated by a pandemic, so we gather resources and skills to make ends meet.” Students at UC Berkeley law school set up a hotline. The task force creates, is well organized, comprehensive resource guide and post it online.

After deficiency in the federal aid program it became clear, Mac Cormac and his volunteer colleagues decided that advice was not enough. More access to low-interest loans is needed. Even more.

The federal salary protection program defines a company with up to 500 employees as “small.” The California program is for businesses with no more than 75 employees. Most recipients will have far less than that, organizers said. The $ 1 billion program, called the Small Business Rebuilding Fund, is basically a loan program, not a grant program.

Morse from Berkeley’s Haas School helped arrange the program. The main objective is to reduce the interest rates for small business owners to realistic levels while “eliminating the risk” of investment for those who are dealing with money.

That requires guarantees of government loans and leather lenders in the game. Applicable businesses must demonstrate that they will be “feasible” after a period of disparity. “By using limited taxpayers’ money, we need to do it in a way that maximizes the return to the economy, so that the current government debt supports economic growth,” Morse said.

California Governor Gavin Newsom has set aside $ 50 million for the seed program, with another $ 50 million in his budget for legislative approval. The loan program will help small businesses access these funds. This group lobbied Congress to add money to a small business loan program that funds could use. The California group also collects money from philanthropic organizations.

See also  Demi Lovato's house in Hollywood Hills sells for $ 8.25 million

Kiva, a San Francisco-based crowdfunded loan distributor for “no bank account” small businesses around the world, will manage the program. Loans will be collected, in Wall Street style, with collections assessed for risk rather than individual loans. Commercial lenders will be repaid first, final philanthropy. Some grants will be given to businesses that can demonstrate a strong business plan. Law firms including Morrison & Foerster and the Cooley Silicon Valley power station offer pro bono advice.

Mac Cormac said people from seven states have so far approached the California group to learn about the program and maybe create their own program.

It takes effort and cooperation, said Mark Herbert, California representative for Small Business Majority. If small businesses cannot get access to capital, and soon, “the effects of the ripple and economic devastation that will follow will be incalculable,” he said. “But I’m an optimist. I hope that policy makers and other leaders will do everything in their power to ensure we have the tools to prevent that from happening.”

A billion dollars is a lot of money, said restaurant owner Rodriguez. “But it’s a lot cheaper than letting all these businesses collapse.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top News

Portuguese historical films will premiere on 29 December.



Portuguese historical films will premiere on 29 December.

Method Media Bermuda will present the documentary FABRIC: Portuguese History in Bermuda on Thursday, December 29 at the Underwater Research Institute of Bermuda.

A spokesperson said: “Method Media is proud to bring Bermuda Fabric: Portugal History to Bermuda for its 5th and 6th showing at the Bermuda Underwater Observatory. In November and December 2019, Cloth: A Portuguese Story in Bermuda had four sold-out screenings. Now that Bermuda has reopened after the pandemic, it’s time to bring the film back for at least two screenings.

“There are tickets For $ 20 – sessions at 15:30 and 18:00. Both screenings will be followed by a short Q&A session.

Director and producer Milton Raboso says, “FABRIC is a definitive account of the Portuguese community in Bermuda and its 151 years of history, but it also places Bermuda, Acors and Portugal in the world history and the events that have fueled those 151 years.

“It took more than 10 years to implement FABRIC. The film was supported by the Minister of Culture, the Government of the Azores and private donors.

Bermuda Media Method [MMB] Created in 2011 by producer Milton Raposo. MMB has created content for a wide range of clients: Bermuda’s new hospital renovation, reinsurance, travel campaigns, international sports and more. MMB pays special attention to artistic, cultural and historical content.

More about

#History of Bermuda #A photo #Portuguese

Model: Everybody, Entertainment, Movies/Movies, History, News

See also  Respect, Portuguese and a language for everyone
Continue Reading

Top News






This is a fact or event of journalistic interest. This may be new or recent information. This also applies to the novelty of an already known situation.


Mostly original text. Expresses the opinion of the author, but not necessarily the opinion of the newspaper. It can be written by journalists or specialists from different fields.


A report that contains unknown facts or episodes with a pronounced denunciatory content. This requires special methods and resources.

Content commerce

Editorial content that offers the reader conditions for making purchases.


This is the interpretation of the news, taking into account information that goes beyond the facts told. It uses data, brings events and scenario forecasts, as well as past contexts.


Analytical text translating the official position of the vehicle in relation to the facts covered.


This is an institutional article on a topic of interest to the company sponsoring the report.

fact checking

Content that confirms the accuracy and authenticity of the disclosed information or facts.


This is an article that brings subsidies, historical data and relevant information to help understand a fact or news.


An exciting report that details the various aspects and developments of this topic. It brings data, statistics, historical context, as well as stories of characters that are affected by or directly related to the topic in question.


A text with detailed analysis and opinions on products, services and works of art in a wide variety of fields such as literature, music, film and visual arts.

Continue Reading

Top News

Maestro de Braga is the first Portuguese in the National Symphony Orchestra of Cuba.



Maestro de Braga is the first Portuguese in the National Symphony Orchestra of Cuba.

Maestro Filipe Cunha, Artistic Director of the Philharmonic Orchestra of Braga, has been invited to conduct the Cuban National Symphony Orchestra, as announced today.

According to a statement sent by O MINHO, “he will be the first Portuguese conductor to conduct this orchestra in its entire history.”

In addition to this orchestra, the maestro will also work with the Lyceo Mozarteum de la Habana Symphony Orchestra.

The concerts will take place on 4 and 12 March 2023 at the National Theater of Cuba in Havana.

In the words of the maestro, quoted in the statement, “these will be very beautiful concerts with difficult but very complex pieces” and therefore he feels “very motivated”.

From the very beginning, Rachmaninoff’s Piano Concerto No. 2 will be performed by an Italian pianist (Luigi Borzillo), whom the maestro wants to bring to Portugal later this year. In the same concert, Mendelshon’s First Symphony will be performed.

Then, at the second concert, in the company of the Mexican clarinetist Angel Zedillo, he will perform the Louis Sfora Concerto No. 2. In this concert, the maestro also conducts Tchaikovsky’s Fifth Symphony.

“This is an international recognition of my work. An invitation that I accept with humility and great responsibility. I was surprised to learn that I would be the first Portuguese member of the Cuban National Symphony Orchestra. This is a very great honor,” the maestro said in a statement.

“I take with me the name of the city of Braga and Portugal with all the responsibility that goes with it, and I hope to do a good job there, leaving a good image and putting on great concerts. These will be very special concerts because, in addition to performing pieces that I love, especially Rachmaninov and Tchaikovsky, I will be directing two wonderful soloists who are also my friends. It will be very beautiful,” concludes Filipe Cunha.

See also  The Yankees prospect, Mike King, could be on track in the list of places

Continue Reading