> I agree - but that wasn't the point you raised in your original post.
The point is: debt/loans are not a silver bullet that will magically solve liquidity/solvency issues for small businesses. They come with important drawbacks and restrictions as well as legal liabilities. Buyer beware.
About the restaurants: what is the restaurant owners incentive to get a PPP loan? It doesn't really make sense to go through the pain of getting a loan, just to rehire/keep employees for 8 weeks doing nothing, while at the same time not being able to pay their rent/lease, and having no idea when/if they'll be able to reopen.
The point is: debt/loans are not a silver bullet that will magically solve liquidity/solvency issues for small businesses. They come with important drawbacks and restrictions as well as legal liabilities. Buyer beware.
About the restaurants: what is the restaurant owners incentive to get a PPP loan? It doesn't really make sense to go through the pain of getting a loan, just to rehire/keep employees for 8 weeks doing nothing, while at the same time not being able to pay their rent/lease, and having no idea when/if they'll be able to reopen.
Debt + high business uncertainty is a bad combo.