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Big Businesses Sucked Up Initial PPP Funding, But More Is in the Works

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  • Reports show that publicly traded companies received $243.4 million of the total $349 billion of funding in the Paycheck Protection Program, which was designed for small businesses struggling as a result of the coronavirus.
  • Some chain restaurants were also able to get their hands on as much as $20 million while mom and pop shops across the country were left with nothing during the first round of funding distribution.
  • The Senate has approved a second round of PPP funding, with some specifically set aside for community vendors. The House is expected to vote on the funds Thursday.

Big Businesses Get Big Bucks

New reports indicate that public companies received $243.4 million of the total $349 billion in federal funding meant to go to small businesses struggling as a result of the coronavirus. 

The figures come from CNBC’s analysis of research from Morgan Stanley. In the report, CNBC compiled the biggest public companies receiving and accepting money from the Paycheck Protection Program. While the program was designed for small businesses to get funding, many were actually left empty-handed when funding went dry in under two weeks. 

Still, bigger businesses ended up getting a decent share. The biggest company on CNBC’s list was DMC Global, which has a market cap of $405 million and received $6.7 million from the PPP loan. Several other companies with market caps over 200 million also received funding. 

While not on CNBC’s list, two of the companies who ended up with the most money were restaurant chains Ruth’s Chris and Fogo De Chao, both of which took home $20 million. According to the Wall Street Journal, PPP loans were generally capped at $10 million, but Ruth’s Hospitality Group, which owns Ruth’s Chris Steakhouse was able to qualify for $20 million by seeking separate loans for each of its two subsidiaries. Fogo De Chao used the same strategy. 

Frustrations With PPP Funding

Consumers are not pleased with big companies taking money from a fund that could be helping mom and pop shops in higher need. There is a petition on Change.org with over 220,000 signatures demanding that Ruth’s Chris return its $20 million.

“Many small businesses are now being told there is no money left for them, and they cannot pay their employees, and may have to close forever,” the petition says. “This is a travesty, and a disgusting display of corporate greed during a time of disaster.”

Consumers are not alone with their frustrations. Rep. Nydia Velázquez (D-NY), the House Small Business Committee Chairwoman, said that the PPP needs more “transparency and safeguards” so small businesses are protected.

New Wave of PPP Funding

More funding for small businesses is in the works. On Tuesday, the Senate passed a $484 billion interim coronavirus funding bill. $310 billion of this is set to replenish the PPP, and $60 billion of that is going to small lenders and community banks.

Another $75 billion is going to hospitals, and $25 billion is going to testing expansions. There will also be $60 billion set aside for emergency disaster loan grants that will help communities in underserved areas. The House is expected to vote on the bill on Thursday. 

The biggest concern small business owners have about this second wave of funding is the possibility of it running out just as quickly as the first round. According to Forbes, that is a strong possibility. 

During the first wave of funding, 1.6 million applicants were approved. The Treasury Department said that the Small Business Association “processed more than 14 years’ worth of loans in less than 14 days.”

It is unclear how many businesses applied or attempted to apply, but it can be assumed that many more are going to try. Forbes says that there are roughly 30 million small businesses in the country and they employ close to half of the country’s workforce. 

See what others are saying: (NPR) (GQ) (The Hill)

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White Supremacist Propaganda Reached Record High in 2022, ADL Finds

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 “We cannot sit idly by as these extremists pollute our communities with their hateful trash,” ADL CEO Jonathan Greenblatt said.


White supremacist propaganda in the U.S. reached record levels in 2022, according to a report published Wednesday by the Anti-Defamation League’s Center of Extremism.

The ADL found over 6,700 cases of white supremacist propaganda in 2022, which marks a 38% jump from the nearly 4,900 cases the group found in 2021. It also represents the highest number of incidents ever recorded by the ADL. 

The propaganda tallied by the anti-hate organization includes the distribution of racist, antisemitic, and homophobic flyers, banners, graffiti, and more. This propaganda has spread substantially since 2018, when the ADL found just over 1,200 incidents. 

“There’s no question that white supremacists and antisemites are trying to terrorize and harass Americans with their propaganda,” ADL CEO Jonathan Greenblatt said in a statement. “We cannot sit idly by as these extremists pollute our communities with their hateful trash.” 

The report found that there were at least 50 white supremacist groups behind the spread of propaganda in 2022, but 93% of it came from just three groups. One of those groups was also responsible for 43% of the white supremacist events that took place last year. 

White supremacist events saw a startling uptick of their own, with the ADL documenting at least 167, a 55% jump from 2021. 

Propaganda was found in every U.S. state except for Hawaii, and events were documented in 33 states, most heavily in Massachusetts, California, Ohio, and Florida.

“The sheer volume of white supremacist propaganda distributions we are documenting around the country is alarming and dangerous,” Oren Segal, Vice President of the ADL’s Center on Extremism said in a statement. “Hardly a day goes by without communities being targeted by these coordinated, hateful actions, which are designed to sow anxiety and create fear.”

“We need a whole-of-society approach to combat this activity, including elected officials, community leaders, and people of good faith coming together and condemning this activity forcefully,” Segal continued. 

See what others are saying: (Axios) (The Hill) (The New York Times)

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Adidas Financial Woes Continue, Company on Track for First Annual Loss in Decades

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Adidas has labeled 2023 a “transition year” for the company. 


Yeezy Surplus 

Adidas’ split with musician Kanye West has left the company with financial problems due to surplus Yeezy products, putting the sportswear giant in the position to potentially suffer its first annual loss in over 30 years. 

Adidas dropped West last year after he made a series of antisemitic remarks on social media and other broadcasts. His Yeezy line was a staple for Adidas, and the surplus product is due, in part, to the brand’s own decision to continue production during the split.

According to CEO Bjorn Gulden, Adidas continued production of only the items already in the pipeline to prevent thousands of people from losing their jobs. However, that has led to the unfortunate overabundance of Yeezy sneakers and clothes. 

On Wednesday, Gulden said that selling the shoes and donating the proceeds makes more sense than giving them away due to the Yeezy resale market — which has reportedly shot up 30% since October.

“If we sell it, I promise that the people who have been hurt by this will also get something good out of this,” Gulden said in a statement to the press. 

However, Gulden also said that West is entitled to a portion of the proceeds of the sale of Yeezys per his royalty agreement.

The Numbers 

Adidas announced in February that, following its divergence from West, it is facing potential sales losses totaling around $1.2 billion and profit losses of around $500 million. 

If it decides to not sell any more Yeezy products, Adidas is facing a projected annual loss of over $700 million.

Outside of West, Adidas has taken several heavy profit blows recently. Its operating profit reportedly fell by 66% last year, a total of more than $700 million. It also pulled out of Russia after the country’s invasion of Ukraine last year, which cost Adidas nearly $60 million dollars. Additionally, China’s “Zero Covid” lockdowns last year caused in part a 36% drop in revenue for Adidas compared to years prior.

As a step towards a solution, Gulden announced that the company is slashing its dividends from 3.30 euros to 0.70 euro cents per share pending shareholder approval. 

Adidas has labeled 2023 a “transition year” for the company. 

“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes,” Gulden said. “I am convinced that over time we will make Adidas shine again. But we need some time.”

See what others are saying: (The Washington Post) (The New York Times) (CNN)

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Immigration Could Be A Solution to Nursing Home Labor Shortages

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98% of nursing homes in the United States are experiencing difficulty hiring staff. 


The Labor Crisis 

A recent National Bureau of Economic Research paper has offered up a solution to the nursing home labor shortage: immigration. 

According to a 2022 American Health Care Association survey, six in ten nursing homes are limiting new patients due to staffing issues. The survey also says that 87% of nursing homes have staffing shortages and 98% are experiencing difficulty hiring. 

The National Bureau of Economic Research (NBER) outlined in their paper that increased immigration could help solve the labor shortage in nursing homes. Immigrants make up 19% of nursing home workers.

With every 10% increase in female immigration, nursing assistant hours go up by 0.7% and registered nursing hours go up by 1.1% And with that same immigration increase, short-term hospitalizations of nursing home residents go down by 0.6%.

The Solution 

Additionally, the State Department issued 145% more EB-3 documents, which are employment-based visas, for healthcare workers in the 2022 fiscal year than in 2019, suggesting that more people are coming to the U.S. to work in health care. 

However, according to Skilled Nursing News, in August of 2022, the approval process from beginning to end for an RN can take between seven to nine months. 

Displeasure about immigration has exploded since Pres. Joe Biden took office in 2021. According to a Gallup study published in February, around 40% of American adults want to see immigration decrease. That is a steep jump from 19% in 2021, and it is the highest the figure has been since 2016.

However, more than half of Democrats still are satisfied with immigration and want to see it increased. But with a divided Congress, the likelihood of any substantial immigration change happening is pretty slim. 

See what others are saying: (Axios) (KHN) (Skilled Nursing News)

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