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Mark Cuban Proposes Plan To Save America's Small Businesses After Federal Relief Fund Is Exhausted

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Mark Cuban Proposes Plan To Save America's Small Businesses After Federal Relief Fund Is Exhausted

Owner of the Dallas Mavericks basketball team and host of “Shark Tank,” Mark Cuban says it’s too late to save many of America’s small businesses, as the Paycheck Protection Program is out of funds.

The Window Of Opportunity Has Closed

The billionaire investor Cuban believes the haphazard implementation of the Paycheck Protection Program and subsequent exhaustion of the $349 billion allocated it out of the CARES Act, means it is now too late to save many small businesses.

Cuban told Business Insider, “I think we missed the window of opportunity to pay small businesses to keep their employees.” 

PPP Needs A Rejig

As unemployment claims have risen to 22 million in recent weeks, Cuban has advice for Congress, now working on the fourth relief package for the U.S. economy.

The Dallas-based investor recognizes the intent behind the PPP was good but says “the mechanics of the program” are out of whack. Loans under the scheme cover payroll and operating expenses for eight weeks, but by mid-April, many businesses have already been close to collapse for a month.

“Employers need this money to bring people back in a manner that allows the funding to cover [the] reopening of their companies,” said Cuban taking stock of the situation.

Cuban feels more funding is needed to cover costs for extended periods of time, pending which employers might have to reduce wages or cut hours, leading to some employees preferring to stay on unemployment.

Test Test Test

Cuban believes testing for coronavirus is the key to restoring trust in the economy, and testing is needed to get people back to work.

The billionaire says employers will have to go beyond providing a safe environment, they will need to reassure employees so that they feel safe. He highlighted the challenges facing employers, “Many of those people won't come back if the employer brings in new workers to replace those who prefer to stay on unemployment because of their concern they may get infected by the new, unknown individuals.”

There is an urgent need for a testing strategy that inspires confidence. This will require coordinated efforts between the government and the private sector, according to the Shark Tank host.

Photo Credit: Courtesy of Mark Cuban's Instagram.

 

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