Blue Mountain - COVID-19 Update

[GrilledSteezeSandwich]

29 minutes ago, toast21602 said:

Nice I guess I'm a poor since I should be getting some stimulus money! 

I got it. I’m lower middle class....I’m actually surprised you get it with your wife being a lawyer. 

[GrilledSteezeSandwich]

39 minutes ago, PSUFly said:

I had my wife pick me up after my Schuylkill River trip at a park a bit north of Reading yesterday.  The kayak launch/landing is a good bit away from the rest of the park, so not really any people there...but on the way out, I saw two large groups of people (15 or 20 each), hanging out, grilling, etc.  Idiots.  

Looks like there were a bunch of issues with the PPP loans...larger businesses like chain restaurants and hotels supposedly ate up a lot of the funding, and Wells Fargo is getting sued for prioritizing loans based on what would get them the largest processing fees.  Sounds like more of the loans will be processed this week, so I'm guessing my wife will be busy at work again

 

We were approved but no $$$ yet.  Shake shack is giving back the 10 million they received.  

[toast21602]

3 minutes ago, GrilledSteezeSandwich said:

I got it. I’m lower middle class....I’m actually surprised you get it with your wife being a lawyer. 

Of course I wish we were in a position where we didn't get it but luckily we definitely don't need it. Both of us could definitely harder and put in more hours and make more money but we value time off/away from work and not busting our asses than earning more money. 

[AtomicSkier]

33 minutes ago, GrilledSteezeSandwich said:

I got it. I’m lower middle class....I’m actually surprised you get it with your wife being a lawyer. 

https://www.pewresearch.org/fact-tank/2018/09/06/are-you-in-the-american-middle-class/

 

 

[AtomicSkier]

50 minutes ago, GrilledSteezeSandwich said:

I got it. I’m lower middle class....

Since you said you got the full stimulus check, you make less than $75,000 a year.  That isn't enough to qualifier as "upper class" for a single person in the LV as Pew Research says that line is at $79k, but you obviously are in the upper middle class.  Pew says lower class for a single person is <$27k, so I'd say you are definitely upper middle class.

[GrilledSteezeSandwich]

21 minutes ago, AtomicSkier said:

Since you said you got the full stimulus check, you make less than $75,000 a year.  That isn't enough to qualifier as "upper class" for a single person in the LV as Pew Research says that line is at $79k, but you obviously are in the upper middle class.  Pew says lower class for a single person is <$27k, so I'd say you are definitely upper middle class.

2018 I was still a partner as well so had to split profits....

[AtomicSkier]

5 minutes ago, GrilledSteezeSandwich said:

2018 I was still a partner as well so had to split profits....

But don't kid yourself saying you're low middle class.  Lower middle class doesn't take multiple ski trips a year 🤑

[GrilledSteezeSandwich]

7 minutes ago, AtomicSkier said:

But don't kid yourself saying you're low middle class.  Lower middle class doesn't take multiple ski trips a year 🤑

More being sarcastic..a lot of folks who make way into the hundreds of thousands a year still think they’re middle class.  I feel like the $1200 the government gave me was a thank you for dealing with this pain in the ass pandemic...

[GrilledSteezeSandwich]

Only 948 new cases of corona in PA but 92 new deaths.  That’s two days in a row of decline.  The blonde doctor lady said 14 days in a row of decreases and things can stop opening up. 

[RidgeRacer]

Only 948 new cases of corona in PA but 92 new deaths.  That’s two days in a row of decline.  The blonde doctor lady said 14 days in a row of decreases and things can stop opening up. 

Good news and terrible news all at the same time. Let's hope the decline continues.

[GrilledSteezeSandwich]

The lockdown for PA has been extended to May 8

[GrilledSteezeSandwich]

39 minutes ago, RidgeRacer said:

Good news and terrible news all at the same time. Let's hope the decline continues.

I think the numbers will continue to be all over the place based on when tests come back. 

[toast21602]

1 minute ago, GrilledSteezeSandwich said:

I think the numbers will continue to be all over the place based on when tests come back. 

And after all the idiots who are protesting together start having symptoms

[GrilledSteezeSandwich]

6 minutes ago, toast21602 said:

And after all the idiots who are protesting together start having symptoms

Looks like a couple thousand people at the capital. Don’t any of them have jobs..gosh. 

[GrilledSteezeSandwich]

Wow 

[trackbiker]

Just now, GrilledSteezeSandwich said:

Looks like a couple thousand people at the capital. Don’t any of them have jobs..gosh. 

Looks more like a couple hundred people if that. All close together and not wearing masks. We'll see how that works out for them. Unfortunately it will take a couple of days to know whether there is a spike in infections. Too bad you can only give Darwin Awards posthumously.

[GrilledSteezeSandwich]

2 minutes ago, trackbiker said:

Looks more like a couple hundred people if that. All close together and not wearing masks. We'll see how that works out for them. Unfortunately it will take a couple of days to know whether there is a spike in infections. Too bad you can only give Darwin Awards posthumously.

More like 1-2 weeks to see a spike in infections between the time symptoms occur and testing and even test results are returned.  Probably right around the time the blonde doctor “lady” will allow online online auto sales and notary services.  

[GrilledSteezeSandwich]

 

On the Morning Calls Facebook page there were five times as many angry faces vs Love smilies on the livefeed of the protest.  I’m surprised police aren’t enforcing social distancing..

[toast21602]

About 1/3 of all cases identified are in the US and about 1/4 of all recorded deaths are in the US.

[Mixilplix]

We are going to start to see peoples true colors....

[tarponhead]

Looks more like a couple hundred people if that. All close together and not wearing masks. We'll see how that works out for them. Unfortunately it will take a couple of days to know whether there is a spike in infections. Too bad you can only give Darwin Awards posthumously.

GSS also did the official WH estimate on the inauguration attendance

[GrilledSteezeSandwich]

5 minutes ago, tarponhead said:

GSS also did the official WH estimate on the inauguration attendance

Lo Que Dijo!!!

[tarponhead]

Jersey trends (statewide new positives)

14apr / 4,240

15apr / 2,206

16apr / 4,287

17apr / 3,150

18apr / 2,953

19apr / 3,832

20apr / 3,505

 

Only good news is union county *appears* to have a solid downward trend

[toast21602]

Here"s just another example of how small business that should be benefiting from the bailout are getting fucked by large companies. Glad to see these places getting funds instead of the actual small businesses 🙄

Picture for attention.

The pandemic has been devastating for small businesses, particularly independent restaurants that rely on foot traffic. Congress created a $350 billion lifeline called the Paycheck Protection Program. The Paycheck Protection Program allowed small businesses with 500 or fewer employees to receive a loan equal to 2.5 times their monthly payroll costs, up to a cap of $10 million. If the business uses at least 75% of the loan to cover payroll costs, it will be forgiven by the government. The purpose of this money was to keep people employed.

But by April 16, less than two weeks after the program launched, it ran out of money. Many thousands of small businesses, some of the brink of permanent closure, were not able to secure loans.

Some of these companies shared their stories with Popular Information. Divalicious Custom Cakes in Lake Worth, Florida, which employs four people, applied for funds on April 5. But the cake makers were shut out and were forced to close their business permanently. Holy Grail Pub in Plano, Texas, which has 26 employees, applied for the program as soon as it launched. But the pub received no money, and the owners have been forced to take out a second mortgage on their home and draw down on their retirement savings. 

But, before the money ran out, Ruth's Hospitality Group, the parent company of Ruth’s Chris Steak House, was able to secure a $20 million loan. How did a company with thousands of employees and over $441 million in revenue last year — and $86 million cash reserves — benefit from this fund while thousands of real small businesses received nothing? 

The law contained an exception for restaurant chains as long as the chain didn’t have more than 500 employees at any single location. Ruth’s Hospitality Group exploited that exception by applying through two corporate subsidiaries, obtaining twice the limit for a single company on April 7. Ruth’s Hospitality Group was able to get to the front of the line because JP Morgan Chase, like many banks, gave preference to companies that had a preexisting banking relationship. 

Ruth’s Hospitality Group has extensive banking relationships and, before getting taxpayer money, was able to borrow money from other sources. On March 16, Ruth’s Hospitality Group drew down $56 million from an existing credit line. On March 26, the company tapped $30 million more in cash. 

What happened to last year’s surplus? The company spent some of it on stock buybacks. According to Ruth’s Hospitality Group’s latest SEC filing, it spent $5.2 million buying its own stock in 2019. 

This all might be defensible if Ruth’s Hospitality Group was using the money to keep its hourly restaurant workers, like servers and bartenders, on its payroll until it can reopen. But Popular Information has learned that this is not the case.

Massive furloughs at Ruth’s Chris

The cash infusion has not been used to save the jobs of rank-and-file workers, according to the company’s own statements and furloughed employees who spoke to Popular Information. 

According to the company, it closed “23 restaurants locations where take-out and delivery is not viable” and furloughed “a significant number of field and home office team members.” Ruth’s Hospitality Group did not respond to an inquiry about how many of its 5,195 hourly restaurant staffers have been furloughed. 

But it appears that virtually all of them are out of a job. Ruth’s Chris is only operating take-out and delivery where “sales are sufficient to cover the costs of management staffing those locations.” This suggests that only managers remain employed by the company. Even then, these jobs are not being supported by money from the Payroll Protection Program because Ruth’s Chris is only operating take-out and delivery where sales are robust enough to cover the cost of management at those locations. 

This is consistent with what a furloughed employee told Popular Information. At restaurants in Alabama, Tennessee, and Georgia, “the only people remaining on payroll are managers,” according to the employee. The rest of the staff at these restaurants, with the possible exception of a few chefs, were let go on March 16. “We work really hard to uphold the ideals of Ms. Ruth. We work very hard to give you a great experience. It would just be nice to get something in recognition,” the employee said. 

Another furloughed Ruth’s Chris employee in Indianapolis said that three managers and a few chefs were still working delivery, but approximately 50 hourly employees in the restaurant were out of work. The employee received a check for less than $150 on March 27, which was supposedly equivalent to their average weekly pay from January to March. The $20 million forgivable loan, financed by taxpayers, would be enough to pay all 5,195 hourly restaurant workers $3,850 each.

Taxpayer subsidies for millionaires

Cheryl J. Henry, the CEO of Ruth’s Hospitality Group, was paid $6.1 million in total compensation in fiscal year 2018. Her base pay is $650,000, with the rest comprised of stock and bonuses. Ruth’s Hospitality Group also continues to pay hundreds of thousands of dollars to its former CEO, Michael O’Donnell (base pay $500,000), its Chief Administrative Officer, Susan L. Mirdamadi (base pay $340,000), and its Chief Financial Officer, Arne G. Haak (base pay $300,000). All of these executives are eligible for large bonuses and an “automobile allowance” of $700 to $1000 per month. 

This is how Ruth’s Hospitality Group can spend most of the $20 million on “payroll” while furloughing nearly all of its staff. Under the Payroll Protection Program, salary up to $100,000 counts toward the requirement that 75% of the forgivable loan is used to support payroll. But for a company like Ruth’s Hospitality Group, they could meet that threshold, for example, with just 150 employees that make $100,000 and up.

The company said that “Ms. Henry and the other members of the executive team have elected to reduce their 2020 base salaries effective March 30, 2020.” It did not specify the amount of the reduction, but it is safe to say that Henry and her colleagues will be making in excess of $100,000. Also not mentioned were other forms of compensation for Henry and her executive team, which often significantly exceed their base salary.  

Not an exception

The government is not releasing the names of the companies that obtained Paycheck Protection Program loans. Ruth’s Hospitality Group is a public company and, therefore, was required to report the loan to the SEC.

But it is not the only company that received a “small business” loan with large revenues. According to summary data released by the Small Business Administration, banks approved 67,216‬ loans of $1 million or more. Assuming the rules were followed, that means these companies have a monthly payroll of at least $400,000. Funds distributed to these companies accounted for more than 40% of the available money. 

Congress and the administration are reportedly nearing a deal on a package that would add an additional $300 billion to the program. 

[AtomicSkier]

My dad has his PPP money in hand as of last Friday morning.  🤷‍♂️