I understand why all the cities in Santa Clara are doing this.

It is because COVID forcing no one to be commuting into these cities is in effect going to start forcing all businesses in the Downtown's to go under. The reality is that COVID is closing down all downtown businesses unless they get bail outs from someone.

Thus the City governments are stuck, the idea that large portions of their downtown's will be closed will look like what happened to Vallco Mall in Sunnyvale. The reality is that those property values in the downtown's will collapse.

Unfortunately taking actions like these are not solving the real problem which is COVID.

Thus this may just be prolonging the inevitable, increasing loans and costs to the businesses with NO ASSURANCE that they will not be closed down again.

These businesses have a VERY DIFFICULT choice. Gamble that the virus will be under control in say the First quarter of next year, which so far we are only getting wishful thinking and no real scientific progress to report? Or freeze their operations voluntarily establishing a cost savings and ensuring employment to their current employees in the future?

It looks like a freeze will be the most safest and beneficial approach, because at least then we can bank on those people restoring their jobs because the businesses should have reserves to restart in that case. Taking the gamble means they spend more than they earn and wind up with more debt, which increases the likelihood of permanent closure.

Something to consider?

Speaking of Los Altos, the downtown newspaper there is now running a list of local businesses receiving federal COVID money. And you thought Los Altos did not have many businesses!

Rob,

It goes to show that even a lawyer and a property management company got a federal Grant.

It goes to show that "greed for the lack of a better word is good, greed works (Gordon Gecko)

PPP has been a larger rip off of the U.S. because if the system was properly frozen, we would pay for housing, food, utilities etc. of the people. And NO LOSSES would have occurred regarding businesses.

Yes, it would still be a HOLD on the economy, BUT this is going to be needed no matter what we do.

BUT all you are seeing here is companies stealing the money, and in fact NOT SPENDING IT. You can read about that from testimony from Mnuchin found here (Web Link

The companies took the loans and then held them until the federal government would guaranty that they don't have to repay it first. This was a false contract because the loans were not required to be grants. It could be argued that these contract are fraudulent and the loans are required to be cancelled. All funds returned to the Government.

RIDICULOUS?