We’re all for keeping the little guys afloat. And whatever you think of the private-equity model in the first place, and what it means for “short-term bottom-line impact vs. long-term growth and workers” (perhaps a discussion for another day) it might all be fine until you read that last part…
(Hint: It’s Risk/Reward – until you take all the risk away from those who stand to get the greatest rewards)
(Another Hint: As long as the wealthy get to stay wealthy first and foremost, then some folks might be willing to help keep the little guys afloat)
SFGate: Behind the scenes, private equity angles for a piece of stimulus
https://www.sfgate.com/news/article/Behind-the-scenes-private-equity-angles-for-a-15182768.php
“…the private-equity model often leads to more unemployed workers because firms are focused on ruthless efficiency and the investors’ bottom line, rather than long-term growth and workers.”
“Currently, most small companies in a private-equity firm’s portfolio don’t qualify for stimulus funds provided through the Small Business Administration under what is known as the “affiliation rule.” Businesses must report if they have major investors, and they are blocked from the program on the theory that they can borrow money from their larger and deep-pocketed private-equity backers, rather than taxpayers.“