
Denver, Colo., Apr 19, 2020 / 03:01 pm (CNA).- After receiving more than 1.6 million applications, a key part of the US government’s economic response to the coronavirus pandemic, known as the Paycheck Protection Program, ran out of money Thursday and will no longer be accepting new applications.
In the two weeks the Paycheck Protection Program was active, the application process for the loans excluded small business owners with criminal records from applying— potentially hurting both business owners with criminal records and their employees, advocates and those with personal experience told CNA.
What is the PPP?
Congress passed the Coronavirus Aid, Relief, and Economic Security Act March 27 to help relieve the economy during the coronavirus pandemic.
Among various measures, including expansions to unemployment benefits, the CARES Act authorizes some $350 billion in loans to small businesses, intended to allow these businesses to continue to pay their employees. The loans were given on a first come, first serve basis.
The loans were capped at $10 million, were open to businesses with fewer than 500 employees per location, and were intended to cover two months of payroll costs.
The federal government promised to forgive the loans if a business used at least 75 percent of the funds to maintain its payroll at “pre-pandemic levels” for eight weeks after the loan is disbursed, the New York Times reports.
The remaining money could be used only to pay for certain expenses, such as a mortgage, rent, and utilities, according to the Times.
Those with criminal records left behind
The most recent guidelines from the Small Business Administration regarding the PPP stated that business owners will be denied a loan if they are facing criminal charges, or have had a felony conviction in the past five years.
This policy is, according to a group of nonprofit social justice organizations who wrote an April 10 letter to Congress, more restrictive than the SBA’s existing regulations regarding criminal record restrictions for small business loans.
Applicants are asked about criminal history for regular SBA loans. A typical small business loan application from the SBA allows applicants to provide details about their criminal history beyond a simple “yes” or “no”— unlike the emergency loan application, which explicitly states that the loan will not be approved if the applicant answers “yes” to either of the two questions pertaining to criminal records.
“With one in three Americans having some sort of record, and people with records experiencing an unemployment rate five times higher than the average rate, these restrictions will have a significant and detrimental impact on individuals, families, and communities across the United States,” the group of nonprofits said in their letter.
The application form for the PPP itself had more restrictions, such as mandating that no one owning 20% or more of the business be subject to any “means by which formal criminal charges are brought in any jurisdiction.”
A similar loan from the SBA called the Economic Injury Disaster Loan also asked for the applicant’s criminal history, and seems to exclude those who have “ever” been convicted, pleaded guilty, pleaded no contest, been placed on pretrial diversion, parole, or probation for “any criminal offense.”
The small business hustle
James Blum, a Catholic who runs a community in Aurora, Colo., that assists men coming out of prison, told CNA that people with criminal records already face major challenges finding employment and getting loans.
Blum— who himself spent time in prison and has a felony on his record— considered applying for the PPP himself, but knew his felony would exclude him.
Many guys with criminal records hope, Blum said, that it would be easier to start their own company rather than try to get hired. The truth is, he said, most businesses, even if you’re not a felon, don’t succeed. There’s a lot of money that must be invested, and there’s an attitude of hustle that you have to have.
Reporting from the non-profit Marshall Project bears out Blum’s experience, suggesting that because people with felonies, in particular, often cannot get jobs, many start their own businesses.
Blum said he knows a man with a criminal record who started his own janitorial business, and found some success doing that until the company eventually went under.
Another man he knew started a company doing custom tile, and took on several employees, but “he’s working like a dog” to make ends meet.
“Many guys think, ‘Oh I’ll just work for myself.’ And that sounds good, but it’s very difficult to be successful as a small business owner in this country,” he said.
“The call never comes”
Blum’s organization, My Father’s House, helps men gain the skills they need to be successful post-prison. He said at least three of the men who frequent the house are currently out of work, one of whom was just released from prison and did not have a chance to look for a job before the pandemic began.
The other two, he said, have been laid off and are filing for unemployment.
“When they first get out of prison, men, especially those convicted of sexual offenses, aren’t even allowed to access the internet, and they have to have permission, and that can take months to build the trust with the parole officer and the treatment providers and let them access the internet, and even have an email address,” Blum said.
“To try to apply for a job in this world without an email address is just ridiculous. Every time you go on a website, the first thing they ask you is what’s your email address. And so even if you can get permission to go to a monitored computer site, like at the parole office, and you go to a website, the very first thing they’re going to ask you is for your email address.”
At some point the parole officer will allow them to create an email address, but they can only access that email at the parole office, Blum said. The logistics are difficult, partly because they have to create a resume on a computer they’re not familiar with, and they can’t access their email every day.
When an employer finally gives someone with a criminal record a job interview, you can explain a felony as best you can, but it may not always make a difference, Blum said. The interview could be going well, and the interviewer could be impressed with the applicant’s knowledge and experience, but it may end up being moot once they learn of the applicant’s record.
“The answer is just: ‘Well, we’ll give you a call.’ And the call never comes,” Blum said.
Though a recruiter may interview a candidate with a criminal record, most Human Resources departments will step in after that. Success in the interview is not a predictor of success in getting the job, Blum said.
“There’s a whole series of decision makers that you never even get to meet,” he said.
“At some point you end up with a whole class of people that have served their sentence, they’ve supposedly paid their debt to society, and yet they cannot enter into the economy, and into society at a regular level.”
Blum noted that he himself is very blessed to be able to work full-time hours from home during the pandemic, and not be laid off, but “I’m in the minority, for sure, among felons.”
“How does that make any sense?”
Brian, a Catholic living in Denver who is working to start a software consulting business, told CNA that he tried to apply for the emergency loan, but a misdemeanor on his record automatically excluded him.
Brian is on a diversion program and has a misdemeanor harassment charge on his record. While he does not have a felony on his record, he has found it difficult to find employment since his misdemeanor charge, despite being an experienced computer programmer.
“Now I’m going to have to suffer financially for it, as if I haven’t suffered enough,” he told CNA.
While it may be politically expedient to include a clause excluding those with criminal records from the emergency loan program, Blum said it ends up hurting not only the bosses, but the workers as well.
“By stopping the business owner— who was convicted of a felony five, six, seven years ago and served his time and paid his debt to society— by stopping that man from getting the loan, you’re punishing another guy who’s never committed a crime in his life, and that guy’s family,” Blum said.
“[The worker] is going to lose his job because the business owner can’t afford to pay the payroll. How does that make any sense?”
If the purpose of the emergency loan program is to relieve the American economy, he said, he doesn’t see why a business owner’s criminal history is important.
“They think they’re punishing the business owner, but really they’re punishing these other people,” he said.
[…]
Mr. Phillips is very quick to demand that others respect him, but he shows no respect for others; just rudeness and bullying.
It is shameful behavior, and that such a man is allowed to torment those poor kids who did *NOTHING* wrong and give maudlin interviews to oh-so-sympathetic reporters is disgraceful. I do not hesitate to use the word “malevolent” about him.
These Native Americans are protesting something, what is it? I believe their protest is against White Nationalism Trump style. There are many who want to believe this is a white Nation. It is not! We are a Nation made of of immigrants, many different colors of skin. When the Natives shouted “You stole our land” why not listen to what they have to say? We cannot continue our denial of what we done to them. On another site I was blacklisted for upholding the perennial teachings of the Church. The truth caused me to be blacklisted. Will the Register do the same?
I think that could go back to ancient times to find something to be offended by, or to find an injustice against ourselves, perceived or otherwise. But to go back to Christopher Columbus and claim that is relevant to a person living today is a bit of a stretch.
To what Register are you referring?
Judging by the man who accompanied Mr. Phillips, they were protesting the presence of those of European ethnicity in the United States.
I do not understand how you can conclude credibly that wanting secure borders and not wanting illegal aliens to, among other things, drive up the unemployment and drive down the salaries of lower-income Americans, not a few of whom do not have “white skin,” constitutes “White Nationalism.”
“When the Natives shouted “You stole our land” why not listen to what they have to say? We cannot continue our denial of what we done to them. ”
In this particular instance, I’m not going to listen to anybody who bullies teenagers and lies about it.
And if I did listen to them, what do you propose – that all immigrants and those descended from immigrants leave the country? Then, to take one example, we should send all the people with Anglo-Saxon blood out of Britain and leave it to the Celts. Oh, but wait, the Celts drove out the Picts, didn’t they? And what about the Danes?
And back to the United States, to whom would we give “their” land? Indians were not one monolithic group. Many tribes waged bloody warfare over lands (in contradiction to the myth of the sweet, happy, unified people sitting around holding hands and singing Kumbaya). So – many of them were perfectly happy to *gain* land by conquest; they’re hardly in a position to claim that it’s unjust that they *lost* land the same way.
I’ve not received a degree in History or even close to it, but my understanding of the population of North and South America is that the one time “land bridge” with Asia permitted the development of land previously uninhabited. Everyone came from Adam and Eve…we are all immigrants beyond the Garden! If the argument is that the people from Europe who came by ship later, or up through Central America after landing by ship there, were unfair to those they met here, then maybe we can agree that searches for wealth and fame common to most is at the core of the dispute, not the color of skin. Immigrants from Europe who came legally and immigrants who are coming yet from Central and South America are equal and as deserving of a new home as all who came here before are, including those who identify as “natives”. All here are required by Natural law to try to make room for their “brothers”.
The truth or your opinion of the truth?
We are a Nation made of(sic) of immigrants, many different colors of skin.
Including every single tribe of American Indians whose ancestors migrated to North America across the Bering Strait land bridge from Siberia several millenia ago.
Your subjective opinion and defense of a character as flawed as Nathan Stanard/Phillips is extremely short on facts.
Because WE haven’t done anything to them. We are responsible for our own sins, not those of someone who lived centuries before we were born. Simple as that.
Why have I been blacklisted from this site also. On Lifesite News the moderator is a very sensitive man. I spoke in defense of the Church and it hurt his touchy feely sentiments. What hapenned to masculine Catholicism???
If you mean, “Why did my comment not post immediately,” it’s because *nobody’s* comments post immediately. See the yellow box under “Leave a Reply?” It says “All comments posted at Catholic World Report are moderated. Just wait, and your post will show up, unless it breaks the rules the editors have set – “comments containing obscene language or personal attacks—or those that are deemed by the editors to be needlessly combative or inflammatory—will not be published.”
I’m not an editor, just someone who read the statement.
Incidentally, PaxTecum77, are we to conclude that you are also IesuEt Maria, since you both write the same way?
Being banned at LifeSite is a badge of honor. Wear it proudly. Long before the election of Jorge Bergoglio, I was pointing out the culture of intrinsically disordered sexual deviants masquerading as Priests and their goal of destroying the Church. I was banned without explanation. With the revelations unleashed by grand jury reports, Archbishop Vigano’s testimonies, Wuerl’s behavior in Pennsylvania and DC and his getting caught lying about his knowledge of McCarrick, the none too secret rumors about McCarrick being confirmed, the behavior of Cupich, Tobin, Dolan, McElroy, et al, the behavior of the Peronist Pontiff, the behavior of the St. Gallen Mafia, the curia, Kasper, Marx, Danneels, et al, I’ve been vindicated. I’m still banned though and I’m proud of the fact that people like that don’t want to read opinions like mine. That doesn’t stop them from attempting to solicit donations from me to keep them afloat.
Mr. Phillips should harken to the Latino world on non boring rhythms….
https://youtu.be/2Wv89NBLinE
Even at church its also dangerous nowadays
Native(sic) American activist Nathan Phillips has violent criminal record and escaped from jail as teenager