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Originally Posted by The J-Man
Yup, American consumers get lectured about not having emergency savings, but apparently the business sector is even worse. No rainy day funds for most of these stupid companies.
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Interesting you mentioned this. The company I work for just took out a multi-million $ federal loan as part of new package of relief loans. By way of the loan structure, the feds are basically scolding us for not having enough savings built up (Which is true. We spend like crazy and run super lean when it comes to saving). The loan forbids executive level profit sharing distributions for the duration (5 years) and then for 1 additional year AFTER the loan is paid off. We can re-finance that debt through a private bank at any time but the 1 year moratorium on distributions remains.