Here are three of the week’s top pieces of financial insight, gathered from around the web:
No guarantee of forgiveness
Federal loans offered to small businesses affected by the pandemic might not be as easily forgivable as many business owners believe, said Alan Rappeport and Emily Flitter at The New York Times. Paycheck Protection Program loans don’t need to be paid back if “businesses allocate 75 percent of the money to cover payroll costs,” with 25 percent for rent and other overhead expenses. As the crisis drags on, however, “some businesses are facing small payroll expenses because workers have opted for more generous unemployment benefits.” With many stores still under lockdown orders, business owners are growing concerned that they could be saddled with debt. And the process for having the loans forgiven is still unclear. For all the hurdles in getting loans approved, “the forgiveness phase could be 10
Australia’s Village Roadshow Limited has begun exclusive sale talks with BGH, one of two finance companies that at the beginning of the year made takeover approaches to the company. The company also said that keeping its cinemas, film studios and theme parks closed is costing it $6.45 million to $9.68 million (A$10-15 million) per month, even after government subsidies for staff salaries.
Village Roadshow Limited owns one of Australia’s largest cinema circuits, film distribution company Roadshow Pictures and the Village Roadshow Studios at Gold Coast in Queensland. It also owns 31% of New York-based sales and production company FilmNation, and 20% of Village Roadshow Entertainment Group (VREG), a U.S-based content development and production firm.
On Monday it revealed the complicated, exclusive, but non-binding terms of its next stage of negotiations with BGH. The finance company has agreed to offer up to A$2.40
By Steven Scheer
JERUSALEM (Reuters) – Israel Katz took over as Israel’s finance minister on Monday as part of a new government, saying he planned to work towards helping the economy recover from the effects of the coronavirus while also promoting competition.
Katz — who replaces Moshe Kahlon after a five-year stint — said he didn’t want to talk about specific economic policies, preferring to first meet the ministry’s experts.
“There will be a plan,” he told a ceremony to mark the changing of the guard. “It will be accompanied by reforms, … competition.”
He has 90 days to pass a 2020 state budget. Israel has been using a pro-rated version of the 2019 base budget.
The government has approved an emergency stimulus plan of some 100 billion shekels ($28 billion) to help businesses and the economy deal with the effects of the pandemic — pushing up the expected budget
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