This company laid off hundreds of workers and moved operations to Mexico after obtaining a massive P

[turbinetree]

Complete Headline;

This company laid off hundreds of workers and moved operations to Mexico after obtaining a massive PPP loan

By Lydia DePillis, ProPublica
Published June 30, 2021

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Late last summer, after churning along through the pandemic with only a two-week pause, managers at FreightCar America called hundreds of workers into the break area at the company's factory near Muscle Shoals, Alabama, to tell them that the plant was closing for good.

For some employees, the news wasn't a shock: They'd been hearing rumors that management would move the work elsewhere for years. The timing, however, seemed odd. Only a few months earlier, the publicly traded company had received a $10 million Paycheck Protection Program Loan — the maximum amount available under a pandemic relief program designed to keep workers employed. Some had believed the funds would keep the doors open for a little while longer.

Nevertheless, the plant's managers announced that all production would move to FreightCar's new facility in Mexico, which meant most of the assembled workers would lose their jobs.

https://www.rawstory.com/this-company-got-a-10-million-ppp-loan-then-closed-its-plant-and-moved-manufacturing-jobs-to-mexico/

[MagickMuffin]

1. They should have to return ALL the money they stole from companies that could have used it

Plus fine them an additional fine for lying to obtain the loan.

Then LOCK EM UP!

[XanaDUer2]

2. preach

I'd really love to know how many other companies did this

[fescuerescue]

3. There are LOTS of things that you are permitted to spend the money on

Employee salaries are just one. I think supplies is another.

Since money is fungible, if can really be spent on anything. (i.e. defund the salary pool, refill it with PPP loan, use the money retrieved from the salary pool and spend it on executive bonus or stock buy back)

we got one for our 1 person business. Just a tiny loan of less than $1,000. Basically the only thing you cannot do, is just let it sit in the bank.

My accountant explained it this way "Its just free money". That's a quote.

[sanatanadharma]

4. I assume the PPP loan supplied the funds needed to make the move

Loan made possible the upfront costs of investment in a factory elsewhere, based upon ripping off the then ailing economic system.

[KY_EnviroGuy]

5. America the Beautiful Corporate Honeypot.

KY........