COVID and CARES

We have all had very different experiences in life.  These seem to have been magnified over the past 4-6 weeks with everything going on in the world.  The threat of COVID and the impact of the CARES act has hit each of us very differently.  I just want to share some of my thoughts from my point of view.  Your may certainly be different if you've seen it from a different angle.  This is merely from my vantage point.

COVID-19

Fear Factor

One of my biggest concerns with the Coronavirus and COVID-19 is the way people have let themselves, and their whole lives, be taken over and consumed by fear.  Based on yesterday's SC DHEC statistics, there have been 38,833 tests administered with 4,246 positive results.  That is a 10.9% positive test return.  Now, I do not know the typical percentage of positive test for season flu, strep throat, and other 'regular' viruses, but a near 90% negative return rate seems illogical.  If this data is available, it would be enlightening to compare with the COVID test results.  

As Christians, I don't believe we should be reacting this way.  2 Timothy 1:7 tells us, "For God gave us a spirit not of fear but of power and love and self-control."  Should we go out and stop washing our hands, or go around "licking door knobs" as one friend so eloquently shared yesterday?  Certainly not.  But we cannot put our lives on hold, watch our businesses suffer, let our health deteriorate, and live a life of fear.  We serve a God that has already conquered the plague, polio, malaria, bird flu, swine flu, and even death!  

The Hype

I believe that one factor significantly contributing to the fear factor has been the hype circulating around the virus.  It's been national news before it ever made it to our nation.  Again, I have no medical insight whatsoever, my wife, sister, and sister-in-law work in the field - when I've got questions, they've got answers.  

But riddle me this:  When you have the flu, you know you have the flu.  When you have strep, you know you have strep.  The signs and systems are consistent from person to person.  

Yes, I'm aware that the effects on some are greater due to compromised immune systems or health deficiencies, but that's a whole other topic that I'm too rough around the edges to touch on other than this one point - You can't start getting healthy after it's too late.  If the heart attack takes you out, there's no cutting out fatty foods tomorrow and going for a walk.  If the economy crash hurts you financially, there's no go back and start saving before the crash happens.  You have to prepare before the crap hits the fan.  

Back to they hype:  How does the same virus kill some (percentages vary by source and seem grossly unreliable) while giving others an annoying cough if anything?  It just doesn't make sense to me.

CARES Act

Stimulus Checks

I want to tread lightly here because I don't believe this will be a very popular opinion.  But it's just a thought so let's talk it out if you disagree.  Our family's stimulus check came in this past week.  We tithed a portion of it and put the rest in savings.  Several questions I have for our situation.

1.  Why didn't we go spend it and stimulate the economy?  There's nowhere to go!  I can't take my wife out to eat.  I can't take my kids to a trampoline park or movie.  All I can do is order some clothes online (local or big box) or go to Walmart and buy something I likely don't need.  

2.  Who should have gotten checks?  This is where some will get upset, but again, this is merely my opinion and I am open to hearing others' thoughts.  I honestly do not believe that my family should have received a stimulus check.  Yes, we met all the categories and the amount I had calculated was the exact amount that was deposited.  But for us, I've been working and getting paid while Britt already stayed home with the kids - there was no change in income from the virus.

Fully employed people or people with no income have not been affected and were not in true need of the money.  This also goes for those on Social Security in its many forms.  If your income was not decreased as a result of COVID - ie. retirement benefits, SSA, disability, pensions, etc. - then there has been no net effect on your income and subsequently no effect on your ability to survive.  I loved one category that was originally discussed with those drawing partial SS or disability and working who may have been impacted but that part ended up not being a requirement.  

On top of that, back to a point earlier, we didn't need the money this month because we haven't spent as much.  Britt's car has been basically parked for a month.  We aren't going to eat, aren't spending money on recreational activities, and haven't been shopping as much.  We saved money through all of this.  

I just feel that the money could have hit a more impacted target if it had been more appropriately allocated.  That's not about low income vs. high income.  It's about those who had their income reduced because of the virus.  

Paycheck Protection Program (PPP)

This was an amazing concept but a poor rollout with a decent execution.  The idea to put money in the hands of employers in an effort to encourage them use the funds for payroll was great.  However, it was rushed without being fully fleshed out and took banks a few days (Friday 4/3 - Monday 4/6) to figure out how the program would seemingly work.  Banks were also asked to trust the government and given constantly shifting guidance daily during the program's initial lifespan.

From the Banker POV

Again, several flaws I noticed with this program.  The SBA, government, and other organizations made it sound too simple to businesses.  It was presented to business owners that if they walked into a bank with their payroll information, they would walk out with a check for 2.5 times that amount.  It was just a wee bit more complicated than that.  

Some people got upset with banks for taking care of 'their' customers only.  As a banker, let me defend this decision.  Let's say I have 1 slice of bread.  Am I going to make my child one of those broke folded over sandwiches to keep from starving or am I going to make your child one?  Now I know that sounds harsh but I'm not talking about feeding myself (banks were not eligible for the program).  I'm talking about providing much needed nourishment for my child (my customer).  As a parent, while we may love all children, we love ours more.  

It's the same with business.  Do I want to see any business fail?  No!  But I do care more about the ones who I have a relationship with?  Yes!  Maybe the next time you go rate shopping on a loan or CD, you'll realize that the extra fraction of a percentage you gained, may have come with a cost.  Relationship > Rate.  

My POV For Businesses

Some businesses truly need(ed) this money to survive this time while others could certainly benefit from it (think back to my family receiving the stimulus check).  Who was the judge of that?  Sadly, no one.  I can't speak for all banks, but we did our best to treat everyone on a first come, first served, basis time stamping applications.  Now to be clear, as additional guidance was offered, we did request a complete application with supporting documentation to be considered.  You couldn't just drop off two incomplete pages with nothing else and expect a check in the mail.

As a banker, I sincerely have an increased respect for small business owners accompanied by a newfound disdain for the burden placed on them by government and the amount of information required by them.  I learned a great deal about reporting requirements and documentation that small business have to submit to state and federal agencies that drain them of their most precious resources - time and money.  Business either have to pay a bookkeeper or devote their time to reporting instead of producing.  

Small businesses are living organisms.  Yes, when in a life or death situation, a defibrillator may keep me from dying, but it's not sustainable.  The same is true for businesses right now.  A shock to the chest of capital may keep them from dying, but they need to be allowed to breathe - to serve their customers, to make their goods, to open their dog gone doors back up! 

In Closing

I'm done with the fear.  I'm done with the hype.  I'll keep washing my hands and will avoid people wearing masks and gloves because they are often either sick, crazy, or both.  

I know this battle has been different for all of us.  Some have lost jobs and some are losing businesses.  Meanwhile, while I have not been impacted financially, I have been impacted.  It was hard to text my wife one day asking how much more she could handle so I could keep trying to get everything done.

I was making withdrawals from my relationship with her by putting in longer hours placing an even greater burden on her with the kids home all day.  I was also having to make withdrawals from my health by skipping workouts some days or cutting them short to get to work earlier.  Not mention the added stress or waking up processing PPP loans in my sleep.  

The biggest takeaway I have from all of this is:

You cannot get ready once the storm hits.  Make a very conscious effort to invest in yourself spiritually, mentally, and physically.  Make a very conscious effort to invest in the development of your team members' skills constantly and consistently.  Once it starts to rain, it's too late to build the ark.