If a restaurant is making $2m/y gross, with a 5% profit margin, is $100k/yr profit.
If they need to take a loan to cover 3mo of missing revenue, that's $500k. If that loan is an _amazing_ 0 interest over 5 years, the owner basically gets to keep his business name, for 0 profit over 5 years.
How is this any better than letting the business go bankrupt, starting a new one next year when the dust settles, and working it back up to profitability in < 4 years?
If they need to take a loan to cover 3mo of missing revenue, that's $500k. If that loan is an _amazing_ 0 interest over 5 years, the owner basically gets to keep his business name, for 0 profit over 5 years.
How is this any better than letting the business go bankrupt, starting a new one next year when the dust settles, and working it back up to profitability in < 4 years?