Running a small business is hard work.
Cash flow is tight; time is in short supply.
When there’s just not enough in the bank to cover payroll, the easiest loan in town is from the Bank of Uncle Sam.
There’s no application, no review, no waiting.
You just give employees their checks, net of the amounts withheld. You can repay the withheld amounts when cash flow is better, you tell yourself.
Up until now, that manoeuvre was costly and the financial consequences unavoidable. Now, in California, it’s also criminal. [Read more…]