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Help for troubled borrowers is on the way. But will it come soon enough?

Borrowers have a lot to lose if public policies to help paying their mortgage don’t break right. HousingWire took a deep dive into the $10 billion homeowners assistance fund and those who might be left behind.
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Jeffrey Wilen

The Covid-19 pandemic hit Jeffrey Wilen and his family hard.

In July 2020, he lost his job as an editor at a consulting firm for spa professionals. By that point, his wife, fearing infection, had already decided to resign as a part-time assistant teacher to stay home with their three kids. 

It took Wilen, 49, about two months to get a new job. In September 2020, he landed a job as a service advisor assistant for an auto repair shop.

“I’m still in this job, but I’m not making as much as I was at the previous one,” he said.

Since the pandemic first hit, the family’s annual income decreased from around $80,000 to $41,600, according to Wilen. While they wait for the best moment for his wife to return to work  – they are still afraid of new Covid-19 variants – he is hustling at side jobs after his shift at the auto repair shop.

“What’s happened is that the economy has changed a lot. Gas is more expensive. Groceries are more expensive,” he said. “I’m trying to make an extra anywhere.”

Wilen is working with food delivery, which guarantees between $100-200 per week. A $250 monthly child tax credit from the federal government for each child also helps the household. But will end in December.

While the family’s income has been cut by almost half and inflation has increased their expenses, Wilen’s primary concern is his mortgage. 

In 2015, the family paid $250,000 for a 2,900-square-foot house in Ormond Beach, Florida. The four-bed property was perfect for the pre-Covid reality, but it is challenging to afford right now. 

When Wilen lost his job last year, he stopped paying his $1,460.10 mortgage for 12 months, and the county where he lives paid three months of his mortgage bill as part of an assistance program. “But all my forbearance is done, and I can’t get any more,” Wilen said. He is afraid of losing his home.

Wilen’s case illustrates how some Americans have a lot to lose if policies designed to help mortgage borrowers don’t break right. 

Governments and servicers were both quick to launch forbearance programs for over seven million mortgage borrowers during the pandemic, realizing the historic challenge borne out of the Covid-19 pandemic. The fast and efficient response worked – a foreclosure crisis has not materialized, and most experts do not believe there’s a threat of a huge wave of foreclosures in the cards.

But housing experts say a new phase of financial aid needs to be issued imminently to help those who are exiting forbearance and are still struggling to pay their mortgages.

Black Knight data shows that roughly 450,000 forbearance plan expirations are expected to occur through the end of 2021, representing more than a third of active plans.

“We are concerned that we are going to see more and more people in this same position in the coming months: many homebuyers who lost jobs are back to work but making less money,” said Jackie Boies, senior director at Money Management International, a nonprofit that provides credit and debt management counseling. “They’ve had a manageable budget due to mortgage forbearance. Now mortgage forbearances are coming to an end, and many homebuyers will not be able to pay their mortgage again.” 

The unemployment rate checked in at 4.2% in November 2021, down from 14.8% in April 2020, according to the U.S. Department of Labor. Still, some borrowers haven’t regained employment or are now under-employed. 

“Just because there are a lot of jobs out there doesn’t mean there are jobs that are paying as well as they were before the pandemic,” said Stephanie Moulton, professor at the John Glenn College of Public Affairs from the Ohio State University and an expert in public policy implementation.

A $10 billion hope      

The biggest hope for borrowers who can’t pay their mortgages – apart from winning the lottery – is the Homeowners Assistance Fund (HAF) program. A component of the American Rescue Plan Act, it was approved by Congress in March. The fund allocates $10 billion to prevent homeowners from falling behind on their mortgage, losing utility services, or being displaced. 

The money can be used for mortgage payment assistance or mortgage principal or interest rate reductions. It can also cover utility payments, including electric, gas, home energy (firewood and home heating oil), water, and wastewater. 

Homeowners have to document and describe their financial hardship, which has to have occurred after Jan. 21, 2020. They also must have incomes that do not exceed 150% of either the area median income or 100% of the median income for the United States, whichever is greater. According to the latest U.S. Census Bureau data, the median household income in Volusia County, where Wilen lives, is $49,494, so he would be a target. 

States and eligible territories are tasked with administering the money, subject to the U.S. Department of the Treasury approval. Each state must also submit its own HAF plans to the Treasury for approval. As of October, 10% of the funds have been distributed upfront for states to initiate pilot programs. But few territories and states received a green light to implement their complete plans.

“Right now, it is the time to get the HAF implemented,” said Moulton. “Forbearances are starting to expire. If we go much beyond Jan. 1, it might be too late for some borrowers.”

According to consumer protection lawyers, advocates, and housing counselors, the expectation is that some state programs will be up and running sometime in the first quarter of 2022. After the plans’ approval, borrowers need to submit applications to the states, more complicated than the automatic forbearance plans provided to millions after a phone call to their servicers. Additionally, states will have to select and reach out to borrowers, which can take some time.  

Mortgage servicers are negotiating uniform procedures and documents with states, so their interactions can be faster when paying borrowers’ debts.

“Servicers don’t want to get in a position where the customers think they are deciding who gets the money or not,” said Dana Dillard, principal advisor at Housing Finance Strategies, a consulting firm for the mortgage and servicing industry. 

Up to the task?   

The recent experience with state distribution of rental assistance and unemployment insurance is perhaps a preview of the challenges ahead.

Between January and July, states and local governments spent only 20% of the $25 billion in emergency rental assistance funds available in the first round of the program, according to the Treasury Department. The Treasury launched new measures in August to reduce processing delays – for example, allowing self-attestation when other documents were not available.

Even by October, states such as Arizona (5%), Ohio (14%), and Florida (39%) distributed only a small share of their resources under the first phase of the program, according to the Treasury. Some states decided to prioritize payments via counties, which also had challenges in the distribution. In Arizona, counties distributed, on average, 71% of their funds, while in Florida the average was 58% and in Ohio, 51%. The Treasury estimates that at least 80% of the ERA’s funding will be spent or obligated by year-end.

States, overwhelmed with claims and understaffed, also had problems paying unemployment insurance. In some cases, people waited more than three months before they received a check, forcing them to make the choice between a number of terrible decisions – paying credit cards, buying food, making mortgage payments, or getting needed prescriptions. 

The Department of Labor also reported that as of Sep. 27, states and territories had identified $18.3 billion in overpayments made in the federal programs (regular and those related to the CARES Act) from April 2020 through June 2021, including $1.5 billion resulting from fraud, which reduces trust in programs.

The U.S. Government Accountability Office (GAO) is examining the implementation of the programs, including the implications of high claims volumes on the timeliness of benefit payments. GAO has interviewed 10 states (Arizona, Florida, Louisiana, Massachusetts, Michigan, Minnesota, New York, North Dakota, Wisconsin, and Wyoming) and plans to complete this work in the late spring of 2022.

In Florida, where Wilen lives, the Department of Economic Opportunity (DEO) also had delays and overpayment related to the state unemployment assistance program. “Many claimants, believing they were fully and accurately applying for Reemployment Assistance within the bounds of the law, received overpayments from the state,” Gov. Ron DeSantis wrote in a letter to the DEO on Oct. 15 recognizing the problem.

He requested the state’s Chief Financial Officer to indefinitely defer all referrals to collection agencies for all non-fraudulent overpayments incurred during the pandemic. The DEO told HousingWire that the state is not collecting the overpayments to ensure claimants do not experience adverse impacts to their credit scores. Also, the DEO said it is implementing 20 projects to modernize its systems, and 97% of all eligible benefits requested before Oct.15 for state assistance have been paid to claimants.

This same department will be responsible for allocating more than $676 million related to the HAF program in Florida. The state submitted the plan on Aug. 20 for review and approval. “Once the HAF Plan is approved, DEO will implement the program,” the DEO wrote to HousingWire. 

The first state to have the plan approved in November, New York, will cover up to $50,000 per household. “As we focus on our post-pandemic economic recovery, we need to do everything in our power to help New Yorkers stay in their homes,” Gov. Kathy Hochul said in a statement. 

The fund will distribute nearly $539 million to assist homeowners at the most significant risk of foreclosure or displacement in the state. According to the NYS HAF website, they expect to receive significantly more applications than can be funded by the program. The website explains that applications will be processed in the order they were received, and it does not guarantee financial assistance. 

Targeting the needy

Money for the program is short, so it is crucial to precisely target those who need assistance most. 

Updated Black Knight data shows that, as of the end of October, there was $58 billion in past-due mortgage principal, interest, taxes, and insurance on first-lien mortgages, down from $64.5 billion at its peak in February 2021. The figure for October is $26 billion above pre-pandemic levels, but experts say most borrowers who missed payments will get back on their feet through loss mitigation programs with lenders.  

“There’s a mismatch of the need and available resources. Policymakers are going to face trade-offs, and they’re going to have to make decisions [about how to distribute the money],” said John Walsh, a research analyst in the Housing Finance Policy Center at the Urban Institute. The institute has created a dataset that includes homeowners’ demographic and income characteristics, assessing foreclosure risk in counties, so policymakers can better target HAF dollars. 

Housing policy experts worry that the Covid-19 pandemic exacerbates the inequality in housing ownership – they indicate the HAF program as one way to mitigate this risk. According to data collected by the Census housing pulse survey, the share of white respondents not caught up on their mortgage payments in September was 5%, compared to 12% among Black and 12% among Asians. 

“We know that the people who are still in forbearance right now, the people that have been struggling to get out of forbearance, are disproportionately people with FHA loans, and they’re disproportionately Black and Brown,” said Moulton. According to the Federal Housing Administration, their share of lending to Black borrowers is around 17%, compared to 6% for the rest of the mortgage market. 

To help the most vulnerable population, Tara Roche, research manager for the Pew Charitable Trust, said that HAF will be available to those who are using alternative financing, such as land contracts (agreements directly between sellers and buyers) and loans secured by manufactured homes. These contracts lack protections that accompany mortgages, such as forbearance plans and foreclosure procedures. 

“We reviewed 36 state HAF plans that are publicly available, and we found that so far 21 states have included both groups: residents living in a manufactured home secured by a loan and homeowners with land contracts. And we found that 30 states had included at least one of those groups,” she said. Results, however, can change as many plans analyzed are drafts or preliminary programs. 

The HAF rules stated that any amount not made available to homeowners that meet income-targeting requirements must be prioritized for assistance to socially disadvantaged individuals, with funds remaining after such prioritization available for other eligible homeowners.

“The main challenge is to reach the population that is designated by statute, and the population who you think is most in need of this type of assistance,” said Meg Burns, executive vice president at Housing Policy Council. According to Burns, a simple program that is standardized across the states will help the most people, as complexity can be a barrier to success. 

If the program does break right, the benefits for the housing market are clear. 

Looking to the past, a study by six housing policy experts and economists – from universities such as Washington University, the Ohio State University, and the University of North Carolina – shows that the Treasury Department spent $45 billion to assist homeowners in the Great Recession. The most significant share went toward the Home Affordable Modification Program (HAMP), which launched in 2009.

But solutions for mortgage borrowers were focused on permanent loan modifications, with mixed success. 

In 2010, the Treasury launched the Hardest Hit Fund (HHF) program. The most significant subsidy was for mortgage payment assistance, paying homeowners’ loans until they secured employment or up to a typical maximum of 12 to 24 months. The HHF, which is based on mortgage payment relief, served as an inspiration to the HAF program.  

According to the study, HHF assistance leads to a 40% reduction in mortgage default and foreclosure probability through four years post assistance. The program prevented $8.3 billion in financial loss to lenders, investors, and governments during the Great Recession.

“It is important to consider that now the housing market is much stronger than it was during the Great Recession: borrowers can sell their home, they’re not as likely to be underwater,” Moulton, one of the study’s authors, told HousingWire. 

Sell, and go where?

But some troubled borrowers resist the idea of selling their homes, downsizing or becoming renters. 

Wilen, for example, has an outstanding balance as of Sept. 16 of $165,651.25 (his past due amount related to the forbearance is $20,095.95). His house value is estimated between $390,000 and $440,000, according to various automated valuation models. But, due to rising house prices in his area, he is afraid he will not find a house to accommodate his family adequately.

In Volusia County, where he lives, home prices rose by 12.6% in the second quarter, compared to a year earlier, according to the National Association of Realtors (NAR). In addition, there are costs associated with moving to a new place.

“The situation is frustrating. It is not my fault that I lost my job because of Covid,” he said. 

Since his forbearance plan expired at the end of September, Wilen has talked to his servicer, Lakeview, to find a solution. This was the first time he had to negotiate the mortgage in six years, and the option offered was a loan modification, he said. Lakeview didn’t answer phone calls and emails to comment on the case.

Wilen is afraid he will not pay even a lower mortgage bill. “This month [November] has been a struggle just making regular bill payments. My car payment was late for the first time because I couldn’t afford it. It was either the water bill, the power bill, the food, or the car,” he said. “If they tell me, ‘You’re gonna have to start paying $1,000 a month for a mortgage,’ I’ll be honest: I don’t know how I’m going to do it with my current income.”

According to counselor Jackie Boies, from the Money Management International, borrowers exiting forbearance have several options. If they can pay a mortgage, they can benefit from a loan modification or refinance, which will bring the mortgage current and lower the monthly payment.

Borrowers who can’t afford a modified payment will need to consider increasing their income with a second job, selling their home and downsizing considerably, and potential sale lease-back options.

Regarding Wilen’s situation, she said: “Truth is if he doesn’t want to be homeless, he’ll have to pay a mortgage payment or rent. Typical loan modifications might bring his payment down to just under $1,000, but he needs to tackle this now and not delay. Once he’s significantly delinquent, he has fewer options.”

She advises borrowers exiting forbearance and struggling to pay their mortgages to meet with a housing counselor. “There are a lot of emotions tied to your home. Part of the job of the counselor is to help that consumer set aside the emotional pieces and think about their overall financial picture.” 

Boies adds: “A counselor can also help borrowers look for resources. The difficulty is that resources vary greatly in cities, states, counties. Some have funds, but some don’t.”

The post Help for troubled borrowers is on the way. But will it come soon enough? appeared first on HousingWire.

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Report: Pfizer, NIH Discussing Study of Longer Paxlovid Dosing Regimen

With increasing concerns about COVID-19 reinfection, Pfizer and the National Institutes of Health are discussing potential studies regarding a longer treatment…

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Report: Pfizer, NIH Discussing Study of Longer Paxlovid Dosing Regimen

With increasing concerns about COVID-19 reinfection, Pfizer and the National Institutes of Health are discussing potential studies regarding a longer treatment period with the antiviral medication, Paxlovid.

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and scientific adviser to the White House, said the plan for the new studies could come over the next few days, Reuters reported this afternoon. During a White House briefing on COVID-19, Fauci pointed out that the rising cases of COVID-19 driven by an Omicron sub-variant are increasing the use of Pfizer’s Paxlovid. So far, more than 660,000 courses of Paxlovid have been administered across the U.S., Reuters said.

However, there is a growing concern that some patients are not shaking the virus as quickly as expected following a treatment regimen of the antiviral. Some continue to experience symptoms, or see a recurrence of their COVID-19 symptoms, following treatment with Paxlovid, Reuters said. Currently, there is no clear indication on the number of patients who are experiencing such a recurrence, or whether or not it is due to the variant type of COVID-19. But, the numbers appear to be enough to warrant such a conversation between America’s top infectious disease expert and Pfizer.

Paxlovid was granted Emergency Use Authorization from the U.S. Food and Drug Administration in December. It was granted EUA for the treatment of high-risk adults and pediatric patients 12 years and older who have been diagnosed with COVID-19 and are at serious risk of hospitalization. A combination of nirmatrelvir and ritonavir tablets, during clinical trials, Paxlovid significantly reduced the risk of hospitalization or death by 89% compared to placebo in non-hospitalized, high-risk adults with COVID-19 within three days of symptom-onset. However, even then, there were cases of a recurrence of symptoms in some clinical trial patients.

Pfizer Chief Executive Officer Albert Bourla has suggested that those patients who experience a recurrence of symptoms should undergo a second round of treatment with Paxlovid. As BioSpace previously reported, Bourla said if symptoms reoccur, “then you give a second course, like you do with antibiotics, and that’s it.”

However, the FDA has balked at that suggestion. Dr. John Farley, director of the FDA’s Office of Infectious Diseases, argued that there is no evidence of benefit for a longer course of treatment, such as 10 days instead of the current five days of administration, or a second five-day round of treatment.

Mark Van Scyoc/Shutterstock

While Pfizer may undertake these additional studies, as BioSpace reported earlier Wednesday, the pharma giant has so far reportedly resisted requests to use Paxlovid in combination studies. The nonprofit Drugs for Neglected Diseases Initiative said that Pfizer rejected a January request to offer doses of Paxlovid to be used in a study alongside an inhaled steroid in Africa.

Also Wednesday, Indianapolis-based Eli Lilly said studies have confirmed that bebtelovimab, the company’s monoclonal antibody against COVID-19, is effective against all variants of the SARS-CoV-2 virus, including BA.2, which is currently the dominant strain in the U.S., Seeking Alpha reported.

 

BioSpace source:

https://www.biospace.com/article/pfizer-nih-in-talks-to-begin-study-of-longer-paxlovid-dosing-regimen

 

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Missouri Bill Prevents Doctors Being Disciplined If They Prescribe Ivermectin Or Hydroxychloroquine

Missouri Bill Prevents Doctors Being Disciplined If They Prescribe Ivermectin Or Hydroxychloroquine

Authored by Naveen Athrappully via The…

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Missouri Bill Prevents Doctors Being Disciplined If They Prescribe Ivermectin Or Hydroxychloroquine

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

Missouri lawmakers passed legislation that prevents state licensing boards from disciplining doctors who prescribe ivermectin and hydroxychloroquine.

Missouri Gov. Mike Parson signs a bill in Jefferson City, Mo., on May 24, 2019. (Summer Balentine/AP Photo)

Sponsored by Rep. Brenda Kay Shields (R-Mo.), HB 2149 also bars pharmacists from questioning doctors or disputing patients regarding the usage of such drugs and their efficacy.

With a convincing 130–4 vote in the House, HB 2149 passed both chambers on May 12 and currently heads to the office of Gov. Mike Parson to be potentially signed into law.

The board shall not deny, revoke, or suspend, or otherwise take any disciplinary action against, a certificate of registration or authority, permit, or license required by this chapter for any person due to the lawful dispensing, distributing, or selling of ivermectin tablets or hydroxychloroquine sulfate tablets for human use in accordance with prescriber directions,” reads the draft of the bill (pdf).

It adds, “A pharmacist shall not contact the prescribing physician or the patient to dispute the efficacy of ivermectin tablets or hydroxychloroquine sulfate tablets for human use unless the physician or patient inquires of the pharmacist about the efficacy of ivermectin tablets or hydroxychloroquine sulfate tablets.”

Critics of the bill have noted that the Food and Drug Administration (FDA) has not given approval for usage of the drugs. Ivermectin and hydroxychloroquine have been divisive drugs and politically polarized throughout the pandemic.

“But, nevertheless, the Missouri legislature has chosen to ‘own the libs’ by issuing a gag order against every pharmacist in this state from offering their medical opinion on taking either one of those medications—even if it could kill their patient,” wrote former Democratic nominee Lindsey Simmons in a May 12 Twitter post.

Although 22 countries across the world have approved the use of ivermectin in treating COVID-19, the FDA maintains that the current data show the drug to be ineffective. Large doses can be dangerous, it says.

A recent study published in the International Journal of Infectious Diseases analyzed a national federated database of adults that compared ivermectin with the FDA-approved COVID-19 medication, remdesivir.

After using propensity score matching and adjusting for potential confounders, ivermectin was associated with reduced mortality vs remdesivir,” researchers wrote. “To our knowledge, this is the largest association study of patients with COVID-19, mortality, and ivermectin.”

According to The Associated Press, Missouri state Rep. Patty Lewis, a Democrat, agreed to the bill to satisfy a group of conservatives in the Senate. She added that the bill will not change anything significantly as medical boards do not engage in punishing doctors who prescribe drugs legally.

Tyler Durden Wed, 05/18/2022 - 23:25

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“They Shut Us Down”: Michigan Businesses Sue Whitmer For Losses Due To COVID Lockdowns

"They Shut Us Down": Michigan Businesses Sue Whitmer For Losses Due To COVID Lockdowns

Authored by Steven Kovac via The Epoch Times (emphasis…

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"They Shut Us Down": Michigan Businesses Sue Whitmer For Losses Due To COVID Lockdowns

Authored by Steven Kovac via The Epoch Times (emphasis ours),

A coalition of five bowling alleys and family entertainment centers is suing Michigan’s Gov. Gretchen Whitmer, a Democrat, for losses incurred due to her mandatory COVID-19 shutdowns in 2020.

Michigan Gov. Gretchen Whitmer listens to Democratic presidential candidate Sen. Kirsten Gillibrand (D-N.Y.) in Clawson, Mich., on March 18, 2019. (Paul Sancya/AP)

Michigan Dept. of Health and Human Services director Robert Gordon is also a defendant in the case.

The plaintiffs allege that the shutdowns imposed by Whitmer and Gordon were a “taking” of their businesses without just compensation in violation of both the state and the U.S. Constitution.

The case has been winding its way through the federal courts since January 2021.

Fred Kautz runs the lane oiler at Kautz Shore Lanes in Lexington, Mich., on May 13, 2022. (Steven Kovac/The Epoch Times)

The coalition lost the first round of the legal battle when the U.S. District Court for the Western District of Michigan ruled against it.

Oral arguments were recently held before a three-judge panel of the US Court of Appeals Sixth Circuit.

Plaintiff’s chief counsel David Kallman told The Epoch Times after the appeals court hearing, “The oral arguments from both sides were vigorous. The judges asked a lot of questions. It was the kind of proceeding that makes you proud to be a lawyer.

“Even the defense acknowledges that we are presenting ‘novel’ arguments.

“Michigan is the only state in the nation where a governor’s public health emergency powers were overturned as unconstitutional.

“If we lose in the court of appeals, we will take this case to the U.S. Supreme Court.”

Scott Bennett, executive director of the Independent Bowling and Entertainment Centers Association, told The Epoch Times,

“The governor’s actions were devastating to our industry.

“Things went from ‘two weeks to slow the spread’ to indefinite shutdowns.”

Bennett said that the forced closures were not based on solid scientific proof that bowling alleys and family entertainment centers would spread the virus any more than the Walmart stores or the GM plants that were allowed to remain open.

“They were allowed to operate with hundreds and even thousands of people in them but we had to shut down. We feel our industry was unfairly singled-out.

“We cannot stand for a repeat of such arbitrary treatment and don’t want the people of Michigan to forget what was done to them.”

With the recent uptick in COVID cases and the approaching mid-term elections, Bennett said his members that survived the 2020 shutdowns feel like it can happen all over again.

“It’s like operating day-to-day with a hammer held over your head. The uncertainty is altering business plans. The value of our businesses is dropping through the floor,” Bennett said.

Brian and Mindy Hill work the counter at their bowling alley in Imlay City, Mich. on May 13, 2022. (Steven Kovac/Epoch Times)

Fred Kautz, the proprietor of Kautz’s Shore Lanes in Lexington, Michigan, started working in the family business when he was 13.

The business has 12 bowling lanes, a bar, an arcade, a restaurant, and living quarters upstairs.

“We’ve owned this place for 42 years. For me and my family, it’s more than a place to work. It’s a way of life. And it has become an institution in our community—a real gathering place,” said Kautz.

He said he is still smarting from what happened after Whitmer’s executive actions were ruled unconstitutional by the Michigan Supreme Court in the fall of 2020.

“We got a little reprieve. We thought we were in the clear until she came back with another round of forced closures, this time under the authority of the Michigan Department of Public Health.

The first 30 days knocked us right on our butts. But we were willing to cooperate, to do our part. We were all scared and we did not want to see harm come to anybody.

We lost a lot of money at the time. We are coming back slowly, but our overall revenue is still down 20 percent from pre-pandemic days. That’s hard to make up.

“In the spring of 2020, I tried to do what was recommended and go along. Never again!

“If my Dad was still alive, he’d have never closed at all,” said Kautz.

Brian and Mindy Hill, owners of I.C. Strikes, a 16-lane bowling alley, bar, and snack bar in Imlay City said their business was hit hard by the shutdowns.

Brian was the town barber for 25 years, before purchasing the bowling alley where he learned to bowl as a child.

“We took over in December 2018. We’d saved up money to buy this place and make some upgrades. When COVID hit, we were forced to close down. It took all the money we saved for improvements just to survive,” said Brian.

The Hills said they never thought they’d see the day when their own government could do something like that to them.

Mary Bacon, assistant manager of Jump City, a family recreation center, cleans an arcade machine in Imlay City, Mich., on May 13, 2022. (Steven Kovac/The Epoch Times)

They shut us down. They took away our livelihood with no end date in sight. Then they wanted to loan us money. Think about that. They first put us in a situation where we had zero income to pay our previous debt. And then they wanted to loan us more money.

“Lots of small business people lost their businesses but kept their debt. It ruined them,” said Brian.

The Hills did apply for and receive a Small Business Administration loan at 3.25 percent interest for 30 years, and they participated in the Paycheck Protection Program which helped their business survive.

Up the road from the Hill’s bowling alley is Jump City, a large indoor recreation center offering an array of bouncy houses and arcade games for children.

Assistant manager Mary Bacon told The Epoch Times, “We lost a lot of business. We were forced to close for 15 months and had to make our payments with no income.”

Bacon remembers the morning of March 16, 2020, when many area businesses were gearing up for big St. Patrick’s Day celebrations.

“By afternoon everybody had to close. All that food went to waste.

“The shutdown was supposed to be for a couple of weeks. Nobody foresaw it would drag on for a year and three months.

“Oh, they said we could open again, but they so severely restricted the number of customers that we lost all of our big birthday parties. With so few kids allowed in, we couldn’t operate. We were losing too much money.”

Bacon said people are coming back to the center but are still scared, even though the games and bouncy houses are continuously cleaned and sanitized.

Navaeh Smalstig, 8, climbs out of a bouncy house at Jump City in Imlay City, Mich., on May 13, 2022. (Steven Kovac/The Epoch Times)

Before the pandemic, Danny Brown owned a roller rink in Grand Blanc and Owasso, two south-central Michigan towns.

“The lockdowns forced us to sell the Owasso rink for less than half of what we paid for it. We will be trying to make up our loss for years to come.”

Brown, who is a plaintiff in the lawsuit, told The Epoch Times, “To keep going I had to decide to triple our debt. Since the shutdown, I am three-quarters of a million dollars deeper in debt.

“Small businesses put everything on the line. All of our personal and family money. I am personally responsible for our debt. If I die my children will have to pay it.”

Brown said Michigan’s government acted without a real understanding and regarded the state’s small businesses as “nonessential throwaways.”

“One of the reasons we filed suit is to push the government to think differently,” he said.

According to Brown, family entertainment centers like skating rinks, bowling alleys, arcades, pool halls, miniature golf, and go-cart tracks have been nearly wiped out.

“A few years ago, there were 3,500 roller skating rinks in the United States. Now there are 700. There were five rinks in Genesee County, now there are two.” he said.

Brown attributes the decrease to years of ongoing government mandates and interference that led up to the COVID-19 lockdowns.

“They took, they stole our businesses!” he said.

Donn Slimmen, another plaintiff in the case, owns Spartan West Bowling in the west Michigan resort town of Ludington.

“The lockdown just about killed us. It was 14 to 15 months of agony. Our bank payments and utility bills didn’t stop. We went from being two to three months behind to more months behind.

“We entered into survival mode. We ate a lot of pork and beans and hotdogs. We’re still trying to work ourselves out of the hole. By the end of this summer, we might be solvent again.

“We were lucky to survive. We are still hanging on by threads,” said Slimmen.

Along with 16 bowling lanes, Slimmen operates a full-service restaurant.

It’s never come back. Pre-pandemic, we’d serve 200 customers at an ordinary Friday fish fry. Now our best night is 100.

“Our restaurant went from a thriving seated-guest business to a take-out operation grossing only two to three percent of the seated sales.

“We were spending $400 to take in proceeds of $100.

“The politicians and bureaucrats don’t understand. They never cleaned a toilet seat or climbed into a bowling machine to fix it,” said Slimmen.

Slimmen blames Gov.Gretchen Whitmer for the plight of his community and the state.

“You didn’t see Republican governors closing businesses. Their states did so much better.

“Drive through downtown Ludington or Muskegon and look at all the boarded-up storefronts. So many places are out of business. Michigan is in terrible shape,” Slimmen said.

The Tomassoni family has been in the bowling business for 84 years in the western Upper Peninsula town of Iron Mountain, Michigan.

We had to close bowling and our banquet facility a total of 161 days in two different periods of time in 2020. After the second shutdown, we could operate at 25 percent occupancy and only during restricted hours. No wedding receptions, no special events. It was a disaster.

“It ripped my heart out. I am so bitter towards my government,” said owner Pete Tomassoni.

Tomassoni’s business suffered further because of its proximity to Wisconsin which is only minutes away.

“Wisconsin closed for just 30 days. For the most part, they were wide open. That really hurt us.

“Our governor was picking and choosing which of our state’s businesses could operate. To force a business to close with no notice and without proven science is straight out wrong.

“I think that she came down so hard on small business because we, by and large, lean to the right.

“The state dangled the threat of yanking business licenses to keep people in line.

“Some of our businesses tried to defy the state and stayed open

Tyler Durden Wed, 05/18/2022 - 21:25

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