You are exactly right. In fact, I know of a few businesses that actually had MORE business (wholesalers), and the CEO of one told my friend that he was just going to use the money to buy his wife a new Porsche. This is anecdotal for sure, but there is no reason why firms wouldn't rely on free money as long as they are amoral enough.
If I had implemented the plan, I would have just created a program where the program only covered a % of the wages (say 80% instead of 100%) and mostly only for people who were not able to work. Of course, that brings other problems, but there is a middle ground somewhere in there.
And I know a business owner who is shopping for a new house after getting a PPP “loan”. Sure, PPP money is supposed to be used for payroll. No problem, one can indeed use PPP money for payroll 100%. But then use the business revenue, 90% of which would normally be used for payroll, to take out a nice bonus and buy a house.
If I had implemented the plan, I would have just created a program where the program only covered a % of the wages (say 80% instead of 100%) and mostly only for people who were not able to work. Of course, that brings other problems, but there is a middle ground somewhere in there.