Small Business Thread - Advice for Navigating Covid-19

Discussion in 'The Mainboard' started by dallasdawg, Mar 18, 2020.

  1. momux

    momux AFAM Scholar
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    To follow on with this. We have gotten 0.04% of our applications approved by the SBA. The staff aug from these B4 will definitely assist pushing these things through. I've heard they're asking KPMG resources to work overnight (10 hr shifts from 6p-4a).
     
  2. NYGator

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    A business colleague of mine received this from Citibank...

    Dear Values Clients,

    Please be advise that we are doing everything in our power to get our SBA Payroll application up and running. Obviously I personally have no control over the roll out nor do I have the specifics as to what will be required to submit along with the application. I can assure you that despite the rumors of other institutions getting out of the gates prior to Citibank their applications are being declined or denied as they either weren’t submitted correctly by the applicant, but more the institution. Our decision to make sure that our link is set up correctly and compliant with the Federal Government will certainly expedite the process resulting in a quicker payout. With that said I understand your frustration and willingness to move forward quickly for the benefit of your businesses and your employees. These are challenging time and I pledge to continue to do the best I can to keep everyone in the loop and get the application link out as soon as I receive it. Thank you again for being such loyal Citigold clients and God Bless.
     
  3. NYGator

    NYGator Well-Known Member
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  4. momux

    momux AFAM Scholar
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    Shift the blame I guess.
     
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  5. gowolverines8

    gowolverines8 Well-Known Member


    Big banks and sba are equally terrible
     
  6. Deuce

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    I don't work for a big bank, but this isn't a case of both sides bad (Yes big banks can be very bad). This is a case of one side not providing clear direction to other while forcing them to do something.

    We have begun funding the PPP loans. We have several thousands of more that are waiting

    To be told on Tuesday last week that you need to take applications on Friday, change the applications and rules 100x between then and Friday, and fund in less a week is pretty damn good. The SBA and Treasury have done zero favors to anyone in helping get said money.
     
  7. Oranjello

    Oranjello Well-Known Member
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    This seems to simply be a copy and paste of the interim final rule, correct? The one that is somewhat at odds with the FAQ that is now posted to SBA's website re: 100k cap (question 7): https://www.sba.gov/sites/default/files/2020-04/Final PPP FAQs 4-7-20.pdf

    Reading closer, looks like they narrowly interpreted "compensation" to mean only salary or wages, and not the commonly accepted term that view compensation as the entire comp package (salary plus benefits)
     
  8. NYGator

    NYGator Well-Known Member
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    It was an update from my bank, and he referenced it as new.
     
  9. DUCKMOUTH

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    The backlog and process is cumbersome for banks and clients.

    It’s a fucking shit show
     
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  10. NYGator

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    I saw them reference over 3 million submissions today.
     
  11. dallasdawg

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    hoping 2 of those were mine. my banker let me know this morning that my applications had cleared their underwriting and were submitted for approval
     
  12. NYGator

    NYGator Well-Known Member
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    Question on PPP Forgiveness...

    1) does the 8 weeks of forgiveness start the date the loan gets funded, or (2) do we have an option of choosing when it starts based on when the funds start being used.

    Based on the section 2.O, which reads: "The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan."

    That said, that seems rather arbitrary as you have no idea when you will receive the loan, so you can't take the actions that the loan prescribes in an efficient manner, like hiring back employees if you furloughed them. I think it makes more sense that you can account for spend over any specific 8 week period up to the expiration date of the forgiveness period.

    Edit: Someone just pointed out to me that we sign the loan once we get full approval, so we do control when the loan is delivered. I am concerned int hat if I don't sign right away we could put some risk on the table. I think we already figured out ways to make it entirely forgiven though. In fact we figured out how to get our cash-flow out until November now without firing anyone and without any significant new orders. It also seems as though things are picking up some for us.
     
    #863 NYGator, Apr 9, 2020
    Last edited: Apr 9, 2020
  13. DUCKMOUTH

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    1099s open up tomorrow. How in the fuck is the forgiveness going to work on those? I’m I missing something?
     
  14. Deuce

    Deuce Well-Known Member
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    The guidance we have gotten is that: funding takes place within 5 days of approval and the forgiveness starts from funding.
     
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  15. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    good question. i’m putting together packets for my 1099 nurses and would like to know what to tell them
     
  16. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    also, are 1099 calculations based purely on 1099-misc from 2019? or is that a rolling 12 mo too?
     
  17. DUCKMOUTH

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    I haven’t seen any official guidance on all that. Everyone and most bankers at multiple banks are scratching their heads on it
     
  18. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    probably was said yesterday but yes. Treasury announced yesterday you have to fund within 10 days of approval. Changes the strategy some business owners were hoping for to push closing back. Dentist for example
     
  19. gowolverines8

    gowolverines8 Well-Known Member

    Senator just confirmed EIDL are capped at 25k due to lack of funds, would be nice if the government started paying 5% of the attention to that program as they are PPP.
     
  20. dallasdawg

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    you’ve got to think EIDL is a lot more important to a pretty substantial amount of companies. they may have enough cash to maintain payroll, or at least 75% of it, but the PPP does nothing for cash flows
     
  21. gowolverines8

    gowolverines8 Well-Known Member

    Yep and especially smaller companies, mainly mom and pop type businesses
     
  22. Oranjello

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    https://www.sba.gov/sites/default/f...P FAQs for Lenders and Borrowers 4-8-20_0.pdf

    See the last question
     
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  23. Oranjello

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    Yeah I figured they would have released guidance by now. My friend whose wife is a real estate agent keeps making the point "when they deposit the money in her account, is that not payroll?" and I don't have an answer to that. He wants to fix up their house, which is what her payroll typically goes to.
     
  24. DUCKMOUTH

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    my guess is banks will pause tomorrow on 1099s unless we get guidance soon
     
  25. Oranjello

    Oranjello Well-Known Member
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    My friend already applied with Trustmark FYI
     
  26. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    do you know everything that he presented with the application by any chance
     
  27. DUCKMOUTH

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    interesting. My assumption is they are sitting on his app or are starting their internal processing before sending to SBA. I have no clue though
     
    #878 DUCKMOUTH, Apr 9, 2020
    Last edited: Apr 9, 2020
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  28. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    100% what’s happening imo
     
  29. Oranjello

    Oranjello Well-Known Member
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    No, knowing the friend he probably just filled out their online form after doing some back of the napkin math.
     
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  30. dallasdawg

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  31. Oranjello

    Oranjello Well-Known Member
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    That’s a private company unaffiliated with the SBA. They don’t have any more of an idea than anyone else.
     
  32. Hatfield

    Hatfield Charlie don’t surf
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    I know we don’t need any additional sadness in this thread, but got an email from our former intern today. One of the private colleges around us does a “January term” where the students can take like an easy 1 credit class or get credit for a month long internship.

    This chick interned with us and was great. Hard worker, smart, had a bunch of offers lined up....everything has fallen through. Like frantically reached back out to us if we might be hiring (we’re not) or if we could connect her. Just a sad state of affairs. I graduated college a couple years after the big hit of the recession, but these kids are entering a far worse job market than ‘07-‘08.
     
  33. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    a poster on the home board just got funded

    applied friday, approved monday. funded on thursday
     
  34. beerme

    beerme Well-Known Member
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    because I used ADPs calculations (stupidly) prior to 4/6 which were done incorrectly, so I could’ve applied for more and will ha e enough expenses that the extra money would’ve been forgiven
     
  35. DUCKMOUTH

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    I’ve funded 8 with 70ish pending. Every bank different.
     
  36. beerme

    beerme Well-Known Member
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    got our money through chase this morning - applied Friday approved Sunday night
     
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  37. NoNatty

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    we initially applied Friday. They emailed us on Tuesday saying we needed to apply again. We did, still haven’t heard back.
     
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  38. AptosDuck

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    Still getting emails from WF that we're in their queue and they'll let us know when we can submit the formal application. Haven't even heard back from the local lender that we pre-applied with as an alternate
     
  39. beerme

    beerme Well-Known Member
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    our banker was super helpful trying to navigate this. He made sure our paperwork was streamlined the way they wanted it to get it through quickly.
     
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  40. gowolverines8

    gowolverines8 Well-Known Member



    not that its a surprise but what a stupid fuck
     
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  41. (Z)

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    PPP was pretty easy for us.

    Local bank just called. We're disbursing on Monday.
     
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  42. NYGator

    NYGator Well-Known Member
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    Wait, when did you submit?
     
  43. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    officially out of cash now. this is the worst feeling
     
  44. NYGator

    NYGator Well-Known Member
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    Sorry bro. That sucks.
     
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  45. DUCKMOUTH

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    Still haven’t seen any forgiveness guidance on 1099 and sole ps.
    My bank is paused on those apps until some is issued
     
  46. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    sorry to hear this. Hope you can get it straight in time.
     
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  47. Chipper>Jeter

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    Anyone else having old employees coming out of the wood works filling unemployment claims? I just got two in the mail from employees that both quit over 12 months ago. That is some sorry fucking shit right there.
     
  48. Oranjello

    Oranjello Well-Known Member
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    Heard of that as well as unpaid interns
     
  49. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    will definitely be fine once these loans start rolling in, but losing about $60-75k in revenue while still processing payroll and utilities is just killer
     
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