Small Business Thread - Advice for Navigating Covid-19

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

  1. NYGator

    NYGator Well-Known Member
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    I don't know what you mean by "that is" within the context of his email. I am not relying on this guy. Like I said, the thing I found of interest is the first part with regards to forgiveness start date confusion. DUCKMOUTH posted earlier that the 10 day period could impact forgiveness and I suspect there are some rules that still need clarification for that.
     
  2. NYGator

    NYGator Well-Known Member
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    Agreed. See my post above. That was my point. It will be l clarified and I suspect they will understand the unintended consequences of too hard a line on those details.
     
  3. Oranjello

    Oranjello Well-Known Member
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    There were multiple inaccuracies in the guy's email
     
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  4. NYGator

    NYGator Well-Known Member
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    Like I said, I wasn't relying on that email. I just was adding the context for Dallas.
     
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  5. Oranjello

    Oranjello Well-Known Member
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    I think you may be conflating loan forgiveness with the 10 approval period. I can't find the 10 day rule but have admittedly haven't looked that hard. My gut says the 10 day issue is an internal bank/SBA issue rather than anything relating to forgiveness. As in, if they fail to disburse the funds within 10 days, you may have to begin the approval process again, which is impossible now since the funds are gone
     
  6. NYGator

    NYGator Well-Known Member
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    I am reacting to this post that was made on the previous page. I had no concerns about the 10 day period impacting forgiveness until this post was made. I am not sure what he is referring to yet, but that is why I offered that first paragraph as a possible explanation for it.

    DUCKMOUTH said:
    Ask you banker of if it the forgiveness is in jeopardy if funded after the the the 10 day windows. Feel free to DM me your cell number and I’ll call and explain.
     
  7. Oranjello

    Oranjello Well-Known Member
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    Friend who applied on behalf of his independent contractor wife on April 9 just got the call that his application was approved. Banker said he was one of only a handful of IC's they were able to get through
     
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  8. Struggler

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    No need. I’ll take the loss until the administrator changes the terms again. (They will)
    Not trying to say that all employers are going to be fraudulent with these loans. Borrowing as much as they can as cheaply as they can is just business. The PPP act says to take the maximum they can. That maximum is my complaint.

    Any overage not spent is not stimulating the economy. Employers just sitting on that money. There are other employers unable to receive funds as of yesterday.

    My employer could get around $5m. 90% of their employees are non essential/unable to work from home during at least half the 8 week window here in CA.
    That is just one PPP loan that removes millions from other businesses to access.
    Page 3 from the link I posted. Middle column.
    F037D0A3-E796-47BC-85EC-4F4E5CCD0AD0.png
     
  9. Oranjello

    Oranjello Well-Known Member
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    You seem to have a fundamental misunderstanding of the program. It's not an economic stimulus. Its goal is to remove the incentive to fire employees. It's part of the CARES Act entitled "Keeping Workers Paid and Employed."
     
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  10. Gallant Knight

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    If / when I get the money I plan on using it on payroll and rent and I’m confident it will be forgiven

    y’all are digging way too deep into this
     
  11. Russellin4885

    Russellin4885 Well-Known Member
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    The only thing I'm still confused about is what is included in "transportation". Is that company gas, vehicle payments, etc.
     
  12. momux

    momux AFAM Scholar
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    I would love to see the breakdown of the $349b by lender. I have a very strong suspicion that a number of smaller banks rushed through applications with minimal oversight based on some of the funding numbers I have access to.
     
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  13. Oranjello

    Oranjello Well-Known Member
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    Yeah, there's a lot of "what ifs" people are throwing out. Use the money on payroll and rent and take the free money and run. Why complicate things
     
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  14. Killy Me Please

    Killy Me Please I lift things up and put people down.
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    What a shocker this is turning out to be a nightmare

    I hesitated because I don't know about any of this shit and I figured the banks would murder me in the long run
     
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  15. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    it sounds like your company is doing exactly what this program was designed to prevent
     
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  16. Struggler

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    Probably. No one know’s until the portion forgiven in known. What percentage of loan forgiven would be a success for the program? 30%?

    $350b to be spent in 8 weeks isn’t to be stimulative? That’s a first.

    Unfortunately, the shelter in place orders will inhibit the 8 week spend by employers. Do employers return the money not spent after those 8 weeks or use as a low rate business loan? I’m guessing the latter.
     
  17. Houndster

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    In regards to forgiveness, the biggest thing to be worried about is getting your FTEs back up to 75% of what they were during the look back periods. If you didn’t cut people then it shouldn’t be much of an issue and conducting business as usual will get your loan forgiven.
     
  18. Oranjello

    Oranjello Well-Known Member
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    What does a shelter in place order have to do with anything? Employers are literally incentivized to pay employees whether they are working or not. I know of employers mailing checks to employees who are students that have left the state. They aren't working, but the employer wants the loan forgiven so they're paying anyway.

    Struggler seems to struggle with reading comprehension
     
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  19. Russellin4885

    Russellin4885 Well-Known Member
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    We will be using the low rate loan. We are getting $200,000 and I think we should be able to get $160,000ish forgiven. We have a LOC right now with 100K on it paying 4.5% on. I'll take that $40K off the LOC and just pay the lower rate.
     
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  20. Gallant Knight

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    Yeah I didn’t fire or lay-off anyone so seems simple
     
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  21. Struggler

    Struggler Well-Known Member
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    60% of the $200k to employees? Nice. I hope all the loans can hit that.

    Not so nice. My wife’s nephew was hoping to get that $40k for his employee and eligible expenses.
     
  22. Struggler

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    This should be a quick thing to see in the economy. Hourly employees paid to stay home aren’t likely to not be thankful on social media.
     
  23. gowolverines8

    gowolverines8 Well-Known Member

    Good to hear the republicans are now starting to get behind funding the eidl program. I have said since the start, the PPP is unemployment/bandaid program while the eidl is the long term solution for many of these businesses.
     
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  24. NYGator

    NYGator Well-Known Member
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    I think many of us are trying to look at ways to have as much of it forgiven as possible. My median worker gets paid $85K, and over 1/3 of my company makes more than 6 figures, so as a result it is challenging to get it all forgiven.
     
  25. Russellin4885

    Russellin4885 Well-Known Member
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    annndddd I just got funded. Didn't even tell this story yesterday because I was so stressed out. I got a call from my banker at about 2pm that there was a problem with our status with the secretary of state. Somehow we were being listed as suspended, he said that if I didn't get it cleared up by today then I wouldn't get funded, my 10 day window would expire and I would lose the funds. I spent the next 3 hours basically begging and pleading with the department of revenue and secretary state to get this straightened out so I could be able to pay my employees. This was all over a $25 fee that hadn't been paid in 2013 by the way. I somehow got two state departments, who aren't even technically open right now to communicate together and get it resolved in one afternoon.
     
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  26. Russellin4885

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    I will say that about half my employees really don't make much. I pay them as well as I can for the industry and try very hard to have as good of benefits and work environment as I can, but I still feel it's not enough. I've earmarked that $40K for bonuses to try and show some appreciation.
     
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  27. Oranjello

    Oranjello Well-Known Member
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    https://home.treasury.gov/system/files/136/SBA PPP Loan Report Deck.pdf

    Last slide is interesting. Wonder which bank wrote $14b in 2 weeks since most of the big banks had issues. Similarly, wonder who processed 40k applications in 2 weeks.
     
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  28. Struggler

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    That’s awesome.
     
  29. MODEVIL

    MODEVIL Well-Known Member
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  30. NoNatty

    NoNatty Keyboard Cowboy
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  31. MrPibb

    MrPibb Gamso for Heisman
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    Lucky. My wife was not approved before the funds dried up. Hopefully we will get lucky on round two but I’m doubtful
     
  32. Deuce

    Deuce Well-Known Member
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    The 40k has to be a big bank or someone with lots of SBA portals.

    We had a team of a hundred plus running an overnight shift using all our SBA Logins and ended up processing between 8-9000 for $2Bish.
     
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  33. Gallant Knight

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    Banker just called and I was approved for $80k
     
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  34. MODEVIL

    MODEVIL Well-Known Member
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    I heard Chase had 60,000 applicants in the first five minutes their portal was up. Crazy.
     
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  35. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    1099 people getting fucked. Especially those that rely on one company for 1099 income.

    If they fund more banks have thousands upon thousands of apps still in queue waiting to go right to SBA. Many of which were well in before 1099s.

    my bank has 6000 approvals and over the next 24 fours will they have 4000 or 5000 more ready to go the SBA immediately. Also people still want to send apps and the answer from the bank is no new apps

    the 250 going to be gone in a day or two.
     
    #1135 DUCKMOUTH, Apr 17, 2020
    Last edited: Apr 17, 2020
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  36. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    40k apps with average of 76k and under 3billion funded. That’s has to be a fin tech company I would think
     
  37. NYGator

    NYGator Well-Known Member
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    We just received and executed our loan documents. Just waiting for the money now. I guess the 10 day window didn't matter. Thank god. So relieved. I was super stressed out the past two days.
     
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  38. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    There is some talk that if you didn’t getting funded within 10 days it could affect your forgiveness and the bank and you just have a note now for the 24 months at 1%.

    I would create a folder with all communications with your banker expressing your concern on getting docs, the funding, etc.

    this way if it fucks your forgiveness you can put the blame back on the bank and maybe force them to pay your debt off if the reason above fucks up your forgiveness.

    I’m sure this will get worked out, but be prepared just in case.
     
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  39. Deuce

    Deuce Well-Known Member
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    Pure speculation but I would imagine banks are going to be helping get loans forgiven. Most aren’t going to want capital tied up at 1% and I imagine PR/Headline/Reputation risk isn’t worth it.

    That said, who knows with this program at this point. So preparing for everything is wise.
     
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  40. Oranjello

    Oranjello Well-Known Member
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    What is this talk based on?
     
  41. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    my boss who is regional president of the banks SBA process for this. It’s been discussed as an issue within banks

    Makes no sense that it will be an issue, but better to be prepared for it just in case
     
  42. NYGator

    NYGator Well-Known Member
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    I appreciate the info and we will do that, but I see no way this happens. Why would one group of loan recipients be punished because the bank couldn't meet an arbitrary 10 day period? The SBA will forgive all loans IMO provided they follow the forgiveness procedures and provide the documentation.
     
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  43. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    I 100% agree and feel it will get worked out. Makes sense to, but based on the info I was told, best to be prepared just in case
     
  44. Oranjello

    Oranjello Well-Known Member
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    Substantively I agree, but the banks not be able to do so by law. Things outside of the 10 day window would be unlawful, in other words.

    Doubt it becomes an issue.
     
  45. NYGator

    NYGator Well-Known Member
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    Yes, but like I posted yesterday they did it in conjunction with SBA conversation and approval. I could not imagine the political fallout of "we approved $350 Billion in loans but were only able to administrate 30% of those within the 10 day window, so the remaining 70% don't qualify for forgiveness." Of course I am making up those numbers, but I suspect many people are in similar boats. I guess it would be even worse if we were approved and lost the loan entirely because the bank couldn't get it done in ten days. At least that didn't happen.
     
  46. Oranjello

    Oranjello Well-Known Member
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    DUCKMOUTH is talking about forgiveness from a bank’s perspective. You’re understandably only viewing this from a borrower’s perspective.

    The point DUCKMOUTH seems to be alluding to is that the bank may not be able to legally forgive the loans under certain circumstances. As in, they may lack authority to do so without being on the hook and taking the hit themselves. I fortunately do not represent banks, so it’s not something I’ve seen or looked into, but I’m fairly sure that, if it becomes an issue, it’ll get resolved in borrower favorable way, as has repeatedly been done.
     
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  47. NYGator

    NYGator Well-Known Member
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    agreed, and I don't think the bank provides forgiveness. The SBA does. Like I mentioned, the SBA worked hand in hand with my bank so I am sure if it hasn't been resolved, like you said, it will be.
     
  48. Oranjello

    Oranjello Well-Known Member
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    Technically the lender processes the application for forgiveness, just like they processed the loan application.
     
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  49. NYGator

    NYGator Well-Known Member
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    I recall they mentioned a 60 day approval process for that, so I assumed the SBA was more involved in the details.
     
  50. Bankz

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    Just got an email from our bank saying they can't complete the process because the PPP funding has been fully allocated. So no funds unless they add money to the program. Fantastic cap off to a shit week.
     
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