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PPP Loans-All small businesses must read

Bricoop

Well-Known Member
I know there are a lot of small business owners on these forums. Many of you may be seeing tough times. For small businesses and especially those that are considering layoffs, the government has rolled out a short term loan program that forgives the loan if you use this money for payroll. There are certain other expenses like rent and utilities that you can offset up to 25% of the total loan. It’s a no brained for all qualifying companies. Go Here https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf

PS. This post isnt meant to be political, but rather to inform any small business owners on here that there is money available. I know this isn’t about desert racing but it’s the most popular forum and there isn’t much desert racing going on right now.
 

Klaus

Administrator
Thank you. Good info.

Go to purple to get political in it if you need to.
 

DGruper

Well-Known Member
You can now go to the SBA.gov website and fill out the application. I did and it only took about 10 minutes to do..
Now, it’s wait and see....
 
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havahockey

Flipper
Just be careful, the PPP Loan can be forgiven if you meet the requirements, there are other loans that are just that and will need to be repaid in full.
 

DGruper

Well-Known Member
If you did it through the SBA it might not be the PPP program that can be forgiven. Those are done through your lender.
True. I expect the SBA will act as a clearinghouse to banks for these loans. My banker had already contacted me about this, but that greedy little bastard already charges me too much. Let someone else have a shot at it. But it is the PPP program that can be forgiven as long as you use the funds properly.
 

desertspeed

Well-Known Member
You can now go to the SBA.gov website and fill out the application. I did and it only took about 10 minutes to do..
Now, it’s wait and see....
The application can't be submitted in paper form- it was provided to lenders so that they can develop online application platforms. Here is really the best up to date info:


I am a commercial RE lender for a regional bank, so this program is my life at the moment :)

It really appears to be an excellent program with little to no downsides for businesses, and I would encourage anyone with employee expenses to apply. Just keep in mind that the rollout and execution of the program may be a bit rocky as lenders are scrambling to get the process in place following terrible and late guidance from the SBA.

Most banks will have online applications available later today to start applying- that is the only way to do so.
 

DGruper

Well-Known Member
The application can't be submitted in paper form- it was provided to lenders so that they can develop online application platforms. Here is really the best up to date info:


I am a commercial RE lender for a regional bank, so this program is my life at the moment :)

It really appears to be an excellent program with little to no downsides for businesses, and I would encourage anyone with employee expenses to apply. Just keep in mind that the rollout and execution of the program may be a bit rocky as lenders are scrambling to get the process in place following terrible and late guidance from the SBA.

Most banks will have online applications available later today to start applying- that is the only way to do so.
Glad to hear that you will have a way to generate some income during these times.
While the program appears to be excellent, a major word of caution any time you allow the government to loan you money. This program could very much be a “wolf in sheep’s clothing” if you don’t use AND account for how you used those funds. If I recall correctly, there is a maximum amount to this program that seemed like it would fund a small business (1-5, maybe 10 people) payroll, rent, and light bill for a few months. No doubt, that could be a lifesaver.
However, if you’ve been running your business partially on credit cards, this cash influx cannot be used to pay off those credit card bills. So, just be careful. Before applying, think and plan out how you would allocate these funds so that you can have the loan forgiven when they come to collect.....and they will come!
Keep an eye out for a rise in personal Chapter 7 bankruptcy filings. A good number of those will be small business owners that were in deep with credit cards and other revolving debt and realize that they had signed personal guarantees to get their “company” credit cards and lines of credit.
 

Robin Hood

Well-Known Member
I agree that you need to be very careful and have a firm grip on your business financials and your business plan for the next few months before you consider this loan. IMO, this loan will only make sense for a small percentage of the small business community and becuase it is tied to payroll and keeping employees on payroll, it will help an even smaller percentage of those that really need help.
 

Big Whitey

Well-Known Member
Robin Hood. That is where I am struggling with wanting to get this”free” money for payroll, great idea. But for a guy like me that works for 2/5 weeks then may have 1/8 weeks off how do I maintain payroll In order to qualify for the forgiveness of the loan?
 

Curtis Guise

Administrator
The application can't be submitted in paper form- it was provided to lenders so that they can develop online application platforms. Here is really the best up to date info:


I am a commercial RE lender for a regional bank, so this program is my life at the moment :)

It really appears to be an excellent program with little to no downsides for businesses, and I would encourage anyone with employee expenses to apply. Just keep in mind that the rollout and execution of the program may be a bit rocky as lenders are scrambling to get the process in place following terrible and late guidance from the SBA.

Most banks will have online applications available later today to start applying- that is the only way to do so.
What about SBA's EIDL loan advance for $10k that says it does not need to be repaid? It's for small businesses and independent contractors. Could be great for guys like @havahockey and all the other photographers that are independent contractors.

 

Big Whitey

Well-Known Member
What about SBA's EIDL loan advance for $10k that says it does not need to be repaid? It's for small businesses and independent contractors. Could be great for guys like @havahockey and all the other photographers that are independent contractors.

My banker was pushing that loan on me the other day, still comes with requirements as I recall
 

Bricoop

Well-Known Member
The application can't be submitted in paper form- it was provided to lenders so that they can develop online application platforms. Here is really the best up to date info:


I am a commercial RE lender for a regional bank, so this program is my life at the moment :)

It really appears to be an excellent program with little to no downsides for businesses, and I would encourage anyone with employee expenses to apply. Just keep in mind that the rollout and execution of the program may be a bit rocky as lenders are scrambling to get the process in place following terrible and late guidance from the SBA.

Most banks will have online applications available later today to start applying- that is the only way to do so.
Hi. Do you know where I can find the full text of the regulations. I’m a CPA and considering helping companies apply.
 

johndjmix

Well-Known Member
I hope company's like us, that are striving during these times, don't go get these loans and take advantage of the situation!

--John
 

MTPyle

Well-Known Member
John

That’s a tough call. I agree with you but some
Companies will take a hit but there will be a lag. I was not going to take any of the loans but now I am wondering if that’s a good call. The big question is will companies that did take the funds and didn’t need them pay them back?

My business for instance is fine right now as we are busy with jobs that started awhile ago. There will not be any new starts over the next 6 months. So in less than 6 months we will feel the pain. So if we wait the funds will not be available. And we have cut some of our guys time down during the stay at home orders. We are only doing service and essential stuff, which means my guys are not getting the hours they usually get.

I don’t think it’s a black and white situation. Lots of complexities.

Mike
 

43mod

Well-Known Member
I assume john means thriving. He is always striving for something We are probably going to take if approved. Two guys laid off already and i think slower times to come. Especially if anyone pays attention to us out working but in this Ag area i think most will get a pass. We are surely going to pay for it plus interest if taken or not as well.
 
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