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PPP Loans-All small businesses must read

randy68

#1 Enemy of Google
I applied for the PPP from Chase Bank and got nothing but "your application has been submitted". I also applied for the Grant funds for another company and got nothing. And no stimulus check. Guess I am on my own for this.
Yep!
 

desertspeed

Well-Known Member
So here's some info from a banker's perspective on this program. Just some background, I normally only do commercial real estate financing- hotels, apartments, office buildings etc, but over the past 10 days I have been helping to work on hundreds of these applications for both my clients as well as other applicants. This program is truly the largest, most ambitious loan program in history. In a period of less than 2 weeks banks were expected to be able to process thousands (really tens of thousands) of applications based on terrible guidance from the treasury dept/SBA.

Not 100% their fault either- they were making it up as they went along with a very short lead time as well. The short version is no bank was equipped to handle the demand on such short notice. Some banks did better than others, some small banks that only had a few applications were able to process them quickly, some large banks basically only tried to help their largest clients, and some were just completely overwhelmed by the demand.

For example, my bank received over 40,000 applications in a 5-day period. We had hundreds of people working 24-hours a day trying to process them, but most applications had errors, or follow-up questions, etc. Not easy to get through that sort of volume. Unfortunately funds in the original allocation ran out last night. Most of us believe there will be a second (and possibly subsequent) funding for this program, so hopefully those that missed out will still have a chance.
 

Robin Hood

Well-Known Member
I agree...my wife's bank has submitted and funded several of these loans. It really depends on the bank that you are working with and their ability and willingness to get it done.
 

Bro_Gill

Well-Known Member
My son's company applied for SBA loans and hasn't heard word 1 about it. He also attempted to go to BofA (why?!) and was told unless they already held some paper over the company, they weren't going to help him get anything. So BofA's point of view on this is that the money for small businesses is actually an insurance loan to cover the debts the companies already have with BofA. Imagine that, the Big Banks cover their assets with little guy's money! To top it off, the Dems are now holding any more money into the SBA/PPP loan accounts unless another round of stimulus money that goes directly into people's pockets is not included in the bill. How about and extra $2,000 dollars a month for 6 months if you are single and earn up to $130,000 dollars a year? Add that 2,000 bucks a month to the current 1948 bucks a month for unemployment and another 2598 a month for the 600 dollars a week bonus currently being given for 6 months and you have 6548 dollars a month in California for doing nothing. How many working stiffs that are essential are getting half that at this point?
 

TwistyItch

Well-Known Member
As a small company we have no no employees and don't pay ourselves so PPP is out and heard nothing back on the forgivable distress loan/grant. And since I drained accounts to pay for tooling last year..well it appears as if my income is way high in 2019. So in spite of making almost nothing with the race season cancelled/delayed this so-called CARES program is leaving me out. It's just really bad timing for us and a lot of others. Good news is that my youngest son (23) got $1200. It's working for some. Not to get Purple section on this, but I was disappointed to learn that less than half the 2.5 trillion dollars came down to people and most to pet projects and pet entities.
 

Zac Reish

Well-Known Member
I have a small landscape contracting company. We carry zero debt, do everything legit and submitted our paperwork properly the second we could do so. Unfortunately they shuffle the loan paper work of businesses that don’t have lines of credit, cc debt to the back of the line because they don’t make much money on companies like mine. Hopefully that doesn’t mean we were too late.
 

Robin Hood

Well-Known Member
I have a small landscape contracting company. We carry zero debt, do everything legit and submitted our paperwork properly the second we could do so. Unfortunately they shuffle the loan paper work of businesses that don’t have lines of credit, cc debt to the back of the line because they don’t make much money on companies like mine. Hopefully that doesn’t mean we were too late.
You should really state the name of the bank. You are categorizing all big banks, small bank, credit uniions, etc into one catagory and making a pretty big assumption. They all aren't doing it this way.

Do you think it is any differant at most race shops based on how much you spend?
 

ErikIrvine

Well-Known Member
Does anybody have an idea or a market report for potential impact on commercial real estate prices? This may be a good time for a business with some cash available
 

DGruper

Well-Known Member
Dg. You are a little slow sir. I can't believe it took you this long to figure out that Wells Fargo sucks. I sure enjoyed the day I fired them
43-Not the first time I’ve been accused of being a little, sometimes even really, slow.....
I would love, love, love to fire them but I haven’t found a small community bank that can do all what WF does (and overcharges for). The day I retire and sell/shutdown the business will be the day I walk in and close all the accounts. It won’t be long.....
 

Zac Reish

Well-Known Member
Bank of America.
And to be clear I’m not mad at their methods. And if we are not one of the fortunate It’s a case of “you win some and you lose some”. But you live to fight another day.
 

DGruper

Well-Known Member
Does anybody have an idea or a market report for potential impact on commercial real estate prices? This may be a good time for a business with some cash available
It will probably be a delayed reaction. But I think it also depends on the space size you’re looking for. If it’s 15,000 sq ft or less (ie perfect for small businesses), there will be some leased spaces opening up because of the ones that didn’t make it through this period. The problem is, the pricing probably isn’t going to fall off as quickly because the demand will still be there. I don’t see too many buildings going on the market because these things have been nothing but ATM machines for the owners if they purchased them during the last downturn (2010 or so).
But what do I know??? Your results may vary.
 

Bricoop

Well-Known Member
Most lenders were only accepting loan applications from existing customers. So those whose banks did a lesser job winding up for this really gor hosed.

Private Equity M&A is planning on going through the roof.
 

mgobaja

Well-Known Member
Bank of America.
And to be clear I’m not mad at their methods. And if we are not one of the fortunate It’s a case of “you win some and you lose some”. But you live to fight another day.
Zac - just curious - do you guys maintenance or new construction ? Shoot me a PM if you prefer.
 

MTPyle

Well-Known Member
I think banks are putting the money where it helps them. I bet they only sent money to businesses that had a loan with that bank. The bank was not getting paid to do all these loans so they must have decided to get some benefits.

If you didn't have a loan with your bank or SBA I bet you didn't make the cut. Which is really sad as the leveraged ones get the benefit while the conservative businesses get nothing.

Just like any government program it will be manipulated for the good of the people in control of it.

Mike
 

Bricoop

Well-Known Member
I think banks are putting the money where it helps them. I bet they only sent money to businesses that had a loan with that bank. The bank was not getting paid to do all these loans so they must have decided to get some benefits.

If you didn't have a loan with your bank or SBA I bet you didn't make the cut. Which is really sad as the leveraged ones get the benefit while the conservative businesses get nothing.

Just like any government program it will be manipulated for the good of the people in control of it.

Mike
My gut tells me banks prioritized existing borrowers to lower their own loan losses
All the while telling others that they are prioritizing these borrowers because they are in the greatest need. They pulled similar **** on our company this week.

This idea by the Feds has been good, but their execution is absolute dogshit. It does appear congress is working towards additional appropriations.
 

[email protected]

Well-Known Member
The good and the bad

The good
We were fortunate enough to get funded..Money in our account.We did not use our primary bank which I consider a medium sized bank. We don't carry any debt with them nor credit line and I just felt like as others said here we were going to the bottom of the stack. We worked with a very small community bank. President is a friend to the Off Road world. His small size allowed him to move quickly and figure out the system. We don't NEED the money today but one never knows And Yes they are being paid fairly well for processing the loans,I'm ok with that as he had to hire people to shuffle paper.

The good
Washington will print more money for those left out

The bad

If you already have a ticket started with the big banks , you can't downshift and change lanes to another smaller institutions. Your loan will get kicked.

The bad

Washington is printing more money

The bad
Read this and it will make your blood boil
 

Robin Hood

Well-Known Member
The good and the bad

The good
We were fortunate enough to get funded..Money in our account. We don't NEED the money today :eek: but one never knows

The good
Washington will print more money for those left out
So if you don't ever NEED the money will you kindly return it to the American tax payer?
 
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