Hey Small Business Owners...What are you doing to ride the storm out?

[Trivers]

How are you handling HR issues?

Are you applying for SBA loans?
There are several types of loans. And new info is appearing daily.

Capital up to $10MM.
Up to 30 years to repay. Some actually are forgivable.
3.75 to 4%

https://disasterloan.sba.gov/ela/

https://www.inc.com/kevin-j-ryan/sma...incthismorning



My world: Everyone at the software companies are working remotely. The chocolate factory shut down yesterday due to not be considered an essential business. The chocolate elve had already left due to health concerns. I handle all the commercial rentals myself so no impact:

I don't intend to lay-off anybody...if this stretches into June or July...then we may look at cutting salaries by 25 to 50%. With the $1,200 everyone is getting already from the gov, and the 4 month unemployment (+$600/week additional), if we have to do layoffs, then the Team will not be totally without funds.

What are you doing to ride the storm out?

[Buehler445]

Originally Posted by mililo4cpa

But you still get loan forgiveness via the PPP, plus rent, utilities, and mortgage interest and can still roll the EIDL in.

So, hypothetically, if you cover payroll with your PPP, and still get the $10K forgiveness on the EIDL bridge, why wouldn't you do that?

I’m going to apply for both for sure. But I learned long ago with government promises I won’t count it until the check clears.

[mililo4cpa]

Originally Posted by Buehler445

I’m going to apply for both for sure. But I learned long ago with government promises I won’t count it until the check clears.

no argument from me....but I actually expect there to be more forgiveness than anticipated. So if you can get funded, then do it. My reasoning is a little long-winded, and just my opinion, but get the cash in hand now if you can

[Mr. Plow]

Originally Posted by BWillie

Landlords...what are you telling your tenants?

Some I pay the utilities, others I do not. Nonetheless, one of my tenants is insinuating that he should not have to pay his rent. If he doesn't pay his rent, I still have to pay the house payment, the utilities, the cable, the heat, the taxes, insurance etc. Why would I continue to pay utilities if you don't even pay me rent?

He is also indicating some apartment complex waived their rent for 4-months. How would they even survive? I'm not some big conglomerate corporation.

Also, when is this Govt payment going to be direct deposited? Do we have a firm date?

This is why I'm glad I'm not a landlord right now. You're in a lose/lose situation if it's someone that lost their job.

Have them pay rent as normal? They may not have enough money to keep living, but you can pay your normal bills.

Give them the month off? They have enough money to survive, but you may not be able to pay your normal bills.

[Dallas Chief]

Chase is telling us they wont have anything for us tomorrow...

"Financial institutions like ours are still awaiting guidance from the SBA and the U.S. Treasury. As a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped."

https://recovery.chase.com/contingency-plan

[IA_Chiefs_fan]

My local bank will start submitting applications tomorrow. However, they haven't heard back from the SBA on their request for additional user licenses. So they can only have one employee submitting apps at a time. Many of the other area banks aren't doing the PPP or don't really have their ducks in a row yet. My bank has been sending me updates multiple times per day as this evolves. I've sent all of my info and completed app to the bank in advance. Thank you very much for being a voice of reason when I was sleep deprived and stressed, mililo4cpa. If everything works out with the PPP, and it should, then my business will most certainly be just fine even if shit got real, real bad for six months.

[mililo4cpa]

Originally Posted by Dallas Chief

Chase is telling us they wont have anything for us tomorrow...

"Financial institutions like ours are still awaiting guidance from the SBA and the U.S. Treasury. As a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped."

https://recovery.chase.com/contingency-plan

one of my consultants confirmed the same (working with a client this morning to get their app in through Chase).

So far, only bank I've heard so far....will report if others are out there

[Hog's Gone Fishin]

Originally Posted by BWillie

Landlords...what are you telling your tenants?

Some I pay the utilities, others I do not. Nonetheless, one of my tenants is insinuating that he should not have to pay his rent. If he doesn't pay his rent, I still have to pay the house payment, the utilities, the cable, the heat, the taxes, insurance etc. Why would I continue to pay utilities if you don't even pay me rent?

He is also indicating some apartment complex waived their rent for 4-months. How would they even survive? I'm not some big conglomerate corporation.

Also, when is this Govt payment going to be direct deposited? Do we have a firm date?

I haven't gotten the dreaded calls yet but I know they are coming. I plan to empathize with them. I will ask them how much they can pay now and the rest will be deferred until July to pay out over 6 months. Also I want some kind of documentation they are not working.

[stevieray]

Originally Posted by Hog's Gone Fishin

I haven't gotten the dreaded calls yet but I know they are coming. I plan to empathize with them. I will ask them how much they can pay now and the rest will be deferred until July to pay out over 6 months. Also I want some kind of documentation they are not working.

your'e good man Hog.

Please realize they dread making that call, too.

[ChiliConCarnage]

Apparently, Bank of America's portal is up?

[mililo4cpa]

Originally Posted by ChiliConCarnage

Apparently, Bank of America's portal is up?

I just had one of my consultants, who is helping a client put in their application to BoA tell me that BoA is telling our client that unless they already have an existing credit relationship (i.e. line of credit or other borrowings), that the SBA is not allowing them to accept PPP loan requests. NOTE: This client has all of their existing checking and savings accounts with BoA

This is not a requirement for PPP eligibility, so I think BoA is giving them a load of shit. I told my consultant to, with our clients, call their relationship manager and physically tell them where in the CARES act or SBA 7(a) does that state it is a requirement.

It's bullshit because there are millions of small businesses that deal with non-SBA lenders, who will need to go to SBA lenders to get the PPP. I understand that there will need to be accounts established, and some credit underwriting performed for new customers, but that shouldn't proclude anyone from getting access to the funds.

[mililo4cpa]

Originally Posted by mililo4cpa

I just had one of my consultants, who is helping a client put in their application to BoA tell me that BoA is telling our client that unless they already have an existing credit relationship (i.e. line of credit or other borrowings), that the SBA is not allowing them to accept PPP loan requests. NOTE: This client has all of their existing checking and savings accounts with BoA

This is not a requirement for PPP eligibility, so I think BoA is giving them a load of shit. I told my consultant to, with our clients, call their relationship manager and physically tell them where in the CARES act or SBA 7(a) does that state it is a requirement.

It's bullshit because there are millions of small businesses that deal with non-SBA lenders, who will need to go to SBA lenders to get the PPP. I understand that there will need to be accounts established, and some credit underwriting performed for new customers, but that shouldn't proclude anyone from getting access to the funds.

P.S. I believe they made the application in person, not portal....not 100% sure on this

[mililo4cpa]

Also, SBA raised the fixed rate from .05% to 1%, but also stream-lined the application process....

https://bankingjournal.aba.com/2020/...program-loans/

[IA_Chiefs_fan]

I'm told that there's another new app. https://home.treasury.gov/system/fil...30-2020-v3.pdf

[blake5676]

Spoiler!

Over the past several weeks, Bank of America has been providing support to our customers and clients through our enhanced Client Assistance Program.

In addition, beginning April 3rd, our Small Business clients may also be eligible for financial relief through the federal Paycheck Protection Program that is being introduced as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The Paycheck Protection Program is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow.

In order to ensure an orderly flow of these government-provided funds, we will follow the intent of the U.S. Treasury guidance, including what has been posted at the U.S. Treasury website, that small businesses that plan to apply should do so with their current business loan provider.
Small Business clients with a business lending and a business deposit relationship at Bank of America are eligible to apply for the Paycheck Protection Program through our bank. A client’s pre-existing lending relationship with us may be a Bank of America Business Credit Card, small business line of credit or business loan.
Small Business owners who do not have both a business lending and business deposit relationship with us should contact their current business loan provider as soon as possible, if they plan to apply for the federal Paycheck Protection Program. This is the best and fastest method for applying for federal relief, based on the U.S. Treasury requirements and guidance.
All applications, information and correspondence about the Paycheck Protection Program at Bank of America will occur online and through email, including the application process, submission of required documents, and follow up correspondence.
Eligible clients who plan to apply for the Paycheck Protection Program loan should be aware of the following important items:

You must have a pre-existing business lending and business deposit relationship with Bank of America, as of February 15, 2020. A Business Credit Card, line of credit or loan may be the lending product used.
At Bank of America, the federal Paycheck Protection Program will be administered online only.
Clients must have a Business Online Banking account. If you do not currently have a Business Online Banking account you must sign up for Business Online Banking as soon as possible.
Apply for the federal Paycheck Protection Program at www.bankofamerica.com/SBResources beginning on Friday, April 3rd.
After completing the application process, you will receive online confirmation of the submission.
Bank of America will process your application as soon as possible.
We will contact you with next steps and to collect any required documents. Do not proactively deliver or send documents to our Financial Centers or banking teams.
You will be notified of the status of your loan application through email communications.
Information about your application status will NOT be available through our Financial Centers or Contact Centers — due to the nature of this loan process and the steps involved.
To prepare for your application process, review requirements listed on the U.S. Treasury website. These include:
2019 Payroll — total payroll for full year 2019, by employee, as reported to the IRS
2019 Independent Contractor Costs — Listing of 1099’s-MISC for 2019 independent contractors, by person, as reported to the IRS (Note: Do NOT include 1099’s for services)
Payroll report as of February 15, 2020 or closest date after that date, by employee
Other information
Under the CARES Act, the federal Paycheck Protection Program includes the following components:

The program will be available to businesses with 500 or fewer employees to help with payroll, rent, utilities, healthcare costs and more.
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. The loan amount is capped at $10 million.
Loans will be forgiven up to the loan amount for a borrower’s payroll, rent, mortgage, and utility costs incurred and paid during an eight-week period after a loan is originated.
Loan forgiveness will be reduced to the extent of a) any reduction in employee headcount during this period (as compared to the prior year), and b) any reduction in pay of an employee by more than 25% (as compared to their prior year compensation). Borrowers that rehire workers will not be penalized for paying them less when they are rehired.
The SBA also expanded Emergency Economic Injury Disaster Loans.
Bank of America business lending relationships include small business, commercial or corporate credit cards, conventional business loan or lease, business lines of credit, business auto loans, practice solutions loans, trade and asset-based loans. Clients with these existing relationships have the established accounts and underwriting verifications in place to allow Bank of America to help provide the quickest access to the relief funds and help the U.S. government prevent fraud in the process. There are additional options that may be sources of support for small business owners:

Other Small Business Administration relief programs: The SBA is providing special financing options that small business owners can access via www.SBA.gov/disaster.
Community Development Financial Institutions (CDFIs): CDFIs, also known as local loan centers, are small and typically not-for-profit providers of loans. Bank of America is the largest investor in CDFIs in the United States – with more than $1.6 billion in loans and investments in over 250 CDFIs. On Monday, March 30, Bank of America announced that it will provide up to $250 million in capital to community development financial institutions (CDFIs) by funding loans through the Paycheck Protection Program. In addition, Bank of America will provide up to $10 million in philanthropic grants to help fund the operations of CDFIs. Find a CDFI near you via the CDFI list and locator tool.
Other small business lending providers: If you have a lending relationship at another bank, working with your current provider will be the best and fastest approach.
SBA 7(a) lenders: find a local SBA lender via https://www.sba.gov/funding-programs/loans.
Bank of America continues to provide additional support to our customers and clients through our enhanced Client Assistance Program. Learn more

Sincerely,

Sharon Miller
Head of Small Business

This is the email information I just received from BOA. I have two business checking accounts with them but no lending as I've never needed a loan from them and their credit card rewards suck, so I use Chase Ink for business. Reading this makes it sound as though I'll be pretty low priority for them to process my application.

[mililo4cpa]

Originally Posted by IA_Chiefs_fan

I'm told that there's another new app. https://home.treasury.gov/system/fil...30-2020-v3.pdf

It's quite possible, as the treasury made last minute changes last night to stream-line the process....so this app may reflect that