Business Owners and COVID-19

[DoxaDavid]

Originally Posted by 1st amg

Hi David, I am in Canada, so I do not think this would benefit or help you in any way. Sorry,man, good luck

Ahh, didn’t pay attention and missed that.

Thanks buddy and same to you!

[ludetuner]

For Canada, the federal government recently offered a wage subsidy of up to 75% for qualifying small businesses. They expect to release more details on Monday. I think this will be welcome news for many small businesses as this is going to be a seriously difficult rough patch for many small businesses

[Dr.Brian]

Harvard, with its $40.9 Billion endowment laid off its food service workers. What a disgrace. I hope they never come back.
The University of Pennsylvania, where I’m on the faculty, with its meager $14.7 Billion endowment sent out a letter last week to all Faculty and staff that they recognize that this disruption will last months and that they don’t have to worry about their jobs or getting paid even if they cannot work from home. That’s how it’s done.

[Duey]

In California it's a little different, the landlord is left holding the bag. It says renters "can defer those payments" but there is no timeline for repaying the deferred payments. It basically covers everyone in state so you won't see rent until July at the earliest. This is going to be a nightmare here for people with properties.

Governor Gavin Newsom signed an executive order Friday banning evictions across California through May 31 for renters affected by the coronavirus. The order prohibits landlords, law enforcement, and courts from evicting tenants for failing to pay rent due to coronavirus-related circumstances.

That includes anyone unable to work because they are caring for someone with a "suspected or confirmed case of COVID-19," as well as anyone laid off, has their hours or income reduced, or must care for a child whose school was closed due to the coronavirus.

Renters would still be required to eventually pay all the rent they owe, and must notify their landlord that they need to delay rent payments within seven days of their rent becoming due. In order to avoid eviction, tenants must show documentation proving the change in their financial circumstances, such as termination notices, payroll checks, bank statements, or medical bills.

The order goes into effect immediately, meaning residents and businesses with rent due on April 1 can defer those payments.

[dimag333]

I applied for federal sba last night, interesting, you can’t apply for amount or term, you just put your financials in and they will “make you an offer”

steve

[jschmidtdmd]

Originally Posted by dimag333

I applied for federal sba last night, interesting, you can’t apply for amount or term, you just put your financials in and they will “make you an offer”

steve

I’ll be curious to hear how this process goes for you. I was considering it, but honestly, SBA has always been such a pain, not sure I want to deal.

[1st amg]

Originally Posted by Duey

In California it's a little different, the landlord is left holding the bag. It says renters "can defer those payments" but there is no timeline for repaying the deferred payments. It basically covers everyone in state so you won't see rent until July at the earliest. This is going to be a nightmare here for people with properties.

Governor Gavin Newsom signed an executive order Friday banning evictions across California through May 31 for renters affected by the coronavirus. The order prohibits landlords, law enforcement, and courts from evicting tenants for failing to pay rent due to coronavirus-related circumstances.

That includes anyone unable to work because they are caring for someone with a "suspected or confirmed case of COVID-19," as well as anyone laid off, has their hours or income reduced, or must care for a child whose school was closed due to the coronavirus.

Renters would still be required to eventually pay all the rent they owe, and must notify their landlord that they need to delay rent payments within seven days of their rent becoming due. In order to avoid eviction, tenants must show documentation proving the change in their financial circumstances, such as termination notices, payroll checks, bank statements, or medical bills.

The order goes into effect immediately, meaning residents and businesses with rent due on April 1 can defer those payments.

Its disgusting that the landlord end up being the fall guy. Our mortgages have to be paid, and the relief is not going to cover the expenses at all. We have advised all tenants that we are freezing all rent increases for the year 2020 which for us is a hit, but it shows humanity. In our province, the editors of crappy papers like the Ottawa or Toronto Sun are writing editorials to encourage tenants to not pay the rent....there is somewhat of a revolt from landlords saying that if the amount of tenants in a building that are the non payers over rule the paying tenants, the landlords are threatening to shut off utilities like water, hydro, gas.....this is going to get nasty. Thanks government officials for turning this into a war of attrition.

[doctoryellow]

How do you apply for the SBA? Just walk into any bank now?

[dimag333]

Originally Posted by doctoryellow

How do you apply for the SBA? Just walk into any bank now?

It’s online, it’s not your typical sba process like you would use for a new company, basically personal debt and asset “audit” mine was 11 pages total with actual application, took about 2 hours not that bad, nj looks like a company my size would never even be considered

steve

[dimag333]

Originally Posted by jschmidtdmd

I’ll be curious to hear how this process goes for you. I was considering it, but honestly, SBA has always been such a pain, not sure I want to deal.

It wasn’t too bad, they want more personal info than business

steve

[sokoloka]

Originally Posted by dimag333

I applied for federal sba last night, interesting, you can’t apply for amount or term, you just put your financials in and they will “make you an offer”

steve

Originally Posted by dimag333

It’s online, it’s not your typical sba process like you would use for a new company, basically personal debt and asset “audit” mine was 11 pages total with actual application, took about 2 hours not that bad, nj looks like a company my size would never even be considered

steve

Did you apply for an EIDL on the SBA website? From what I can tell the CARES Act and Payroll protection Program is separate from EIDL but you can potentially roll an EIDL into it.

CARES seems to be the 2.5 months worth of payroll, forgivable after 60 days etc.

Looks like Mnuchin was saying the CARES rules and processes would be out by this coming Friday.

[dimag333]

Originally Posted by sokoloka

Did you apply for an EIDL on the SBA website? From what I can tell the CARES Act and Payroll protection Program is separate from EIDL but you can potentially roll an EIDL into it.

CARES seems to be the 2.5 months worth of payroll, forgivable after 60 days etc.

Looks like Mnuchin was saying the CARES rules and processes would be out by this coming Friday.

Eidl, I’m in a service (wedding) field that has had about a 6 month loss of business. I paid my guys in full for the next 6 months out of my pocket with nothing coming in as for most my employees this is a second gig but they do depend on it.

I can float myself into June but after that things get iffy. I’m not looking for any kind of payroll assistance even though I use adp, I think it would just end up being too complicated.

I would like to at least recoup at low interest the temporary loss of business that is around 100kish. 3% is much better than 30% offered by Kabbage!

steve

[dimag333]

Here is the page you want, call for best info, they answer right away, great resource

https://www.sba.gov/disaster/apply-f...oan/index.html

steve

[SMD]

Originally Posted by jschmidtdmd

I’ll be curious to hear how this process goes for you. I was considering it, but honestly, SBA has always been such a pain, not sure I want to deal.

I thought this process was going through pre approved banks and their underwriting - the thought being banks are in a better position to do this quickly since they often have preexisting relationship - and SBA would then guarantee the loan.

https://www.venable.com/insights/pub...-to-know-about

[dimag333]

Originally Posted by SMD

I thought this process was going through pre approved banks and their underwriting - the thought being banks are in a better position to do this quickly since they often have preexisting relationship - and SBA would then guarantee the loan.

https://www.venable.com/insights/pub...-to-know-about

That’s for quick bridge loans and smaller amounts. The disaster relief is up to 2 million and 30 years, normally used for hurricanes and stuff

steve

[SMD]

Originally Posted by dimag333

That’s for quick bridge loans and smaller amounts. The disaster relief is up to 2 million and 30 years, normally used for hurricanes and stuff

steve

Audited financials required?

[superdog]

Originally Posted by SMD

Audited financials required?

No sir. At least not as per my accounting firm.

[dimag333]

Originally Posted by SMD

Audited financials required?

Na it’s all personal assets and liabilities, just check out the forms need, I think it’s form 404 on that link. If you call they answer super fast and are amazingly helpful

I called again today to make sure my app uploaded, they said 7-10 days to get a case worker

steve

[jschmidtdmd]

I feel like there hasn’t been enough solid info available yet for the small forgivable loans that will be provided by our current banking relationships.

I’d like to look into that first for employees and rent before going through an SBA product. Unless someone can tell Me that the SBA process is actually easy, then I’ll look into it. Had a bad experience in the past, and vouched to never try that road again.

[dimag333]

Originally Posted by jschmidtdmd

I feel like there hasn’t been enough solid info available yet for the small forgivable loans that will be provided by our current banking relationships.

I’d like to look into that first for employees and rent before going through an SBA product. Unless someone can tell Me that the SBA process is actually easy, then I’ll look into it. Had a bad experience in the past, and vouched to never try that road again.

Hey man follow the link I posted and call them, disaster relief is much different than start up capital, this seems to be a direct from federal government situation, no banks in between.

It’s not like when they “match” you with a bank, tried that nightmare years ago too for start up capital, ended up basically using a loan shark instead lol

steve

[dimag333]

I just put in a big payroll via adp for friday, it made me set up a additional earning for fmla/f/expansion or something. I am paying out to cover employees for the next couple months. Does anyone know what the deal is with this garanteed 2 week sick time thjng from the federal government they are supposed to cover, I’m guessing it is coming I am a tax credit at the end of the year, I put all payroll under fmla

steve

[SMD]

Originally Posted by dimag333

It wasn’t too bad, they want more personal info than business

steve

Personal guarantee?

[DoxaDavid]

Originally Posted by SMD

Personal guarantee?

Yes, the CARE long term loans have PG, the 2 months of coverage Payroll Protection Act does not.

[SMD]

Originally Posted by DoxaDavid

Yes, the CARE long term loans have PG, the 2 months of coverage Payroll Protection Act does not.

So take the loan and make sure you do not ever lay anyone off and if you cannot make it until loan forgiveness not only does the biz go bankrupt but you can be personally on the hook as well. Curious how many will take that kind of a deal.

[sokoloka]

Filled out the shortened EIDL app today - took all of 5 minutes. Looks like PPP will be ready for applications this Friday?

[Travelair007]

Originally Posted by SMD

So take the loan and make sure you do not ever lay anyone off and if you cannot make it until loan forgiveness not only does the biz go bankrupt but you can be personally on the hook as well. Curious how many will take that kind of a deal.

I will. I have a lot invested into my businesses and before COVID-19, they carried a hefty valuation. Some of that will erode and will need time to recover, which it will over time. Without the SBA help, I’d be putting a nail in the coffin, so I’m willing to sign a PG to try and save what I’ve built / invested in.

[DocHorton]

Originally Posted by Travelair007

How are you all planning to comply with the FFCRA >> FMLA and paid sick leave for employees?

We don’t think we can financially as it will bankrupt our businesses. No one clearly understands the ramifications so we are flying blind.

If you have less than 50 employees you aren't required to pay out, it's optional. If you do, you'll receive payroll tax credits for the amount you pay.

[RWH]

Has anyone applied for the 10k grant from EIDL? If so have you received the money and how long does it take?

[Travelair007]

Originally Posted by RWH

Has anyone applied for the 10k grant from EIDL? If so have you received the money and how long does it take?

I applied for the following:

- SBA Disaster Loan on 3/20/20 - application sent to processing center 3/31/20 - No news since the
- SBA EIDL Advance loan - 3/24/20 application - No news
- PPP applied to my lender’s portal on 4/3/20 but pushed out to Monday before it gets submitted (already +17,000 application have been made)

[RWH]

Originally Posted by Travelair007

I applied for the following:

- SBA Disaster Loan on 3/20/20 - application sent to processing center 3/31/20 - No news since the
- SBA EIDL Advance loan - 3/24/20 application - No news
- PPP applied to my lender’s portal on 4/3/20 but pushed out to Monday before it gets submitted (already +17,000 application have been made)

Ok thanks! This whole thing is a #$%@show so far. Businesses unable to get loans processed fast and people here in New York cant even get unemployment benefits due to an outdated system to file claims.