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

[O.city]

Originally Posted by mililo4cpa

Been researching this all morning, and it's as clear as mud at this point.

My take on the other SBA loan option (and I profess, I'm am certainly no expert on this):

1. this option sounds no different than a "normal" SBA back loan funded from your bank (other than the special provisions). What I mean by this is that you have to apply through a partner bank / financial institution for funding
2. You will not be able to utilize this option if other means of credit are available
3. Unclear to me, but sounds like this is in complementary to the EIDL, or that you could use this re-fi the EIDL loan, thus making it (effectively) forgivable as well.
4. With the EIDL, you don't have to take funding even if approved, so if it does ultimately prove out that you can use one loan or the other, I would think the SBA would guide you

Sorry I don't have specific links, but I'm reading like 20 different articles + the actual text of the Small Business Act and the bill itself (I will include those links).

https://www.sba.gov/sites/default/fi...ss%20Act_0.pdf

https://www.congress.gov/bill/116th-...29B9DF4626458E


My recommendation is to continue on with EIDL while you explore this option. But shit like this is why I never could be an attorney....to much legal mumbo jumbo for my taste. I hope somebody a little more intelligent than me could chime in (maybe I should post this in the "are you more intelligent...." thread

That’s how I understand it too

[petegz28]

[notorious]

Hint: Firefox would NOT let me fill in the fields via computer, Microsoft Edge did.

[O.city]

SBA is offering disaster relief programs through their website.**SBA.gov/disaster

The program you were speaking about last night has not been rolled out yet.**It has been passed on some levels of Congress.**When it’s signed into law it will take them some time to develop and roll out.**I and my SBA lender suggest the site above and applying for disaster relief funds or you will have to sit tight and wait on them to sign the other into law.**Even if you apply for the disaster relief and then the other program is rolled out you don’t have to take the disaster relief and then you can still apply for the loans you are talking about if that comes to pass soon.**

When the program you are taking about rolls out to banks our SBA Dept will notify all of us and I will let you know ASAP.

Praying for you all!


Here is what I was told from a banker I’m close with

[mililo4cpa]

Originally Posted by O.city

SBA is offering disaster relief programs through their website.**SBA.gov/disaster

The program you were speaking about last night has not been rolled out yet.**It has been passed on some levels of Congress.**When it’s signed into law it will take them some time to develop and roll out.**I and my SBA lender suggest the site above and applying for disaster relief funds or you will have to sit tight and wait on them to sign the other into law.**Even if you apply for the disaster relief and then the other program is rolled out you don’t have to take the disaster relief and then you can still apply for the loans you are talking about if that comes to pass soon.**

When the program you are taking about rolls out to banks our SBA Dept will notify all of us and I will let you know ASAP.

Praying for you all!


Here is what I was told from a banker I’m close with

Great info.....as of yesterday, my challenge was that it was really unclear how the money was going to get into the hands of small business....seems like the news today (kind of) clarifies that to a degree that the mechanism will be SBA backed loans with forgiveness options.....

But also, I was of the opinion that is was going to take several months to work out the specific details. that may be just me being overly cautious, as I never want to give my clients the impression that things are imminent (which often results in them stopping good sound business practices because of false hope), but seems to still be lots of questions of how this will work, which will certainly delay ultimate funding....

Your message above totally reflects exactly what I was thinking as well (and adds the 100% correct factor that CARES isn't law yet either...)

[notorious]

Thanks, O. Information is very helpful.

[BucEyedPea]

Originally Posted by Trivers

What are you doing to ride the storm out?

Don't have HR issues but now starting to see tenant issues. One so far cannot pay rent. So I am making him paint to pay me. I will not evict him.

I'd rather a month moratorium on mortgage payments instead -- for all even homeowners. Instead of handouts.

[Mr. Plow]

Originally Posted by BucEyedPea

I'd rather a month moratorium on mortgage payments instead -- for all even homeowners. Instead of handouts.

Talking some friends at the beginning of all this, that's what we came up with. No mortgage payments for 2-3 months. Tack them on to the end of the note. Gives me money in my pocket to pay everything else, plus in the end they are getting their money.

I'm sure it's not as simple to do as that sounds and I'm sure there are reasons it's not being done that way that I know nothing about.

[mililo4cpa]

Originally Posted by Mr. Plow

Talking some friends at the beginning of all this, that's what we came up with. No mortgage payments for 2-3 months. Tack them on to the end of the note. Gives me money in my pocket to pay everything else, plus in the end they are getting their money.

I'm sure it's not as simple to do as that sounds and I'm sure there are reasons it's not being done that way that I know nothing about.

I'd be calling my bank (and will be early next week) and asking for a plan to mitigate payments in some fashion for 3 - 6 months....maybe smaller payments or interest only, with a plan for how to repay the amounts after things open back up (say over 6 - 8 month). There is a moratorium on foreclosures (albeit that doesn't stop people reporting bad credit / missed payments), but I'd guess you'd have a fighting chance of being able to work things out with the banks. I'm guessing that the average person takes the "moratorium" as "I don't have to pay", which is not the case at all. You should be talking with your banks, and if you have other debt like credit cards, car loans, etc. I'd do exactly the same thing.

Banks / institutions aren't going to offer it up, you have to be the aggressor and have a plan to lay out, and put it in their hands. Even if the banks ultimately doesn't play ball, you took a shot....and at the end of the day, you may actually be able to defer some payments significantly even if you don't totally abate them

[ModSocks]

Annnnnd we're shutting it down.

[mililo4cpa]

Also, for small business owners: Lots of Health Care companies are abating premium payments for 30 - 60 days....call your brokers and ask for abatement of payments for short term....

[F150]

Many will cash in chips and go out till this is over only to resurface after and go back to being successful...those who had a ton of debt wont find it any fun at all.

[mililo4cpa]

Originally Posted by F150

Many will cash in chips and go out till this is over only to resurface after and go back to being successful...those who had a ton of debt wont find it any fun at all.

Totally agreed with this.....in regards to business, the best way to weather this storm was to have a strong balance sheet prior to. Most of the business owners I'm talking to now are lucky to have 3 - 4 weeks of sustainability and are ridden with debt. Hate to be the bearer of bad news, but adding more debt on top of this isn't going to solve those problems unfortunately...

[SAUTO]

Originally Posted by mililo4cpa

Totally agreed with this.....in regards to business, the best way to weather this storm was to have a strong balance sheet prior to. Most of the business owners I'm talking to now are lucky to have 3 - 4 weeks of sustainability and are ridden with debt. Hate to be the bearer of bad news, but adding more debt on top of this isn't going to solve those problems unfortunately...

this came at a terrible time for me, my past 18 months have sucked. car accident ****ed up a hand forever, then cut tendons in the same ****ing hand in july, then had a nurse **** us over real good. was just getting everything close to being in order and now this.





what really sucks is that the insurance company has gone totally silent regarding the settlement we were negotiating otherwise i'd have absolutely nothing to worry about...



but you know what? it'll all work out. it always has.