sba small business loan

Discussion in 'The Water Cooler' started by kurt cloverdales, Apr 1, 2020.

  1. kurt cloverdales

    Expand Collapse

    Joined:
    Mar 3, 2020
    Messages:
    99
    Likes Received:
    59
    basically the program is going to pay your expenses for 2 months, payroll utilities and rent/mortgage as long as your employment remains the same the loan is forgiven up till 10 million, my question to you if your company wasn't really effected or possibly prospered from what's going on would you take the money?
     
  2. El Drado

    El Drado Junior
    Expand Collapse

    Joined:
    Apr 14, 2011
    Messages:
    1,271
    Likes Received:
    238
    If my company greatly benefited from this, then no i would not. I don't think there are a lot of companies that will benefit from covid.
    We are looking at the requirements, and we check off all the boxes to receive the forgivable loan. We are from going under, which is why i am a little hesitant, but my CPA and book-keeper are telling me it is a no-brainer to do it. It's not like i am going to use the money to pay for my penis reduction surgery.
     
  3. kurt cloverdales

    Expand Collapse

    Joined:
    Mar 3, 2020
    Messages:
    99
    Likes Received:
    59
    an example know a guy whos company has something to do with online classes, tech support etc. they are booming right now, they qualify for the loan , it will easily be forgiven they check all the boxes the money will drop straight to the bottom line. he told me could be about a 3.5 million windfall
     
  4. JamieDimonsBalls

    JamieDimonsBalls All-Big Ten
    Gold Member
    Expand Collapse

    Joined:
    Jun 28, 2015
    Messages:
    4,877
    Likes Received:
    2,310
    You absolutely should if you have been affected negatively. While the majority of companies are really getting crushed, there are more than you think that are doing well because they supply staples or services that are not affected.
     
    charliejmiller likes this.
  5. JamieDimonsBalls

    JamieDimonsBalls All-Big Ten
    Gold Member
    Expand Collapse

    Joined:
    Jun 28, 2015
    Messages:
    4,877
    Likes Received:
    2,310
    The biggest problem is that it caps the number of employees at 500. There are also some stimulus measures for large corporations (airline, travel, manufacturing, etc.). Where does that leave the middle market companies? SOL.
     
  6. El Drado

    El Drado Junior
    Expand Collapse

    Joined:
    Apr 14, 2011
    Messages:
    1,271
    Likes Received:
    238
    He has every right to take the money if he qualifies, but if i were him and business was benefiting strictly b/c people need to be isolated...i would probably pass. It is an interesting question..for the record i can't blame if he does...how many opportunities like this come up ever
     
  7. El Drado

    El Drado Junior
    Expand Collapse

    Joined:
    Apr 14, 2011
    Messages:
    1,271
    Likes Received:
    238
    Let's say there are 30,000,000 small business in America, how many do you think are directly benefiting from this? If we are within 100 of each other, i will buy you case of your favorite beer.
    It is going to be very interesting how fast that $350B goes that is earmarked for this PPP...
     
  8. JamieDimonsBalls

    JamieDimonsBalls All-Big Ten
    Gold Member
    Expand Collapse

    Joined:
    Jun 28, 2015
    Messages:
    4,877
    Likes Received:
    2,310
    I have no idea, but c-stores, for example, are mostly small businesses/smaller franchises and are doing incredibly well.
     
  9. UncleMark

    UncleMark Hall of Famer
    Expand Collapse

    Joined:
    Sep 1, 2001
    Messages:
    15,334
    Likes Received:
    11,903
    So there's no box to check about a drop in revenue? If that's the case, they need to fix that quick.
     
  10. i'vegotwinners

    i'vegotwinners All-American
    Expand Collapse

    Joined:
    Dec 1, 2006
    Messages:
    9,508
    Likes Received:
    2,498
    hedge funds, private equity firms, are no doubt hiring accountants to help them max this out as we speak.

    if i understand correctly, the money is first come first serve till it's gone.

    Joe Small Business guy has no chance against the pros.
     
    10 i'vegotwinners, Apr 3, 2020
    Last edited: Apr 3, 2020
  11. kurt cloverdales

    Expand Collapse

    Joined:
    Mar 3, 2020
    Messages:
    99
    Likes Received:
    59
    I heard about 10 percent of applicants will get funded, if that happens there will be major backlash, Indiana unemployment today announced the 600 xtra would not be available until may at best
     
  12. sglowrider

    sglowrider Hall of Famer
    Gold Member
    Expand Collapse

    Joined:
    Apr 9, 2012
    Messages:
    17,293
    Likes Received:
    11,843
    Location:
    Tiny Red Dot
    Another struggling SME:

    Trump’s Company Seeks to Ease Financial Crunch as Coronavirus Takes Toll
    As companies nationwide look for relief, the Trump Organization has talked with Deutsche Bank and a Florida county about delaying payments on some loans and other obligations.
    [​IMG]
    https://www.nytimes.com/2020/04/02/business/economy/coronavirus-trump-company-finances.html

    President Trump’s family company is among those looking for help.

    With some of its golf courses and hotels closed amid the economic lockdown, the Trump Organization has been exploring whether it can delay payments on some of its loans and other financial obligations, according to people familiar with the matter and documents reviewed by The New York Times.
    Representatives of Mr. Trump’s company have recently spoken with Deutsche Bank, the president’s largest creditor, about the possibility of postponing payments on at least some of its loans from the bank.

    Other companies may be able to tap into a $500 billion rescue fund that will be administered by the Treasury Department. But the economic bailout package, which Mr. Trump signed into law last week, specifically barred the president and his family from access to that money.

    Deutsche Bank has lent Mr. Trump and his companies about $2 billion since 1998, the only mainstream financial institution consistently willing to do business with Mr. Trump and his companies. At the time he became president, Mr. Trump owed the bank about $350 million, including on loans to buy and renovate the Doral golf resort near Miami and to develop a luxury hotel in the Old Post Office building in Washington.

    Both properties are suffering in the economic shutdown. In response to Miami-Dade County’s rules, the Doral resort has ceased all operations, while the Washington hotel continues to operate, albeit with few guests and with its restaurant and bar closed. The Trump Organization rents the Washington property from the federal government, and the company had been soliciting bids from potential buyers for the lease, a process that is now on hold, The Washington Post reported.

    Mr. Trump received the loans for those properties, as well as another related to his Chicago skyscraper, from 2012 to 2015. Because of his history of defaults and bankruptcies, Deutsche Bank insisted that Mr. Trump provide personal guarantees on those loans, meaning that the bank has recourse to his personal assets if he were to stop paying back the money.

    Ever since Mr. Trump’s election, Deutsche Bank executives have been fretting about what would happen if he were to default, according to bank officials. Seizing the president’s personal assets would be an unattractive proposition. But opting not to collect on the loans would be the equivalent of an enormous financial gift to Mr. Trump, whose administration wields enormous power over the bank. Deutsche Bank’s operations in the United States are supervised by federal regulators, and the Justice Department has been conducting a criminal investigation of the bank.


    Queue...... IGW, our local economic fighter for the plight of the Common Man...

     
    12 sglowrider, Apr 5, 2020
    Last edited: Apr 5, 2020
  13. Courtsensetwo

    Courtsensetwo Hall of Famer
    Expand Collapse

    Joined:
    Oct 16, 2004
    Messages:
    20,691
    Likes Received:
    7,598
    Not surprising. Hospitality hit hard and can't carry out or deliver.
     
  14. kurt cloverdales

    Expand Collapse

    Joined:
    Mar 3, 2020
    Messages:
    99
    Likes Received:
    59
    he built a great company, a amazing company, some people tell him its the greatest company ever, made billions its a fantastic company , this must be fake news
     
    sglowrider likes this.
  15. twenty02

    twenty02 Hall of Famer
    Expand Collapse

    Joined:
    Jan 28, 2011
    Messages:
    16,168
    Likes Received:
    14,064
    There's no way possible $350b will cover how they've set this up. I expect the money to be gone in a week.
     
    mcmurtry66 and Spartans9312 like this.
  16. TDHoosier

    TDHoosier All-American
    Gold Member
    Expand Collapse

    Joined:
    Sep 11, 2001
    Messages:
    6,802
    Likes Received:
    3,121
    If people like your friend take the money when not needed then yes it could have a negative backlash. I believe we (I work for a community bank that is approved to offer the "pay check" loan) have taken over 200 applications and have been able to fund most of what have been worked. Keep in mind that is 200 applications in just over one business day. There is some burden of proof after the 8 weeks to see what part of the loan is "forgivable" and what part needs to be paid back. If used correctly it could have a good affect if used improperly it could have a negative effect that will be bad.
     

Share This Page