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?

[mililo4cpa]

Originally Posted by SAUTO

I wonder how they come up with “ up to” 10k. How do they calculate how much you’d get? What about a loan amount? They never asked.

Cash flow per month? All they really asked was gross sales and cost of goods sold...

That's actually a question I've asked many times, and have not received an answer to. Unlike PPP, which has definition to the amount, EIDL is SBA discretion.

So here's what I think: years ago I was on the Mississippi Gulf Coast when the BP Oil Spill occurred. While the physical damage to the business was nothing, the economic impact was quite large.

The economic claims went through FEMA at the time, and it was a function of gross and net revenues before, during, and after the event. The business had to demonstrate the level of impact to FEMA to make the claim. So, I'm going to guess SBA EIDL will be similar. However, to date, there has been no guidance on this where even the FEMA claim under Deepwater Horizon had definition to the applicant.


EDIT: The EIDL is up to $2M, and the initial $10K is supposed to bridge that amount, and has effectively become a grant....I believe that it would be "up to" because the SBA determines that the economic impact is under $10K....should have read your post a little better....apologies.

[Trivers]

US BANK:

Hi,

Thank you for your interest in the Paycheck Protection Program through U.S. Bank. According to your inquiry form, you are not currently a U.S. Bank customer.

At this time, we have emailed the application information to current U.S. Bank customers, beginning with single-owner businesses. That includes sole proprietorships, S-Corps, LLCs, and non-profits, but excludes independent contractors with only 1099 income at the moment. We expect to expand to all types of eligible businesses, independent contractors, multi-owner businesses and multi-owner non-profits in the coming days.

What does this mean for you?
We are building the process to accept applications from non-U.S. Bank customers who have businesses in states where we have branches. Non-customers will require additional, manual verification steps that will add time to the process. We expect to have more information about that process and requirements early next week.

Is there anything you can do now?
We have everything we need from you at this time. If you would like to learn more about U.S. Bank, please visit usbank.com. Please note that opening an account with us will not affect the PPP process.

We will update you again on Tuesday, if not before. For the most up-to-date information, please refer to usbank.com/ppp.

[mililo4cpa]

Originally Posted by Trivers

US BANK:

Hi,

Thank you for your interest in the Paycheck Protection Program through U.S. Bank. According to your inquiry form, you are not currently a U.S. Bank customer.

At this time, we have emailed the application information to current U.S. Bank customers, beginning with single-owner businesses. That includes sole proprietorships, S-Corps, LLCs, and non-profits, but excludes independent contractors with only 1099 income at the moment. We expect to expand to all types of eligible businesses, independent contractors, multi-owner businesses and multi-owner non-profits in the coming days.

What does this mean for you?
We are building the process to accept applications from non-U.S. Bank customers who have businesses in states where we have branches. Non-customers will require additional, manual verification steps that will add time to the process. We expect to have more information about that process and requirements early next week.

Is there anything you can do now?
We have everything we need from you at this time. If you would like to learn more about U.S. Bank, please visit usbank.com. Please note that opening an account with us will not affect the PPP process.

We will update you again on Tuesday, if not before. For the most up-to-date information, please refer to usbank.com/ppp.

Question: Are you walking in off the street, or are you a US Bank customer?

[Trivers]

Originally Posted by mililo4cpa

Question: Are you walking in off the street, or are you a US Bank customer?

The local branch manager has been bugging me to move business to her; so I applied.

The other two banks that I'm waiting on I already bank there.

[Trivers]

EIDL grant states "Up to $10,000".

Anybody know the criteria for obtaining the full amount?

Thanks

[Papachief]

Originally Posted by chiefforlife

I couldnt agree more.

Chase helped me when other banks wouldnt and since then I have been extremely loyal. I have always felt like Chase was leading the business banking environment and would certainly be out front in an event like this.

I realize it just opened Friday and its still in the early stages but when I see how many loans have already been processed it causes me to get anxious about not receiving any help by being late to apply.

I will be in early tomorrow and plan to be all over my rep.

I also have a Personal Credit Union, think I may contact them if I dont get anywhere with Chase SOON.

I enjoy reading your input in this thread and appreciate all who have contributed.

Its funny when you tell someone you got a lot of this info from "Chiefs Planet". Love this place!

I’m in the exact position you are as well. My bank is Wells Fargo and I’m still waiting to get an email with further instructions. I understand your frustration, it makes me nervous hearing about so many loan requests being excepted and still nothing from Wells Fargo!

[mililo4cpa]

Originally Posted by Trivers

The local branch manager has been bugging me to move business to her; so I applied.

The other two banks that I'm waiting on I already bank there.

I’d call her, but the reality, whether right or wrong, is that the big banks are only helping their own. That’s not the guidance they were given, it it’s what they are doing...

[mililo4cpa]

Originally Posted by Papachief

I’m in the exact position you are as well. My bank is Wells Fargo and I’m still waiting to get an email with further instructions. I understand your frustration, it makes me nervous hearing about so many loan requests being excepted and still nothing from Wells Fargo!

I heard rumor that WF was not going to take apps, it then I thought they had. I have no real evidence either way. At any rate, contact your relationship manager if you have one....

[Papachief]

Originally Posted by mililo4cpa

I heard rumor that WF was not going to take apps, it then I thought they had. I have no real evidence either way. At any rate, contact your relationship manager if you have one....

There is a letter up on the website that states they are now only going to issue up to 10B to businesses of 50 or less and non profits. They claim they have the capacity to loan 385B but they are under an asset cap which stems from the past leadership and there actions. They are going to donate all the proceeds from the loans they do fund to charity. You can find the letter on the WF website under small business.
I still qualify but I have a feeling they will go with mostly non profits!
Doesn’t sound good but I will keep my fingers crossed. I will continue to work the bank that I have my personal accounts with and see what happens there. As of Friday they still were not taking apps yet.

[mililo4cpa]

Originally Posted by Papachief

There is a letter up on the website that states they are now only going to issue up to 10B to businesses of 50 or less and non profits. They claim they have the capacity to loan 385B but they are under an asset cap which stems from the past leadership and there actions. They are going to donate all the proceeds from the loans they do fund to charity. You can find the letter on the WF website under small business.
I still qualify but I have a feeling they will go with mostly non profits!
Doesn’t sound good but I will keep my fingers crossed. I will continue to work the bank that I have my personal accounts with and see what happens there. As of Friday they still were not taking apps yet.

Sorry for slow response....been wrapped up this morning:

I guess it would depend on how much you want to push them, or if you'd rather go find another approved lender. If you want to push, use the below docs I've posted before:

https://www.sba.gov/sites/default/fi...%20FINAL_0.pdf
https://home.treasury.gov/system/fil...Fact-Sheet.pdf


I'm re-attaching the SBA Final Rule and Treasury Fact Sheets:
1. any eligible participant (I'm assuming you are eligible) can go to any lender. You are eligible and you want to apply....WF is an eligible lender, they need to allow you to apply
2. First come / first serve program....make notes and records of who you talked to, the time that you talked. Ask if they are recording this call and to note the time stamp. Ask for a call transcript, because later on, if you didn't get your app in, you probably want documentation that you attempted to apply
3. It's a limited resource, so you would like to proceed immediately as to not miss out.
4. It's SBA backed and the diligence requirements / certifications are set. No guidances makes any record of having these additional requirements. Again, you are eligible and want to apply.

Cannot promise this gets you anything more than a "I'm sorry"....which then would lead down another path, but it may be worth trying. but you have to talk with somebody.....

It sucks for sure.....but WF (and the other bigs) are trying to protect their own butts on this...

[Buehler445]

Well shit. Apparently there are gross revenue limits based on the type of business. Farmers is 750K and that knocked me out. Never mind that my margins are ass but whatever. Better check with your bankers. It’s based off the industry code on your tax return.

[Trivers]

Originally Posted by Buehler445

Well shit. Apparently there are gross revenue limits based on the type of business. Farmers is 750K and that knocked me out. Never mind that my margins are ass but whatever. Better check with your bankers. It’s based off the industry code on your tax return.

that sucks!!!!!!!!!!!!!

Even for the EIDL?

[ghak99]

Originally Posted by Buehler445

Well shit. Apparently there are gross revenue limits based on the type of business. Farmers is 750K and that knocked me out. Never mind that my margins are ass but whatever. Better check with your bankers. It’s based off the industry code on your tax return.

I was in contact with a representative for a different reason and he played the "there's help coming" card, which lead me to believe there is something ag specific in the works.

I haven't received a response to my paragraphs of "**** your handout, we need change" response, so maybe he'll double down and let out some more details.

[Buehler445]

Originally Posted by Trivers

that sucks!!!!!!!!!!!!!

Even for the EIDL?

Ag is exempted from EIDL.

They threw some funding at CCC but I have no idea what that will look like.

[Buehler445]

Originally Posted by ghak99

I was in contact with a representative for a different reason and he played the "there's help coming" card, which lead me to believe there is something ag specific in the works.

I haven't received a response to my paragraphs of "**** your handout, we need change" response, so maybe he'll double down and let out some more details.

Yeah. They threw some funding at CCC. The CLA blog I follow said it would be like MFP. But not like MFP. LOL.


I guess there is still LDP and all my shit is in PLC but I don’t remember what the limits are and the 2020 plc money will come in oct 2011.

Oh well.

My stuff isn’t urgent. Outside of this noise I wouldn’t get any revenue until July anyway but my margins were total ass before the end of the world, so things aren’t great. Especially with our weather pattern right now.