itsyourboypookie said:

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Pelayo said:

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itsyourboypookie said:

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Ok. We have more clarity on our EIDL.

We are paying a company 2k to hold our hand through the rest of the process.

Looks like we will qualify for a minimum of 250k, which would require no collateral.

If we go higher, we could collateralize some of our which would essentially drop our interest rate from 6.5% 20 year am to 3.75% 30 year am.

Still not sure how the process works, which is why we hired a guy to help us through it.

He said it will take 4 weeks.

As for the PPP, it looks as if we are somewhere in the que with PayPal. Even though we can't get in contact with them lol.

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Would you pass along your consultant contact?

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Yes. What's best way to contact you?

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augustoandmilton @ gmail

DeangeloVickers said:

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The government passed this bill...you can't get mad at any business who gets money that the government allocated....is $200 too much? Is $200 million too much?!?! Where is the line.

Did Lakers deserve that money? They are a business...they followed the guidelines are trying to do what is best for their business...thy have to pay Anthony Davis and Lebron and they are not working....

Faux outrage over it isnt any better...

It REALLY pissed me off the politicians shaming the companies who got to much...both sides of the isle...YOU PASSED THE DAMN BILL

It's like me telling my kid they can eat ice cream for dinner....getting to the dinner and shaming him in front of the whole family.

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I agree that the politicians who left in these loopholes deserve primary blame. Almost every company (big and small) is taking a hit. No one wants to take a loss even if they can afford to.

Having said that, certain publicly traded companies didn't game this out correctly. In the end some may face public repercussions that exceed the millions they took. For instance, Shake Shack probably spends millions on advertising per year. I imagine they would rather be known for their burgers than for that one time they took millions from a small business loan program while "mom and pop" were iced out. Not a great look for the brand. I don't have any problem with the public push back, just part of the game.

Agoodlittleag04 said:

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Got an email this morning that our app through BOA was submitted to SBA. Really hoping that means we'll have documents tomorrow? The one we did through Intuit hasn't been submitted to SBA yet.

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I'm in the same boat. Looks like big banks are at the back of the line.

Some quick math. Wells Fargo, BOA and Chase could have pushed ~475,000 applications to the SBA. With an average PPP loan at ~111,000 that is around $52.75B from those 3 big banks. There is enough left (as of yesterday) to fit all of that but who knows how the SBA is processing this stuff. In the end it may just come down to what position you were listed in an XML file.

Just an FYI to those who have applied and/or received funds, as well as those complaining about large companies getting money they don't need:

The SBA has now added a significant test for determining borrower eligibility. "Borrowers are required to evaluate their funding alternatives and the SBA will begin to scrutinize borrower's liquidity alternatives to raising funds." Borrowers should be comfortable making the required certification that "current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant" after taking into account current business activity and ability to access other sources of liquidity sufficient to support ongoing operations.. Otherwise, the SBA may seek to determine that you are not eligible and should return the funds.

There is a "no questions asked" deadline to return funds by May 7th. That decision is left entirely to the borrowers (not the financial institution who funded the loan). Note that in those cases, interest would still be due on the amount borrowed for however many days you had those funds.

The above info is fact, while the below is RUMOR:

Determining eligibility will become a problem for the SBA simply based on numbers. They won't have the manpower to verify every one of these. Lenders will likely have an opportunity to certify eligibility in many cases in order to help move the process along. With that in mind, those who received loans from institutions with SBA Preferred Lender status are probably in the express lane for loan forgiveness. The SBA would be more likely to start their number crunching on loans made by PayPal, Square, etc. where they don't have an existing working relationship.

This is NOT to cause panic for those borrowers, it's simply a heads-up that not everyone will face the same scrutiny. If you have a real need for this money and you have your numbers in order, you'll be fine.

Source: my office is an SBA preferred lender, we've been able to access the system with no issues since midnight on Day 1, and this is the info we're getting directly from our contacts within the SBA.

A test after the fact?!?!

It's all unbelievable.....the money is based off payroll ...nothing else.......correct?

....UNLESS you've done very good with your business then you shouldn't have taken it....

Bernie Sanders America sucks

None of this is fair....it hurts...it sucks...but trying to make it "fair" isn't going to happen. Shaming businesses is an embarrassment....if anything I want the companies who have their **** together to get the $$$

Do your foresee this scrutiny applying to all applicants (namely, the first traunch) since the ability to access alternate funds was not a specified requirement in the early applications?

Just wondering if we're going to see a scenario where those that got their hands in the till early were held to different rules than the others.

Proposition Joe said:

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Do your foresee this scrutiny applying to all applicants (namely, the first traunch) since the ability to access alternate funds was not a specified requirement in the early applications?

Just wondering if we're going to see a scenario where those that got their hands in the till early were held to different rules than the others.

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Yes, we believe that this will apply to all recipients regardless of which batch they borrowed from. That's why everyone has until 5/7 to return the money with no questions asked.

Again, not meant to cause any worry. Just making people aware of it as new info becomes available.

DeangeloVickers said:

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A test after the fact?!?!

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There was always going to be a test after the fact. That part isn't new.

RandyAg98 said:

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But the test was "Are you using 75% of this money for payroll and the rest for approved expenses, and maintained your current payroll levels"

and now it is

"Did you really need it? Like really really need it?"

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Exactly.

RandyAg98 said:

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But the test was "Are you using 75% of this money for payroll and the rest for approved expenses, and maintained your current payroll levels"

and now it is

"Did you really need it? Like really really need it?"

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You're 100% correct. But that's not what I was replying to, or at least not how it was worded.

I'm sure some of it comes down to the sole-proprietor side of things who is not keeping/dropping employees but requesting assistance for themselves.

jeffdjohnson said:

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Quote:

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The SBA has now added a significant test for determining borrower eligibility. "Borrowers are required to evaluate their funding alternatives and the SBA will begin to scrutinize borrower's liquidity alternatives to raising funds."

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This doesn't make sense to me (maybe I am misinterpreting it). The purpose of the "Paycheck Protection Program" is to keep employees on payroll for ~3 months, ostensibly in the hopes that the economy begins to recover. If a business owner notices a loss in gross income then they must scrutinize their variable expenses. One of the biggest variable expenses is often labor. Therefore the easiest way to continue being profitable is to cut labor. Not to mention that if gross income is down, then you likely have an excess of labor anyways.

So of course owners could seek a loan to keep all current employees on payroll. Doing so would only guarantee a loss in profit. Businesses aren't incentivized to seek out loans to pay for employees that they don't need. However the PPP loan would be used to continue paying for labor in cases where a conventional loan would not have been sought out.

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All of that is true. And most of the companies that you're describing will be just fine. But you're also talking about cash flow, whereas these new details (to me) pertain to available liquidity.

For example, one of our customers has a few dozen entities that he controls, and he borrowed a total of about $2MM under the PPP. He's taken the same kind of hit to his monthly cash flow that you just described. But he's also got a net worth of about $85MM and somewhere around $20MM in available liquidity. He's not the Lakers, but he's also not Mama's Bakery on Main Street. The program wasn't meant for people like him, and it wouldn't surprise me if he gives it back.

In addition, Treasury Secretary Steven Mnuchin said on Tuesday April 28th that the government will audit any company taking out more than $2 million from the small business loan program.

Borrowers must also certify they understand that knowingly making a false statement to obtain a guaranteed loan from the SBA is punishable, depending on the circumstances, by imprisonment of up to thirty years and/or a fine of up to $1,000,000.

RandyAg98 said:

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But the test was "Are you using 75% of this money for payroll and the rest for approved expenses, and maintained your current payroll levels"

and now it is

"Did you really need it? Like really really need it?"

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So this has me confused. My wife runs a childcare center with 7 employees. Since mid March, enrollment and therefore revenue have decreased significantly. To offset the difference we had to reduce our employees hours about 35-45 percent, and my wife barely takes a salary. This is not sustainable either for us or for our employees but technically we are still operational. My biggest worry is if we have to shut down (if my wife or one of the employees gets it) or if any more kids drop out. I know we need it, but who gets to determine if we really really need it.

As an aside, we have applied but haven't even been approved yet.

For your situation, I would worry more about the fact that one of the stipulations for forgiveness is that you maintain the same levels of payroll you had before. That is technically the purpose of the loan is to allow you to continue to pay employees despite reduced revenues.

DeangeloVickers said:

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In addition, Treasury Secretary Steven Mnuchin said on Tuesday April 28th that the government will audit any company taking out more than $2 million from the small business loan program.

Borrowers must also certify they understand that knowingly making a false statement to obtain a guaranteed loan from the SBA is punishable, depending on the circumstances, by imprisonment of up to thirty years and/or a fine of up to $1,000,000.

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Correct. This is what I'm talking about, but it puts actual dollar amounts to it. When I said this was for people complaining about the large companies getting money, this is what I was referring to. I'd heard $1MM, but this is correct - it's $2MM.

100% agree and our intent, if approved, is to bump everyone back up to 40 hours.

In fact, we intend to pay everyone their 40 hours even though they'll likely still be working the reduced hours due to lower enrollment to help offset their reduced income these last few weeks.

Pelayo said:

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itsyourboypookie said:

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Pelayo said:

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itsyourboypookie said:

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Ok. We have more clarity on our EIDL.

We are paying a company 2k to hold our hand through the rest of the process.

Looks like we will qualify for a minimum of 250k, which would require no collateral.

If we go higher, we could collateralize some of our which would essentially drop our interest rate from 6.5% 20 year am to 3.75% 30 year am.

Still not sure how the process works, which is why we hired a guy to help us through it.

He said it will take 4 weeks.

As for the PPP, it looks as if we are somewhere in the que with PayPal. Even though we can't get in contact with them lol.

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Would you pass along your consultant contact?

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Yes. What's best way to contact you?

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ail

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Partner should be emailing you

Our PPP funded today.

No email saying we were approved.

No contact at all.

Just logged in and it said it was funded, checked bank account and it was there.

Through PayPal?

TAMC11 said:

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Through PayPal?

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Yes.

Good to hear. I applied with Chase on April 6 and PayPal on April 20 after the first round ran out. Got an email from both of them within an hour of each other tonight saying the application had been submitted to the SBA. I guess we'll see what happens.

TAMC11 said:

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Good to hear. I applied with Chase on April 6 and PayPal on April 20 after the first round ran out. Got an email from both of them within an hour of each other tonight saying the application had been submitted to the SBA. I guess we'll see what happens.

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Looks like big banks might get processed today. Looks like the SBA went out of its way to ensure that small banks were first in line.

That's interesting about Chase. We submitted to them on April 3rd and 6th. Aside from a form confirmation number, we haven't heard anything. Also applied with PayPal on the 17th and still in review.

Luckily we found a local bank that would take our application after the 1st round and submitted on Monday. It was approved by the SBA already and just waiting to sign the loan docs. Our loan is definitely under Chase's average, so who knows what happened there.

Real long story short...what can I do if my bank submitted the wrong numbers and I was funded the incorrect amount? (I was shorted) Do I have any course of action?

"Good news You've been assigned a SBA loan identification number"

That was quite the interesting journey. Good luck to those still waiting.

itsyourboypookie said:

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Our PPP funded today.

No email saying we were approved.

No contact at all.

Just logged in and it said it was funded, checked bank account and it was there.

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Same here. I applied April 3rd directly on SBA website. I never received a confirmation email or anything that the application when thru. I waited about 2 weeks and called them, and they couldn't find an application without a confirmation number. So i assumed that it was lost somehow OR it was because i applied directly and didn't go through a bank.

Started talking to banks, they weren't taking applications since the program ran out of money. When it was funded for round 2, started talking to banks again. And before I could get an application in with the one bank that would take new applications, I looked into my business account and it was funded.

I don't recall every putting an amount. And I received no correspondence to know what the expectations are for the forgivable portion.

TLDR - applied to SBA on 04/03. Never heard back, not even a confirmation. Assumed application was lost. It was funded in my business bank account 04/29.

jeffdjohnson said:

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"Good news You've been assigned a SBA loan identification number"

That was quite the interesting journey. Good luck to those still waiting.

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Just got the same email. What a relief.

jeffdjohnson said:

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"Good news You've been assigned a SBA loan identification number"

That was quite the interesting journey. Good luck to those still waiting.

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Woke up to the email this morning. Nice little start to a Friday.

My wife's company got an email notification earlier this week that Chase had submitted their loan application to the SBA. It was originally filed with Chase back on 4/5 or 4/6.

This morning she received an email confirmation that they had been approved.

I still think people should permanently move to small local banks.