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Adam, appreciate the question. I am no expert but I'll lay out what it's like from my perspective.

80% of all business is small business.

Right now most are trying to keep employees on payroll and keeping the lights on while burning through cash reserves. I am no different than most small businesses in the country right now. My business (IT services) is deemed essential so I am open. We had one employee decide that he wanted to stay home with his family, so he is the only one. When this clears he will be back without any animosity towards him for his choice.

I would like to see access to capital in the form of low interest SBA loans or equivalent targeted to small business bypassing the standard process. These loans will allow for payroll, rent and general overhead and would be deferred for 6-12 months. Simple really.

The standard process for lending to small business from the SBA is made at the local level via a bank backed by the Fed. The local bank approves the loan based on your credit, business model and history, no different than applying for a mortgage. It is a very good program and helped me when I moved into a larger facility. With everything shut down this is not possible so there needs to be a direct infusion from Washington. How? Not sure. They sure as shit are able to bail out the banks, gm and all the big businesses when needed with a direct infusion so why not small business.

There are disaster relief loans in process at the federal level and my state (MA) has allocated 10,000,000 for small business due to C-19. That's right 10 Million. I am in process of filing for everything that I can but the websites are overloaded and now they they recommend filing at night. Not sure how it is going to work with the CDC guidelines of social distancing and quarantine. The clock is ticking and every day that the politico's squabble is another day closer to closing the doors. MA has extended the closing of schools to the 1st week of May so that creates a new set of issues.

Current federal loans
U.S. SMALL BUSINESS ADMINISTRATION
ECONOMIC INJURY DISASTER LOAN SUPPORTING INFORMATION
U.S. Small Business Administration
ODA Form P-019
DISASTER BUSINESS LOAN APPLICATION
form OMB No. : 3245-0017

Because small business does not have the political juice we don't pay the politico's so we get squat. This is not a left v right thing it's across the spectrum with all of them and it is infuriating to watch them pay off their friends, families and business partners. When I see things in the bill for billions of dollars that have nothing to do with helping the US taxpayer and small business person it is frustrating.

This is the largest crisis I have seen in my lifetime. (I'm 57) and we have seen a lot. People are scared shitless and don't know what to do, watching the poltico's piss and moan is sickening and if anyone thinks that they have YOUR best interests at hand is a fool. They care only about themselves and staying in power.

At the end of the day I, like most people, want to make a living, support my family and do fun things. This has thrown a wrench in all of that for EVERYONE.

Sorry for the rant but everything is so touch and go at the moment. I don't post of FB/twitter or any of that and this is the only platform that I use. I consider this forum a wealth of knowledge, diverse opinions and really cool people. That's why I stuck around after selling my wagon and I have a lease up in 18 months that I am going back to a V. It's a great place to shoot the shit with great members from all walks of the car and life spectrum.
 

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Well my work server was hit last night with a ransomeware virus. We we're lucky enough to be considered essential (construction) at the moment, but this just brought us to a grinding halt. This crap couldn't have come at a worse time.
 

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@m13s I consider this place a wealth of knowledge as well and I appreciate your time and detail, will absorb in entirety ASAP!
 

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Adam, appreciate the question. I am no expert but I'll lay out what it's like from my perspective.

80% of all business is small business.

Right now most are trying to keep employees on payroll and keeping the lights on while burning through cash reserves. I am no different than most small businesses in the country right now. My business (IT services) is deemed essential so I am open. We had one employee decide that he wanted to stay home with his family, so he is the only one. When this clears he will be back without any animosity towards him for his choice.

I would like to see access to capital in the form of low interest SBA loans or equivalent targeted to small business bypassing the standard process. These loans will allow for payroll, rent and general overhead and would be deferred for 6-12 months. Simple really.

The standard process for lending to small business from the SBA is made at the local level via a bank backed by the Fed. The local bank approves the loan based on your credit, business model and history, no different than applying for a mortgage. It is a very good program and helped me when I moved into a larger facility. With everything shut down this is not possible so there needs to be a direct infusion from Washington. How? Not sure. They sure as shit are able to bail out the banks, gm and all the big businesses when needed with a direct infusion so why not small business.

There are disaster relief loans in process at the federal level and my state (MA) has allocated 10,000,000 for small business due to C-19. That's right 10 Million. I am in process of filing for everything that I can but the websites are overloaded and now they they recommend filing at night. Not sure how it is going to work with the CDC guidelines of social distancing and quarantine. The clock is ticking and every day that the politico's squabble is another day closer to closing the doors. MA has extended the closing of schools to the 1st week of May so that creates a new set of issues.

Current federal loans
U.S. SMALL BUSINESS ADMINISTRATION
ECONOMIC INJURY DISASTER LOAN SUPPORTING INFORMATION
U.S. Small Business Administration
ODA Form P-019
DISASTER BUSINESS LOAN APPLICATION
form OMB No. : 3245-0017

Because small business does not have the political juice we don't pay the politico's so we get squat. This is not a left v right thing it's across the spectrum with all of them and it is infuriating to watch them pay off their friends, families and business partners. When I see things in the bill for billions of dollars that have nothing to do with helping the US taxpayer and small business person it is frustrating.

This is the largest crisis I have seen in my lifetime. (I'm 57) and we have seen a lot. People are scared shitless and don't know what to do, watching the poltico's piss and moan is sickening and if anyone thinks that they have YOUR best interests at hand is a fool. They care only about themselves and staying in power.

At the end of the day I, like most people, want to make a living, support my family and do fun things. This has thrown a wrench in all of that for EVERYONE.

Sorry for the rant but everything is so touch and go at the moment. I don't post of FB/twitter or any of that and this is the only platform that I use. I consider this forum a wealth of knowledge, diverse opinions and really cool people. That's why I stuck around after selling my wagon and I have a lease up in 18 months that I am going back to a V. It's a great place to shoot the shit with great members from all walks of the car and life spectrum.
Still think that changing the loss of business exclusion with pass through to the US for the loss, instead of a "loan", would have been the most cost effective and quickest.

Business owners would have been able to apply directly to their insurance companies for the loss, and then the US Gov't reimburse the insurance company dollar for dollar going to the insured.

But it wasn't going to happen.
 

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You’re starting to sound like a Conserv... wait, never mind.
I would say we are getting the worst of both worlds right now. Its not really conservative vs liberal.
We just get poorly thought out handouts for the poor and rampant crony capitalism.
This bill is for sure using a crisis to fleece taxpayers out of money, we will be paying for it in the long run.
 

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business interruption insurance does not cover this. I would expect going forward there will be specific language that names pandemics as an exclusion in your policy
my insurance guy already called me to tell me this but I likely wouldnt have applied. There are times where being a hand shake small business hurts you and this is one of them.

I borrowed money twice from SBA. Once to purchase my commerical real estate where my shop is. It took 9 months to go to closing and an attorney familiar with the process

the other was to repair my Sandy damaged home. It took a year and a half, including finger printing to get $14000 from them. That was the max amount I could get at that time without providing receipts. Keep in mind the person THEY sent to my home wrote up aprox. $90000 in damage.
When literally every home is damaged the guy waving the cash in the air gets his shit fixed first. No way im opening myself up to that.
The process was more involved than when I bought my home

Good luck expecting the government to help you.
 

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business interruption insurance does not cover this. I would expect going forward there will be specific language that names pandemics as an exclusion in your policy
my insurance guy already called me to tell me this but I likely wouldnt have applied. There are times where being a hand shake small business hurts you and this is one of them.
You are 100% correct. Business interruption for this doesn't because of pandemics being excluded.

Would be better to do away with exclusion, sort of like getting rid of the "pre-existing" medical condition in health insurance, and then have the Gov't back stop those dollars that the insurance would pay out, since insurance companies already have teams to evaluate claims. It would likely cost tax payers far less.

But that eliminates the glad handing going on with this by both sides of the aisle.
 

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My home mortgage company- fuck you pay me
My village taxes are due 4/1- Village: Fuck you pay me
My commercial loan however because its SBA backed gave me 3 months with no penalty

calling village town hall and my mortgage company was like talking to Big Paulie
Oh there is a pandemic- fuck you pay me

 

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That, my friend of the brotherhood of speed, sucks.
 

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i just asked if they would waive any late penalty- village hall had the fucking balls to tell me " the governor hasn't told us anything, its still due 4/1" Its village taxes for christs sakes $2700 and they dont even pick up my garbage here at the shop
 

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FYI



Small Business Provisions in Coronavirus Aid, Relief, and Economic Security (CARES) Act
SENATE SMALL BUSINESS COMMITTEE, MINORITY

American small businesses are facing an unprecedented economic disruption due to the novel
coronavirus (COVID-19) outbreak. Cities and states have implemented mandatory closures of public
spaces to ensure social distancing to prevent the spread of the virus, so those difficulties have
only increased.

Congress has reached a bipartisan compromise on a $2 trillion economic stimulus package to address
the economic impact caused by the COVID-19 outbreak titled the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. Division A of the bill, which provides more than $377 billion in
support to small businesses, includes prominent measures from the Keeping American Workers Employed
and Paid Act sponsored by Republican Senators Marco Rubio (Fla.), Susan Collins (Maine), and Lamar
Alexander (Tenn.), as well as the COVID-19 RELIEF for Small Businesses Act of 2020 sponsored by
Ranking Member Ben Cardin (MD.) and all Democrats on the Senate Small Business Committee.

A description of the small business provisions included in the stimulus is below.

Paycheck Protection Program


The stimulus includes nearly $350 billion in funding for a provision to create a Paycheck
Protection Program (PPP) that will provide small businesses and other entities with zero-fee loans
of up to $10 million. Up to 8 weeks of average payroll and other costs will be forgiven if the
business retains its employees and their salary levels. Principal and interest is deferred for up
to a year and all borrower fees are waived. This temporary emergency assistance through the U.S.
Small Business Administration (SBA) and the Department of Treasury can be used in coordination with
other COVID-financing assistance established in the bill or any other existing SBA loan program.

The bill requires the SBA Administrator to set a cap on how much a bank can earn to process loan
applications and prioritize underserved borrowers, including those in rural communities,
minorities, women and veterans.

Emergency Economic Injury Grants

The stimulus includes $10 billion in funding for a provision to provide an advance of $10,000 to
small businesses and nonprofits that apply for an SBA economic injury disaster loan (EIDL) within
three days of applying for the loan. EIDLs are loans of up to $2 million that carry interest rates
up to 3.75 percent for companies and up to 2.75 percent for nonprofits, as well as principal and
interest deferment for up to 4 years. The loans may be used to pay for expenses that could have
been met had the disaster not occurred, including payroll and other operating expenses.

The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL, and
may be used to provide paid sick leave to employees, maintaining payroll, meet increased production
costs due to supply chain disruptions, or pay business obligations, including debts, rent and
mortgage payments. Eligible grant recipients must have been in operation on January 31, 2020. The
grant is available to small businesses, private nonprofits, sole proprietors and independent
contractors, tribal businesses, as well as cooperatives and employee-owned businesses.
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A business that receives an EIDL between January 31, 2020 and June 30, 2020 as a result of a
COVID-19 disaster declaration is eligible to apply for a PPP loan or the business may refinance
their EIDL into a PPP loan. In either case, the emergency EIDL grant award of up to $10,000 would
be subtracted from the amount forgiven in the payroll protection plan.

The bill provides $562 million to ensure that SBA has the resources to provide Economic Injury
Disaster Loans (EIDL) to businesses that need financial support.

Debt Relief for Existing and New SBA Borrowers


The stimulus includes $17 billion in funding for a provision to provide immediate relief to small
businesses with standard SBA 7(a), 504, or microloans. Under this provision, SBA will cover all
loan payments for existing SBA borrowers, including principal, interest, and fees, for six months.
This relief will also be available to new borrowers who take out an SBA loan within six months
after the President signs the bill. The measure also encourages banks to provide further relief to
small business borrowers by allowing them to extend the duration of existing loans beyond existing
limits; and enables small business lenders to assist more new and existing borrowers by providing a
temporary extension on certain reporting requirements. While SBA borrowers are receiving the six
months debt relief, they may apply for a PPP loan that provides capital to keep their employees on
the job. The six months of SBA payment relief may not be applied to payments on PPP loans.

The stimulus also includes a permanent fix that allows SBA to waive fees for veterans and their
spouses in the 7(a) Express Loan Program, regardless of the President’s budget. Under current law,
SBA may only waive fees on 7(a) Express loans to veterans when the President’s budget does not
project a cost above zero for the overall 7(a) loan program.

Paid Leave for Government Contractors


The stimulus includes a provision that provides paid leave for employees working on small business
contracts with the federal government. The measure allows agencies to modify the terms of a
contract to reimburse small business contractors for the cost of providing paid leave, including
sick leave, to employees or subcontractors unable to perform work on-site due to a facility closure
and cannot telework.

Resources for Business Counseling Services


Many large companies are struggling to respond to the unprecedented economic disruption our nation
is facing, so small businesses that have even fewer resources to dedicate to navigating the
economic impacts of COVID-19 must have access to reliable counseling and mentorship services.

The stimulus provides $275 million in grants to the nation’s network of Small Business Development
Centers (SBDCs) and Women’s Business Centers (WBCs), as well as the Minority Business Development
Agency’s Business Centers (MBDCs), to provide mentorship, guidance and expertise to small
businesses. The funding will allow SBDCs, WBCs, and MBDCs to hire staff and provide programming to
help small businesses and minority-owned businesses respond to COVID-19.

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The bill also provides funds for the associations that represent SBDCs and WBCs to create a joint
platform that consolidates information and resources related to COVID-19 in order to provide
consistent, timely information to small businesses.

The SCORE mentoring program and Veterans Business Outreach Center program are encouraged to use the
platform and participate in the COVID-19 education sessions for their volunteer mentors and small
business counselors.
 

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Question for the small business owners here, does this stimulus help you or not enough?

Worth it or not worth it?


Sent from my iPhone using Tapatalk
 

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I’m going to be Fish and Game and cut the line.


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Sorry about that everyone.

So I'll simply 'Log Out', sit back and give this some thought.
As Steve has pointed out in the past; there are other forums to post on. . . .

RD
 

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I'm rather enjoying working from home and I'm truly humbled I have that ability and that I'm still employed. I would never have expected to witness something like this in my lifetime but so much has happened in the last decade or 2 that it almost seems like a build up that is long overdue. Stay safe ya'll.
 

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Just had this hit really close to home, my bigger contract, who ive been working with for 9 of my 10 years of being open, just lost her mom due to covid19 complications. So sad to hear they weren't allowed to see her for the last 2 weeks because she tested positive and now the body is under quarantine for another 2 weeks at least. Really shows there are dynamics of this and pain that not everyone will understand.

On the business front I think I am in the same boat as many, opening my first store front 8 months ago and having a rocky start because our supplier went through a system migration that screwed up their end. Christmas is always slow and march/april is typically where we start to work in some profit into our books. Thats all gone shit sideways and my shop manager went on self quarintine forcing the store front to shut down temporarily.

Fortunately I have no debt and have always saved money for a rainy day with my company, I am positioned to be okay for the foreseeable future but also not how I planned on spending my last 10 years of savings that I sacrificed a lot of family time and effort. Were not even 2 weeks into this in Canada and a shell company for all my cash and walking away from the rest of it is starting sound like a viable plan.

Bail outs up here are a joke, 10% deferred employee wage capped at 25k per company for the year. locked in land tax for 2019 values. some other workers comp perks but really nothing to help when you have a lease and I am fortunate that I dont have product inventory costs.

Not to mention the social shaming if you have a rental property that you are expected to give them relief or waive rent, mean while the banks will defer but you are still on the hook for interest and in some cases wont defer if you are still working (as an owner I am forced too...)

I doubt lockdown will work in canada or the USA unless we collectively pick 2-3 weeks to do it completely. I bet we go through 2-3 two week cycles of locking down and these numbers flare up over and over unless seasonally summer rollers around and help eradicate this. Even then commerce is in an absolute toilet bowl for this year...
 
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