Small business loan

[soapy]

WSJ reports that the Massachusetts SBA division is now saying the free grant portion will be $1000 per employee up to $10,000 per application

 

[6t7gto]

Link?

 

[soapy]

Wall Street Journal Thursdays paper. I get it daily so I do not have a link. The SBA also thought at one time they would be using COGS as a factor for the free grant. All this was promised in 3 days after your loan application but that is not going to happen.

 

[6t7gto]

SBA's $10,000 disaster loans come with new caveats

 

[Greg Pack]

Thanks guys for all the info and sharing your personal experience.

 

[Rainway]

WSJ article which cites the reference to $1,000 per employee up to $10,000 total:

SBA Under Fire for Failing to Get Aid to Struggling Small Businesses

A federal program to help small companies weather the coronavirus fallout has failed to distribute funds quickly, according to lawmakers, business advocates and entrepreneurs, many of whom are counting on aid to survive.

www.wsj.com

 

[Rainway]

Also the Fed announced a program to provide liquidity to banks by purchasing the loans that are guaranteed by SBA. The Fed has moved quickly throwing everything including the kitchen sink at Covid. I suspect the logjam is gonna start moving soon.

Fed Preparing to Finance New Small-Business Payroll Loans

The Fed said it would create a new program to finance loans that banks and other lenders make through the government’s emergency small-business lending program.

www.wsj.com

 

[Rfreeman]

Just curious how many of us applied for any type of SBA loans? I have for my other businesses but not either of my car wash locations. I ask because I was told by my banker that the funds are already drying up if not dried up. My banker is from a local community bank here in Dallas-Fort Worth area who sits on the board of the local Small Business Development Center that works tightly with the SBA in this market, personally I would consider him very connected with the situation regarding the disaster relief loans. He also informed me that many of the larger banks , here again in this area, shut down their acceptance of applications within a day or two of the program starting.

 

[Kramerwv]

The shutdown of applications is likely due to problems the sba has with its systems not being able to handle the volume. Why keep taking apps you can’t process?

 

[soapy]

My bank did not have the form to fill out on their website until 3pm on 4/3. I already had supplied them with all the 2019 and first quarter of 2020 sales figures and expenses along with my 2019 payroll figures. As soon as they had it on line I filled out the PPP form so I can't imagine anyone beat me to the punch here but probably did elsewhere. I also filled out the loan application direct with the SBA that day and got a application number. No guarantee that either will get me anything.

 

[KleanRide]

I applied for the EIDL emergency loan but haven't heard anything, nor do I expect to, now.

Sounds like this program is turning into a typical government failure: lots of yap and promise, zero delivery.

 

[soapy]

Just got word that my PPP was approved. It only covers the payroll portion and does not included anything over and above the payroll.

 

[Axxlrod]

Applied for EIDL loan twice so far. Originally on 3/23, and then again on 3/29 after the application was re-written. Haven't heard anything from anybody about it. I read today that there is only $17B allocated for the loans, and that the max loan available, should you be on of the lucky ones to get an approval, is now down to $15K. Not holding out any hope for the EIDL loan now.

I applied for PPP loan on 4/3 via my local bank. Banked there since I opened my first wash in 2002. Branch manager who took my application and docs said he sent it off to their underwriters. Haven't heard of any updates in a week now.

What a circus all this stuff is.

Meanwhile I've got 13 employees staring at me and hoping they will continue to receive paychecks, but business is down over 80%.

 

[6t7gto]

Axxlrod, what was the difference between the 2 apps?

 

[Kramerwv]

Soapy - I thought the ppp loan was average monthly payroll x 2.5? Wonder how you’re only approved for 2.0? Sounds odd but hey an approval is something in this mess.

 

[soapy]

I was approved for 2.5 times average monthly payroll.

 

[6t7gto]

I received this today....

Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

And then it listed the Paycheck Protection Program. So I guess with no employees I'm SOL.

 

[Sequoia]

So I guess with no employees I'm SOL.

Same here. I got the same email today.

 

[soapy]

I got a further update and the SBA has now approved PPP loan, paperwork will be ready next week.

 

[Overachiever]

I received $1000 EIDL advance today. I answered 0 for number of employees when I filled it out on 3/30. I also received that same email last night, maybe you'll have a deposit tomorrow.

I applied for the EIDL loan on 3/23 and received an email on 3/25 saying my application was "in review", but nothing since then.