Its 2.5 times the average monthly payroll is loan amount. My initial info was no credit score was being used. Key part is 2.5x the employee payroll...most loan amounts will be 50k or less i think.
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Its 2.5 times the average monthly payroll is loan amount. My initial info was no credit score was being used. Key part is 2.5x the employee payroll...most loan amounts will be 50k or less i think.
Indeed
Reality check:
“JPMorgan Chase, the biggest U.S. bank, was the first lender to publicly say what others had whispered: It emailed customers late Thursday to say the company “will most likely not be able to start accepting applications on Friday, April 3rd as we had hoped.“
https://www.cnbc.com/2020/04/02/jpmo...-guidance.html
NBC news is saying that every bank they talked to say they are not ready to do this tomorrow.
What's the over/under on Trump firing Mnuchin? 1.5 months? When huge corps will have been already bailed out and 95%+ of small business still have not received any $.
bank of america is up and running now. the program end june 30th, so no, they will figure this out in the couple of days then do big media push on cnbc with cramer kissing trump and mnuchins ass saying what a great program this is that business owners already got funds.
I said this over a month ago. Time is not on any business owner's side. You must seek all avenues of financing for a business and work ferociously at he same time to cut costs.
I have had 3 companies this week waiting for their bank's to increase their lines of credit. I asked: Under normal circumstances, how long does that normally take and do you have the ability to wait? All three are seeking alternative financing by using an ABL facility of factoring. They are all running a duel path in case their bank says no......which in this environment it's pretty much a give in.....
Chris,
In our life-times have you EVER seen the federal government deploy any kind of stimulus anything during and event or crisis. Hell....people in the panhandle are still waiting for FEMA an other promised assistance from hurricane Matthew......from two years ago. Not to mention....the pipeline of people trying to get this package is massive. It's like going outside, hooking a hose to a fire hydrant, turning it on full blast, and trying to hold hose in your mouth.
Whether it takes 3 weeks or 3 months, how many companies will be able to hold on to employees after missing weeks and weeks of payroll?
Also, while this could help with payroll, it’s not going to do much good when the business collapses due to lack of operating capital.
We are in a massive depression.
SO first this is like nothing in our lifetime. second the government is not deploying the funds, the 100s of approved lenders and banks are. 3rd, yes im skeptical since BofA already said they have 10k apps, but its first come first serve. First ones will get money relatively quickly and last ones will be SOL.
This isnt FEMA or SBA processing. The longer wait will be on back end to get the loans forgiven and how business owners go about proving they use money correctly.
I will give Bank of america a call and see what they say I have available to me. I have been a customer with them since the 90's when they were called NationsBank.
Also, I am not sure I should even take any money. This could be like putting air in a tire with a slow leak in it. Just because a business is open, doesn't mean it will be profitable. My business is along the lines of luxury goods. I am not sure how many people will be wanting to splurge on luxury goods once the economy is back "open".
It is depressing to even think about having to close my 4000 square foot facility and having to disassembly and clear out everything and put it all in a warehouse. But I think I could come out better in the long run if I do.. This could be a setup for a major win for me in the future.
I have been paying a retail commercial lease for 14 years. Perhaps if I do close, then decide to reopen in 6 months to a year from now, I buy a commercial property instead of lease it. With the downtown of the economy I might be able to find a really good deal on a commercial property to buy! #Winning!
BOA told a client of mine he had to have a Business CC in order for them to file the PPP paperwork. Mind you, he has personal accounts AND a business account there.
Got off the phone with the bank..its a mess. If the loan is forgivable to merchant the bank doesnt get reimbursed unless it goes on the balance sheet.
It seems that BofA will only process PPPs for existing clients who have both a business banking account AND a loan with BofA:
“Eligible clients who plan to apply for the Paycheck Protection Program loan should be aware of the following important items:
You must have a pre-existing business lending and business deposit relationship with Bank of America, as of February 15, 2020.”