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  1. #1
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    Covid-19 Shelter in Place: Paypal stopped my repayment drafts!

    I am currently in a deal with Paypal.

    To see the details of the deal I made with them, see the post...
    My 2019 AMEX and Paypal Offers
    Basically it had currently boiled down to an 83 week deal...
    $105,566.73 / $99,523.33 = 1.060 Effective Rate.
    83 Week Interest rate = 6.0%
    52 weeks / 83 weeks = 0.6265
    0.6265 x 6% = 0.03759 = 3.759% Annualized Factor Rate

    Anyway,, I called them and asked them what they're doing for merchants that are affected by the Covid-19 issues..

    To my delight, they said they would stop drafting my account for 4 weeks starting immediately, and for me to call back and see what additional options I have in about 3 weeks.

    Cool!

    I suspect it is going to get pretty bad... A shelter in place starts for my county Monday night (3/23/2020) 11:59PM. Where as I am not allowed to even go into my business to ship web orders. I am supposed to stay in my house for I don't know how long... WTF!

    So I will soon be calling every 1 of my liability accounts (personal & business) and asking what my options are...

    My Lawncare provider.
    My Pest control provider.
    My security alarm provider.
    All my credit card providers.
    My credit card processing provider.
    My payment gateway provider.
    My webhosting provider.
    My eCommerce shopping cart provider.
    My email marketing provider.
    My online shipping label provider.
    My Google Ads representative.
    My Facebook Business Ads representative.
    My Adobe Software as a Service representative.
    My Auto financing companies
    My Lawyer.
    My utility companies.
    My insurance companies.
    My Landlord for my brick & mortar business.

    Did I miss anything? I think that is a list of every contracted thing that I spend money on.

    1st thing 1st,, you have to stop the bleeding right! And in this scenario the current bleeding is cash via any kind of liability/expense account!

    So worst case scenario, I am never able to recover from this what happens in regard to the Paypal deal I am in?

    Do I file bankruptcy and it all gets sorted out then?

    I have no clue how the other side of the coin works. I have an 800 credit score and have all ways paid my debts. So with all my new found time I am trying to learn a lot about how all this works and what's the best exit strategy so that I am prepared as best I can be.
    Last edited by Winning; 03-23-2020 at 03:02 AM.

  2. #2
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    So today is my 1st day under shelter in place.

    I haven't made it through my entire list. But the companies I have called so far are extending huge discounts, waiving monthly fees but still providing services, not charging late fees and deferring payments for months.

    I am hoping I can cut monthly expenses by 75% across the board. That's a little aggressive but I'm up for the challenge.

  3. #3
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    Quick update...

    So years ago I registered my company as an LLC and elected to be treated as a S corp. Due to that, every quarter I submit payroll taxes for my self and my employees.

    Because I pay payroll taxes on my wages, I deduced that even though I own the business, that I am still eligible to file for unemployment!

    I looked up info, and confirmed that is correct.

    So I just finished submitting my unemployment claim.

    At the end of the Unemployment Application, it told me all these various thing I have to do...
    * Waiting Week, something about not being able to be paid the 1st week of a claim..
    * Register for Work on some website in the next 3 days...
    * Search for Work on the website, and they even tell you how many searches you have to do.. On my application it says I must complete 0 searches though..
    * Request Payment, Every 2 weeks I have to submit some sort of payment request..

    There are some positives in going through all of this. I am having to deal with new things that I have never had to deal with before. Also I am having to learn new systems that I have never had to use before.

    I am just adding tools to my toolbox so to speak! Which will make me an even better "merchant".
    Last edited by Winning; 03-25-2020 at 05:37 PM.

  4. #4
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    Another Update, To my developing story..

    So I just read through some details regarding the new stimulus package at https://www.cnn.com/2020/03/25/polit...rus/index.html.

    "In an unprecedented expansion of unemployment insurance, the federal government would give jobless workers an extra $600 a week for four months on top of their state benefits, which range from $200 to $550 a week, on average, depending on the state."

    "In addition, lawmakers want to add up to 13 weeks of extended benefits, which would be fully covered by the federal government. Currently, state unemployment checks last up to between 12 weeks and 28 weeks, depending on the state."

    So based on my understanding of what I read, they are ready to give a family of 5 that is unable to work due to Covid 19 a lot of $$$$$$....

    $3,900 in a 1 time stimulus check.
    Which is comprised of $1200 for mom. + $1200 for dad. +$500 for child 1. +$500 for child 2. +$500 for child 3.

    Plus $9200 per month ($2300 per week) in unemployment benefits.
    Which is comprised of $550 per week, State unemployment for Dad. + $600 per week, New 4 month Federal unemployment benefit for Dad. + $550 per week, State unemployment for Mom. + $600 per week, New 4 month Federal unemployment benefit for Mom.

    So that is a total of $13,100 possible income that 1 family could receive the 1st month, then $9200 per month for 3 months after that, then $4,400 for the remainder of the state unemployment window.

    Jesus Christ! did I do that right?

    I guess since the USD (fiat money) is not backed gold (gold standard), the government can just print an unlimited amount of it. This stimulus package shows just that! But what will this large amount of paper money do to inflation?

  5. #5
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    Update!!

    So today I read that "President Trump issues major disaster declaration for Texas".
    https://www.whitehouse.gov/briefings...declaration-6/

    Here in Texas we have had our fair share of tornadoes and hurricanes in the past in which some part of Texas was declared a federal disaster area. But fortunately it has never affected me, so I have never had to understand the inner working of exactly what that means when you have losses that are covered under the federal disaster declaration. So this is another new process and system I need to figure out so I can best utilize any benefit that maybe afforded to me.

    In the link to the declaration I posted, 1 statement in particular stood out to me..

    "The President’s action makes Federal funding available for Crisis Counseling for affected individuals in all areas in the State of Texas."

    So then I search for info regarding what is "Crisis Counseling".

    Which leads me to "Crisis Counseling Assistance and Training Program Grants"
    https://hhs.texas.gov/doing-business...program-grants

    That link has pages and pages of documents regarding how it all works..

    On the first page the mission statement seems to be .

    "...the state CCP program. It is administered within the Disaster Behavioral Health Services branch of HHS and provides short-term stress management and crisis counseling to individuals and groups having psychological reactions to large-scale, presidentially declared disasters. By providing emotional support and interventions, Texans Recovering Together CCP grants help people recover from the impact of disasters."

    I haven't read through the entire website yet... But based on what I did read, it seems that if I got too stressed out about the situation and had a nervous break down, this program is what would be used to help me out.

    Adding more tools to my toolbox!
    Last edited by Winning; 03-26-2020 at 11:28 AM.

  6. #6
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    UPDATE!

    So a few days ago I filed for unemployment, and it has already been approved. They must be using some sort of automated system to process this stuff. How the heck did they approve my application in 19 hours, on top of receiving a record number of new applications. I am impressed.

    Here is the exact time table..

    I completed the application online Mar 25, 4PM.

    I received notification that I was approved at Mar 26, 11AM.

    Also to those that may come across this thread and is new to all of this, just like I was. Keep in mind that the payments don't start immediately even though I was approved. In the claim information it states that I can submit a weekly claim for my approved benefit amount beginning Apr 5th. So it looks like you have to put 2 weeks in the hole before you can actually get a check cut. Then after that I can request one every week until the benefit is expired.
    Last edited by Winning; 03-27-2020 at 12:43 PM.

  7. #7
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    Thanks for sharing!!
    Shannon Harris
    Funding Specialist
    888-705-8818 phone
    239-790-2664 fax
    Shannon@StellarBusinessFunding.com
    www.stellarbusinessfunding.com

  8. #8
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    The least I can do is share how I am handling this unprecedented situation. Being able to write out what I am doing and how I am handling this is it's own type of therapy for me. So a big thanks to you and the daily funder community as well.

    It's currently 80°, cloudy, with a 19 mph breeze blowing. I am able to spend a lot of time outside in my hammock.

  9. #9
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    They are already talking about a 4th stimulus package.

    After Three Coronavirus Stimulus Packages, Congress Is Already Prepping Phase Four
    https://www.msn.com/en-us/news/polit...ll/ar-BB11V2JJ

    $2 trillion wasn’t enough: Lawmakers already eyeing another coronavirus response bill
    https://www.wsj.com/articles/after-t...ur-11585483203

    McConnell hits brakes on next economic stimulus package
    https://thehill.com/homenews/senate/...imulus-package

    I find my self sitting in my hammock think about all kinds of things now..

    With these unprecedented spending packages does the Federal Reserve have to ramp up paper money production to volumes that they have only conceptualized in theory?

    How much inventory of the raw goods required to manufacture paper money is stocked?

    With the changing times due to the virus, I wonder what the CDC says about the cleanliness of circulated cash money. Will this pandemic spur a faster switch to a paperless system?

    How do you all feel about guaranteed minimum income? Isn't that sort of what is happening now with all the stimulus checks, grants, and debt forgiveness policies?

    Also as a small business owner, what lessons can be learned, and what business theory can be adopt from what I see going on. What would it mean for my business if I operated through a lens that looked at currency as resource that is unlimited? We have all heard the quote "it's not about the money". What we are going through now really shows us that.. If we don't have it, the Government will just create it out of thin air and give it to you.

    -----

    On a lighter note...

    My currently closed business also included an onsite Photo Studio out of the need to produce imagery for our marketing. I guess you could also say I am a Professional Photographer, because other business do pay me to produce images for them as well. With that being said, I have tons of camera equipment, and I decided to bring some of it home with me. With so much focus on $'s, I decided to photograph a sheet of uncut currency I bought from the Federal Reserve when I went on a tour of the facility back in 2004. (Link to law regarding photographing US Currency)

    Also, while sitting in my hammock I noticed this Wasp building a nest above my back door. Normally I would have knocked it down, but I instead decided to photograph it.

    Enjoy..




  10. #10
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    UPDATE...

    So I have been really successful in stopping the bleeding of cash for this month! So now I can live and go into surgery.

    One expense that I was hoping I could have lowered a lot more was my commercial lease. Unfortunate my landlord still wanted April's payment, but did extend a 27% deferment. Which I am assuming he will want to collect on at some point. So I cut the check, but now I am thinking about next month, and the month after that, and the month after that...

    Some people may think that they should take out loans to be able to keep their business open. But the loan could be just be drawing out the inevitable. Or it's easy to become hooked on the cash and always looking for more. Just be cause a business is open, doesn't mean it is 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".

    So. I think it may be time to take a step back and retreat to fight another day when the odds are more in my favor.

    Next week, I am going to try to find a commercial warehouse space that I can move my operation to. Depending on what I find, I may be able to actually run my business from it when the economy "reopens" when ever that is. Or I may just use it as a storage for a while. Then after 6 months or a year decide if I want to reopen of liquidate. Due to the current shelter in place liquidate, I can't liquidate right now even if I wanted to.

    On a positive note..

    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!*
    Last edited by Winning; 04-03-2020 at 12:54 PM.

  11. #11
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    UPDATE!

    Dallas County's current stay-at-home order will be extended until May 20, said Dallas County Judge Clay Jenkins.
    https://www.wfaa.com/article/news/he...2-06dd2ac783b6

    I am in Dallas County..... Jesus Christ! So if I try to weather this, that will be a total of 3 months that I have to stay closed but still pay my lease.....

    It looks like the writing is on the wall folks!
    Last edited by Winning; 04-03-2020 at 03:40 PM.

  12. #12
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    UPDATE

    So today marks the 1st day I can submit a payment request for the unemployment I was approved for.

    Today I received an automated email at 8:52AM CST from the Workforce Commission with the subject line that reads "It's Time to Request Payment". In the body of the email, included the link that I should click on to be taken to the website that I would login to to request the payment. The problem is that the website will not come up! I am receiving an error page that states "This site can't provide a secure connection, apps.twc.state.tx.us sent an invalid response." I have been trying randomly through the day, to see If I can get through.. But currently no luck. I am sure millions of people are trying to request payment.

    Also I have not received any info about the extra $600 per week payment that the fed is adding to people that qualify for the regular state unemployment program. Maybe once I file the payment request and receive the check, the check will be $600 more than what the state currently shows that I approved for.

    I have completed and submitted the application with my Bank for the Paycheck Protection Program.

    I have completed and submitted the application with the SBA for the Economic Injury Disaster Loan Emergency Advance.

    I am not sure I will take any of the money, but I will cross that bridge when I get there. I figured it would be best to at least go ahead and get in line.

    Will update the thread with any new development..
    Last edited by Winning; Yesterday at 05:32 PM.

  13. #13
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    Quote Originally Posted by Winning View Post
    UPDATE

    So today marks the 1st day I can submit a payment request for the unemployment I was approved for.

    Today I received an automated email at 8:52AM CST from the Workforce Commission with the subject line that reads "It's Time to Request Payment". In the body of the email, included the link that I should click on to be taken to the website that I would login to to request the payment. The problem is that the website will not come up! I am receiving an error page that states "This site can't provide a secure connection, apps.twc.state.tx.us sent an invalid response." I have been trying randomly through the day, to see If I can get through.. But currently no luck. I am sure millions of people are trying to request payment.

    Also I have not received any info about the extra $600 per week payment that the fed is adding to people that qualify for the regular state unemployment program. Maybe once I file the payment request and receive the check, the check will be $600 more than what the state currently shows that I approved for.

    I have completed and submitted the application with my Bank for the Paycheck Protection Program.

    I have completed and submitted the application with the SBA for the Economic Injury Disaster Loan Emergency Advance.

    I am not sure I will take any of the money, but I will cross that bridge when I get there. I figured it would be best to at least go ahead and get in line.

    Will update the thread with any new development..
    Would you turn-down the $10,000?

  14. #14
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    As I listen to a SBA Webinar today - the noraml time frame for the SBA to process a loan application is
    18 to 21 days. The emphasis was on the word "normal" - the conversation today was add another 7 days
    to the processing time frame.
    Dave Lambert
    FC Financial LLC
    dave@fcfinancial.us
    http://www.fcbankcard.com
    1-727-291-7890

  15. #15
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    Quote Originally Posted by WestCoastFunding View Post
    Would you turn-down the $10,000?
    From what I understand, if I take the PPP, but not use it for the approved items I have to pay it back over 2 years at 1% APR..

    So I need to make sure I understand how the fund works if I take the money, but only use it for rent and utilities payments and not hire any employees back. My operation make use of more contractors anyway.

    With the $600 bonus that is added to the unemployment, the numbers maybe be better for the employees to file unemployment vs being on my payroll.

    I think the government messed up a little bit by adding that additional $600 to the unemployment.

    Reread my post #4 in this thread... That is a lot of money people are eligible for with out being on anyone's payroll, and also the companies are not on the hook to do anything.

  16. #16
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    Quote Originally Posted by Winning View Post
    From what I understand, if I take the PPP, but not use it for the approved items I have to pay it back over 2 years at 1% APR..

    So I need to make sure I understand how the fund works if I take the money, but only use it for rent and utilities payments and not hire any employees back. My operation make use of more contractors anyway.

    With the $600 bonus that is added to the unemployment, the numbers maybe be better for the employees to file unemployment vs being on my payroll.

    I think the government messed up a little bit by adding that additional $600 to the unemployment.

    Reread my post #4 in this thread... That is a lot of money people are eligible for with out being on anyone's payroll, and also the companies are not on the hook to do anything.
    The $10,000 would be the EIDL cash advance. Does not have to be repaid.

  17. #17
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    Quote Originally Posted by Yankeeman07 View Post
    As I listen to a SBA Webinar today - the noraml time frame for the SBA to process a loan application is
    18 to 21 days. The emphasis was on the word "normal" - the conversation today was add another 7 days
    to the processing time frame.
    Did they detail with SBA program this refers to?

  18. #18
    Quote Originally Posted by WestCoastFunding View Post
    Did they detail with SBA program this refers to?
    Disaster loans in general.

  19. #19
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    Billionaire Tilman Fertitta Offers Record 15% Loan Rate to Save Empire.

    His company has already drawn $300 million of existing credit lines in full and Fertitta is injecting $50 million of his own cash into the business. The businessman is offering potential lenders an interest rate of at least 15% to participate in a new $250 million loan.

    Read the full article at https://finance.yahoo.com/news/billi...201428078.html

    I find inspiration in stories like this. Here is a guy that probably has more money to last several lifetimes over but is not going out with out a fight. So much so, that he is willing to bet on himself and put 50 million of his own money on the table.

    Also this shows to the small business owner that we are all in this together. We are all treading water right now, just trying to keep our heads above water. Doesn't matter if your business was doing $100k per year, or a $100K per hour. Even the Churches are hurting from this. the Church I attend is short over $50k per week. Plus I do some IT & AV Consultation and Support. Some of my clients are small Churches and they have told me how much they are really hurting right now.

    I have never seen anything like this before. The last supposedly "crisis" that we had was in 2008, but I personally did not feel any effects of that at all. Other than the stock market crashing and peoples retirement funds taking huge losses, that was the extent of the losses that I personally knew about. But this time it's a lot diffrent. Even my kids are feeling this one.. School being cancelled, birthday parties being cancelled, prom being cancelled, weekly gym classes canceled. The kids will also remember this for the rest of there life.. If I ask my oldest child who is in high school about 2008, she would not have a clue about anything that happened. Vs if I ask my youngest child now who's only 4 years old why she can't go to school, she will say "becuase of the Coronavirus germs". I couldn't believe she actually knew the name of it..

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