Bailout and payroll

Ok you guys got all sidetracked. No one knows anything yet. We will soon find out. Got my application filled out. Looking forward to the 10k, already spent the money, Lol. I have to mention, I had a strange feeling somewhere in Russia a scam artist is cleaning out my bank account as we speak. Oh well, what’s a few hundred bucks, nothing ventured nothing gained. I’m officially on the dole now. First time for everything. Seriously may need every penny in the near future. Hopefully some of this stimulus will work for our benefit. The Country needs small business, even if it’s 1 Truck operations like mine. The other stuff is to help stave layoffs and shuttering of larger small businesses. Though a .05% long term loan might just be the ticket, if used wisely. Might be a ball and chain, like student debt if not. Very tempting, Think I’ll pass on that can of worms. Don’t like the Government in my Business any more than necessary. But I’m sure some could use funds to grow a company quickly, once its all over. Be careful what you pray for, just might get it.

 

That's hilarious! I was thinking the same thing! LOL

 

Received an email from the White House Communications folks, anyone can sign up for it.

Here's a snippet from the email:

"The $350 billion Paycheck Protection Program “will immediately get cash in the hands of small and midsize businesses to keep Americans tied to their jobs.” As long as employers use the loan “for payroll costs like salaries and cash tips, as well as debt obligations like mortgage, rent, utilities, and insurance premiums, it would be forgiven in full.”

 

That language looks like a whole lotta latitude to me.

 

Yeah, but I think the rent and mortgage applies to the property you're using for your business. For us that would be truck payments. I'm getting back to work soon so I'm not going to mess with it.

But you're right it sounds like anyone can come up with a reason to say the debt should be forgiven.

 

I have a 7(a) SBA loan on my truck through a local community bank. I received this word from my bank rep this morning:

"Yes it is. It appears that your loan was an SBA 7a and would definitely qualify for the 6-months of relief. It basically means that the SBA would be paying your loan for 6-months with out penalty of any kind to you as I understand it. Please keep in mind though that at this very moment, I don’t have the form from we will use to enact that process. I will let you know when we do though so that we can get that going."

 

Wow! I need a new trailer, what’s my price, Alex?

 

Here's how I personally handled my situation with the bank I do business with.

I called my rep right when this potential crisis was becoming apparent in February. I assured him that I wasn't going to fall off a cliff in the next few weeks, however, I thought it would be prudent to open a dialog and begin to explore all the various options as they became available. It's becoming obvious to me that it was a good thing I did.

The bank I deal with is a fast track program SBA bank. I have an existing SBA loan through them and too be honest with you, I've been more up to speed on the various aspects of the funding options, etc, and as such, have been able to feed him real-time information at times. That's opened a real nice door with him.

The way I explained it to him was that I could see some potentially ominous clouds on the horizon with regards to our industry during this time. As such, I have believed that it's like getting the sand bag embankment up BEFORE the storm hits, not after it really starts kicking in.

 

So in reality what are the chances of a solo owner operator with own truck trailer to qualify for this?

To be fair, it should be granted first to those who are completely unable to perform their businesses. For example, cleaning maids, or hairdresser saloon owners, bar owners, childcare owners, travel agencies, art galleries, flower boutiques, message cabinets....even those legal brothels in Nevada....you know what I am getting at.
I can still, technically,go out there and make a dime.
I can say that I fear as I have no assurance that in case of contracting Covid-19 I'll be given a respirator, despite that transportation is very essential in times like these.... I also can say that they pay too poor for this to be worthwhile...
I guess the question, I personally have been wrestling with, is whether or not taking that 10 Gs (with possibility of not paying it back) is a little embarrassing while there is still work to do.