$10,000 EIDL GRANT

Go for it! Life is short.

 

At least if you need to live in it you’ll have heat and a/c!

 

OK. I was offered the SBA loan in the amount of up to $59K . This is a no joke loan that I would not want to misuse/misapply ( It is not another American Express business credit card ) and some things need to be seriously considered before accepting it. Even though, the loan seems to be easily manageable, the most important thing to remember is the purpose of the loan.

The loan has to alleviate the hardships caused by the Covid-19 pandemic...

I don't see here a room for a new equipment purchase.
Unless, we replace a reefer that was used for the storage of deceased bodies and and due to some sanitary compromise, the unit cannot be returned to "normal" operations such as hauling fresh produce or frozen meats. etc. (although I am not an expert here).

The same goes for purchasing of a new truck. I can't see the rationale behind such a purchase due to the pandemic. After all, the already used equipment did not get sick from the virus and therefore ceased to operate. Acquiring any new equipment directly funded from this loan poses a daunting justification imo.
Perhaps, acquiring a new equipment in different branches of economy would have a better justification (e.g. agriculture/health care) but in the trucking business it is hard for me to logically justify it. Or is it essentially the same?
I'd say buying new truck/trailer is a no go.

Paying off existing business loans (current equipment loans or credit line loans / business credit card loans)... Still, how does it need to be done in order to alleviate the hardship? The hardship in our business caused by the pandemic is reflected in low rates that, in turn, are the result of a country wide lock down. However, the use of the SBA loan to pay off the loans acquired long before the pandemic vs. making concurrent payments (similarly to maintaining payroll through the funds from PPP loan) until the disaster is gone makes a legitimate dilemma of whether the complete pay off with a lump sum can be justified. In other words, I see it as perfectly appropriate to use the EIDL loan to continue making necessary loan payments but they need to resemble the pattern in which such payments were made prior to the pandemic.
I would not want the allevating of the hardship look like boosting the business. Or maybe there is no difference.
These are only my thoughts....

 

You mY not even know what you will need it for yet. I don’t think we have seen the other side of this yet.

I took mine ( although not as much as you) and am putting it in reserves. If I don’t need it before February or so if next year I will reevaluate the need. Right this second it is a buffer in the bank. If I just pay it back in full next year because I didn’t need it, didn’t cost much. If I had to go direct to my bank right now it would be like pulling teeth with out the backing of the government. And they generally love to see me. But no revenue for the last two months would make them nervous for sure.

 

I guess it is better to have it than not to have ii.
Have it but not touch it, unless push comes to shove.

 

Well, I’ve decided to take it, up to 25k anyway. Seems you can park it, in the bank, use it to cover expenses if needed. Why not purchases of equipment. After all if your plan was to buy a reefer in April, but couldn’t because of the shut down. Why wouldn’t be ok to use it for the trailer you were suppisedly planning on buying? I can see the new fancy Large Cars now, along with the SS spread axle reefers. All I want is a fishing boat, a new fifth wheel, kingpins, and tires. I’m sure it can all be easily arranged. Without a hiccup. I seriously think I may need some of the funds, before this is all over. Might as well take it as a hedge against losing the whole ball of wax. I don’t have much, but I’m in the black, with a little bit of a positive Asset/ Liability sheet. Need to keep it that way.

 

Because if you planned to buy it before the pandemic, you already should've had the ability to buy it without using the loan money.

 

But I spent all that money keeping my Truck insurance and health insurance, and lost a bunch of revenue, and will continue losing revenue, due to slow freights/ low rates. Meanwhile I still need a new trailer. That’s my story, and I’m sticking to it.