$10,000 EIDL GRANT

I can see a smaller fleet of 30 - 40 trucks make a good use of the EIDL money. Office building with some warehouse space with 2 docks, small parking lot, 2 dispatchers, 1 girl doing accounting and 1 girl doing safety, 1 man tending trucks (small repairs), 1 man tending warehouse (to load/unload trailers)
Then, of course, the drivers ... maybe 35 .
Let's say the company does not factor and monthly capital turnover is:

$ 220, 000 drivers pay,
$ 42, 000 personel
$ 25, 000 insurance
$ 8 000 warehouse lease
$ 70 000 equipment payments
$ 750 utilities
-------------------
$ 340 000 of monthly working capital.
For such a carrier 1 month of quarantine or shut down means quite a deep hole. Excluding driver and personel pay, who can collect unemployment, it is still $88 000 even if there is nobody at work.

I can only speculate that the $ 700 million equals YRC working capital of up to 6 - 7 months.

 

I think I’ll take the money and buy a boat. Only live once.

 

They extended the ppp applications for 5 weeks. What’s the best way to apply? I don’t do PayPal, and and would rather not deal with my Big Bank. My Credit Union quit processing apps. Anyone have an easy online process? If so, with Who?

 

When can we start signing up for a 2nd round of Gov cheese? I need I need! Gimme gimme gimme!

Now that I’m used to this free money, I’m going to want it yearly. Don’t make me riot.

 

They knocked down a second round of ppp. Extended the first round deadline. I’m just wondering if a new pair of boots, for work Of course , can be purchased with the EIDL. Nice pair of Blue Ostrich Tony Lamas caught my eye. $1200, but worth every penny!!!

 

I looked them up and they looked good but I am not sure where I could wear them.

 

Lol, I almost bought a pair in the late 80s, marked waaay down to $600. Just couldn’t do it!

 

Having slept on it many weeks, making a number of calls to SBA, also personal conversations with people having sound business understanding and achievements , then lastly googling and social media reading or watching, despite part-taking in this thread with a very skeptical tone about the merits of EIDL loan for the most time - especially after the very op of this thread baffled me with his decision of returning it, which made me explore the matter deeper and further, I decided to take it anyway.
Perhaps the most important part of it was my final understanding that personal assets are not included in the collateralized items.

There are still some controversies and uncertainties about its appropriate usage and additional requirements of bookkeeping and collateral but with my amount close to $60K , I'll simply make sure that at any given time I'll have that much available to return.

My plan is to use it up, as it is intended, as a working capital.
1.Fuel
2.Current - regular - trailer payments
3.Insurance payments
4.Ongoing fees and taxes such as HVUT
5. Wages when the PPP fund will be exhausted - it will this month.
6. Parking fees
7. Communication
8. Loadboards subscriptions
9. Normally scheduled maintenance work (only PMs for me and DOT inspections)
10. Accounting fees - payroll processing

For now I will exclude any extraordinary repairs such as overhaul, injectors, turbo charger, radiator replacements, tire purchases - these can be debatable but I decided not to use EIDL for these as I am having difficulties to attribute Covid-19 pandemic to justify these expenses .

Once the EIDL loan is exhausted or even half exhausted - about 1 year if I relied on it exclusively - I will make reevaluation of my business savings accounts and account receivables and at that point will make a determination about the repayment tempo of the loan. However, I will make sure that I am always in a comfortable position to return it as a lump sum too at any time.

Yes. The overall idea of it being a hedge in the times of pandemic prevailed. The current uptick of rates cannot be any indication yet of any better times.

 

I took mine right away. It’s just sitting in the savings account. I don’t think we have seen the worst of it yet? But, I’m betting it’s coming this winter? You think rates are bad now? HA!

I know lots of people not working right now (non trucking) and none of them are worried. Spending money like drunken sailors thinking they will get back to work any day now.

I do hope it all works out and I can just pay it back with a years worth of interest. If not it gives a little more time to adjust or recover if need be?

My personal finances and my business finances are completely separate from one another and I’m all good on the home front for quite some time.

 

People who got the PPP loan are exempt from being taxed because it is considered "discharged debt." They don't have to show it as their income when doing their taxes. WHAT??? Big suckers win again. People who instead get PUA benefits are taxed. Why bigger suckers always get bailed out and can hide money everywhere? They can pay themselves comfortably then start to work when rates jump up and only pay taxes on a portion of their extra income.