Are you applying?
There is an option for people to modify the amount of the first loan as well. What's the difference?
2nd round of PPP loans, are you applying?
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My immediate thought is whether or not you have been experiencing hardship resulting from your business being affected by the pandemic.
The first PPP round when lockdowns, poor rates, fear and uncertainties indeed were putting people out of business in trucking, the reasons to apply for it were possible to justify.
The requirements for the 2nd round seem awkward. I can see already that for many of us the entire year of 2020 due to its exceptionlly good last 6 months, was way better than the entire 2019. For instance, I checked my books and my revenue for the 2nd quarter of 2020 was indeed 30% smaller than its corresponding quarter of 2019 but the gross revenue for the entire year of 2020 is more than 25% of the one in 2019, thanks to the unprecedented rate spikes in the last 2 quarters.
So unless someone runs a restaurant, health club, fight club, or a daycare for kids then it is a valid question whether you have a good reason to apply for it.
For Owner operators, small fleets and I am sure mega carriers, the recent freight market has not constituted circumstances that could possibly cause hardships to them, unless people were getting sick by the virus in large numbers and had to be quarantined. But it did no look that way, judging by the number of trucks on the road and crowded truck stops.
Of course there comes a dilemma about refraining from taking it while everyone else is applying for it - your competitors muscle up while you are stuck in your internal ethical struggles.
That is very individual decision for everyone. Either way, it will create a lot of different opinions and disagreements, animosities too.Last edited: Jan 21, 2021
Beaver9 Thanks this.
Here's the email I received from a PPP facilitator which explains the criteria for applying for it:
"In general, you may be eligible for a Second Draw PPP Loan if your business:
- Previously received a PPP loan and will have used the full amount of that loan for permitted purposes prior to disbursement of the second draw loan;
- Has no more than 300 employees;
- Can demonstrate at least a 25% reduction in gross receipts in the first, second, third, or fourth quarter of 2020 relative to the same 2019 quarter or for calendar year 2020 as compared to calendar year 2019; or if you were not in business in 2019, you will need to show a 25% reduction in a 2020 quarter as compared to the first quarter of 2020; and
- Meets all other eligibility requirements.
Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Other approved uses for PPP loan funds have been expanded and now include the following: mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
And just like first time loans, up to 100% of the total loan amount and accrued interest can be forgiven if used for forgiveness eligible expenses and all other loan forgiveness eligibility requirements are met.*
If your business would benefit from additional PPP loan funding, please act now. Funding allocated by the US Government for the Paycheck Protection Program is limited. "
I am happy you did so well at the end of the year. For me, it wasn't so great since I don't know what happened to the loads that I backhauled. They disappeared. So, I end up going back empty. So, I am losing a lot more on fuel. Also, my customer did cut rates. He was supposed to bring rates up, but that didn't happen. And I like to stay loyal to my customers.Coffey Thanks this.
How long was the typical length of haul? Out and back the same day? Stay out 1 night and come back the next day? If it's out and back the same day ALWAYS ALWAYS ALWAYS make sure you get enough in it to bounce back empty and still profit. We base everything on one way freight. Anything extra coming back is just cake on top
Didn't need or want the 1st one and same story with the 2nd one ....and don't want the government in my life anymore than nessesary .
I did find it interesting that some carriers whom were not hurting for money by any means ran right to the trough.
Why penalize myself?
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