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CARES Act - Unemployment and Small Business Benefits

Discussion in 'GatorNana's Too Hot for Swamp Gas' started by G8trGr8t, Apr 1, 2020.

  1. G8trGr8t

    G8trGr8t Premium Member

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    new EIDL guidance. $1k per employee up to $10k grant instead of standard $10k per applicant

    Stimulus: EIDL Grant For Small Businesses Will Be $1,000 Per Employee, Per SBA Clarification - Doctor Of Credit

    • EIDL Loan advances will start to be distributed this week. $1000 per employee up to $10,000 max

    • EIDL Loans - IF YOU DID NOT APPLY THROUGH THE STREAMLINED PROCESS WHICH STARTED LAST WEEK, SBA request that you visit https://covid19relief.sba.gov/#/ and reapply with the secure streamlined process. You will not lose your place in queue with your original EIDL loan application.

    • EIDL loans will not require a personal guarantee for loans under $200,000

    • EIDL loans will not require real estate collateral for loans under $500,000. SBA will be looking be best available lien priority on all business assets or other business assets.
     
    Last edited: Apr 6, 2020
  2. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    We just got notice of approval for our PPP loan.
     
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  3. channingcrowderhungry

    channingcrowderhungry Premium Member

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    What bank? I'm still waiting to hear of anyone actually receiving funds. I'm guessing that's still a ways out .
     
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  4. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    ARVEST Bank in Joplin Mo. They are our primary lender, so we went through them. They said we were one of their first applications. They had a few snags but we submitted all of the final info to them last Friday and got the approval today.
     
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  5. channingcrowderhungry

    channingcrowderhungry Premium Member

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    Great news
     
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  6. gator7_5

    gator7_5 GC Hall of Fame

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    I assume you mean SBA approval. When did they funds will be dispersed?
     
  7. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    The SBA funded it today. Don't know when we get the money though.
     
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  8. RealGatorFan

    RealGatorFan Premium Member

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    Awesome news! My wife got hers today as well. That 800lb gorilla has gotten a lot lighter. The funds hopefully by the end of the week and we opened a line of credit on our biggest asset - our home.

    But I knew this was going to happen - basic math told me the entire $2T should have been small business loans.

    https://www.msn.com/en-us/money/markets/treasurys-mnuchin-seeks-additional-dollar250-billion-to-replenish-small-business-coronavirus-program/ar-BB12hgpg

    I think it was Denmark that hit the pause button paying 90% of everyone's wages until June and giving businesses enough cash to pay all of their bills. To the tune of $2.5T. That's a country with a population of Dallas-Ft Worth. I figure to do that here in the US, the Fed would need to have a $147T loan program with an equivalent infusion every 10 weeks until the economy could reopen.
     
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  9. swampbabe

    swampbabe GC Hall of Fame

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    You think all of the money should have gone to small business and no funds for unemployment? Just making sure I understand.
     
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  10. WarDamnGator

    WarDamnGator GC Hall of Fame

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    Thanks for posting this. I applied for the EIDL because I have a very small business and thought the $10,000 grant would be enough ... I just applied for the PPP based on the reduction to $1000 per employee. Not sure if PPP is broke yet, though, saw Trump saying will ask congress for more money. Thankfully I have a small business account and credit card at BofA, and the application was easy so far.
     
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  11. G8trGr8t

    G8trGr8t Premium Member

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    which bank?
     
  12. gatorpa

    gatorpa GC Hall of Fame

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    I'm a IC LLC soleprop, get one 1099, so far no impact but it could happen. From what I have seen the EIDL is where I would go to apply, but I thought it wasn't open until the 7th?

    Any answers from anyone is appreciated.
     
  13. gaterzfan

    gaterzfan GC Legend

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    Here’s a discussion of the PPP for a sole proprietorship, etc. Basically, the average monthly payroll for which you can receive 2.5 times as a loan, is you Schedule C net divided by 12. The Schedule C net is limited to $100K.

    With regard to forgiveness of a PPP loan made to a sole proprietor, I’ve not found any info on how that will be determined. Presently, I’m going to assume it’s 8 weeks of current payroll calculated as 15.38% (8/52) of the 2019 Schedule C net as limited to $100K.

    Hoping to find some info, soon.

    How the Paycheck Protection Program Affects Self Employed People | Wendroff & Associates, CPA

     
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  14. gatorpa

    gatorpa GC Hall of Fame

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    Much thanks
     
  15. 96Gatorcise

    96Gatorcise GC Hall of Fame

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    Thank you, this is exactly what I needed to know what documents I needed.
     
  16. RealGatorFan

    RealGatorFan Premium Member

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    That's not what I meant. I meant that $2T was not big enough to cover small businesses. In fact, I said it will take $147T to businesses and pay people 90% of their wages if we modeled after Denmark's stimulus. We all know that's not possible but the only way to guarantee that we start back where we left off, that's what it would take. Just over the weekend Senate republicans said another $250B needs to be added to the stimulus. I did the math when they said how much and knew there was no way all small businesses were going to be saved. 30 million small businesses, 22 million that are sole proprietor (the owner is the only employee) meant that the average small business would get $12K. If companies can get approved 2.5 months of their 2019 average monthly payroll, you knew that roughly a third would get approved leaving the other 67% closing forever. We'll see but there isn't much more the Treasury can do. If this crisis is Texas Holdem, the Fed went all in with a pair of 3s. They are banking on us going back to work by the end of May.
     
    Last edited: Apr 9, 2020
  17. swampbabe

    swampbabe GC Hall of Fame

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    Thank you for the reply, the way you wrote it was unclear as to your meaning.
     
  18. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    McConnell is trying to add $250 billion to the Payroll Protection Program right now. No other changes to the bill, just adjust the total amount.
     
  19. gaterzfan

    gaterzfan GC Legend

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    Just came across this re unemployment

    (CNN)On top of ventilators, face masksand health care workers, you can now add COBOL programmers to the list of what several states urgently need as they battle the coronavirus pandemic.

    In New Jersey, Gov. Phil Murphy has put out a call for volunteers who know how to code the decades-old computer programming language called COBOL because many of the state's systems still run on older mainframes.
    In Kansas, Gov. Laura Kelly said the state's Departments of Labor was in the process of modernizing from COBOL but then the virus interfered. "So they're operating on really old stuff," she said.
    Connecticut has also admitted that it's struggling to process the large volume of unemployment claims with its "40-year-old system comprised of a COBOL mainframe and four other separate systems." The state is working to develop a new benefits system with Maine, Rhode Island, Mississippi and Oklahoma. But the system won't be finished before next year.


    Wanted: People who know a half century-old computer language so states can process unemployment claims - CNN
     
  20. G8trGr8t

    G8trGr8t Premium Member

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    Senate deadlocks on latest coronavirus relief package for small businesses

    WASHINGTON — Senate Democrats on Thursday blocked a Republican effort to add $250 billion to an overwhelmed small business loan program, the latest political standoff in the weeks-long effort to pump trillions of federal dollars to businesses and families dealing with the fallout of the coronavirus pandemic.

    Senate Majority Leader Mitch McConnell, R-Ky., tried to approve $250 billion in new funding for the Paycheck Protection Program during a brief Senate session through a fast-track method that requires no objection from senators.

    There is widespread, bipartisan support to add money to the small business program. But Democrats say they won’t agree to the new spending unless there are safeguards to ensure all businesses can access the capital, including directing some of the money to small banks. They also wanted to add $100 billion for the healthcare system, and $150 billion for state and local governments.
    …………………..…………………………...
    Democrats say the small business program is structured on a first-come, first-served basis that benefits small businesses with existing relationships with their banks. Very small businesses have been unable to access it, they say.

    “Many unbanked people (or those) who are under-banked are unserved on that basis,” said House Speaker Nancy Pelosi, D-Calif., in an NPR interview Wednesday. “For the next $250 (billion), we really need to have a percentage of that, $60 billion, that would go to something called community development financial institutions and that includes a number of things that they would open the way for others to participate.”
     
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