[iam.mike]

Figuring this is as good a place as any to share this information.

My apparel brand (RibbedTee) has been hit pretty hard as a result of the Covid-19 outbreak.

Sales have plummeted, and are inconsistent/unpredictable at best from day to day.

There are several disaster relief programs businesses like ours can try and take advantage, including EIDL and the Paycheck Protection Program (PPP).

PPP was just released today, and many banks & financial institutions have opened up the application process to existing customers.

We have been a business customer with Bank of America for 12 years.

They just released the PPP program this morning, and come to find out they decided to limit the program to only those businesses bank account customers that have business loans or business credit cards. Even some of those customers are not able to apply.

We have never had a business loan from Bank of America, or a business credit card, so we are unable to apply at this time.

I definitely understand why they may have made these restrictions, as opening up the program to all of the business banking customers would likely have been more of a hot mess than it's already going to be.

Bank of America has a small business community forum, where businesses are posting information of successful application submissions, along with complaints, and/or frustration about the application process from others.

As I've been following it, I see moderators deleting and/or hiding these threads.

I could see them locking threads to prevent the conversations from getting out of control, but they are suppressing & hiding any and all threads (good comments & bad) related to their PPP program -- even those started by the SBC Moderators.

I don't have any false expectations of any of these programs being rolled out smoothly, but I'm a bit disappointed with how Bank of America is handling the Small Business Forum discussions.

As it appears we won't be able to apply for PPP through our business bank, I now have to see if we can apply through any other institutions.

If anyone else here has a business and is applying for PPP, I'd love to hear about your experience so far.

 

[Guest]

Figuring this is as good a place as any to share this information.

My apparel brand (RibbedTee) has been hit pretty hard as a result of the Covid-19 outbreak.

Sales have plummeted, and are inconsistent/unpredictable at best from day to day.

There are several disaster relief programs businesses like ours can try and take advantage, including EIDL and the Paycheck Protection Program (PPP).

PPP was just released today, and many banks & financial institutions have opened up the application process to existing customers.

We have been a business customer with Bank of America for 12 years.

They just released the PPP program this morning, and come to find out they decided to limit the program to only those businesses bank account customers that have business loans or business credit cards. Even some of those customers are not able to apply.

We have never had a business loan from Bank of America, or a business credit card, so we are unable to apply at this time.

I definitely understand why they may have made these restrictions, as opening up the program to all of the business banking customers would likely have been more of a hot mess than it's already going to be.

Bank of America has a small business community forum, where businesses are posting information of successful application submissions, along with complaints, and/or frustration about the application process from others.

As I've been following it, I see moderators deleting and/or hiding these threads.

I could see them locking threads to prevent the conversations from getting out of control, but they are suppressing & hiding any and all threads (good comments & bad) related to their PPP program -- even those started by the SBC Moderators.

I don't have any false expectations of any of these programs being rolled out smoothly, but I'm a bit disappointed with how Bank of America is handling the Small Business Forum discussions.

As it appears we won't be able to apply for PPP through our business bank, I now have to see if we can apply through any other institutions.

If anyone else here has a business and is applying for PPP, I'd love to hear about your experience so far.

Absolutely horrific. Personal customer for 14 years, business for 7. No CC or loan so no PPP for me. The Small business banker I spoke with today was unsympathetic. Shame on them.

 

[Big T]

Figuring this is as good a place as any to share this information.

My apparel brand (RibbedTee) has been hit pretty hard as a result of the Covid-19 outbreak.

Sales have plummeted, and are inconsistent/unpredictable at best from day to day.

There are several disaster relief programs businesses like ours can try and take advantage, including EIDL and the Paycheck Protection Program (PPP).

PPP was just released today, and many banks & financial institutions have opened up the application process to existing customers.

We have been a business customer with Bank of America for 12 years.

They just released the PPP program this morning, and come to find out they decided to limit the program to only those businesses bank account customers that have business loans or business credit cards. Even some of those customers are not able to apply.

We have never had a business loan from Bank of America, or a business credit card, so we are unable to apply at this time.

I definitely understand why they may have made these restrictions, as opening up the program to all of the business banking customers would likely have been more of a hot mess than it's already going to be.

Bank of America has a small business community forum, where businesses are posting information of successful application submissions, along with complaints, and/or frustration about the application process from others.

As I've been following it, I see moderators deleting and/or hiding these threads.

I could see them locking threads to prevent the conversations from getting out of control, but they are suppressing & hiding any and all threads (good comments & bad) related to their PPP program -- even those started by the SBC Moderators.

I don't have any false expectations of any of these programs being rolled out smoothly, but I'm a bit disappointed with how Bank of America is handling the Small Business Forum discussions.

As it appears we won't be able to apply for PPP through our business bank, I now have to see if we can apply through any other institutions.

If anyone else here has a business and is applying for PPP, I'd love to hear about your experience so far.

I applied for my manufacturing business, at the suggestion of my banker. The application & process was simple, though accurately presenting all information was time consuming (several days of my controller, my outside CPA firm, and coordinated by my banker).

Everything submitted to the bank, mid-day Thursday, and Friday, late morning, I got a call from my banker, that the application had changed and we had to re-submit, which we did in about 30 minutes. I was told re-submitting would have no effect where we were in line. As of 11:00AM, Saturday, I still have no reply.

I am wondering how so many got approved, yet others have not yet heard anything.

In closing, Mikel, do a web search for a SBA approved funding source and you can submit through them. Their only job is as a front end for SBA programs.

 

[iam.mike]

do a web search for a SBA approved funding source

@Big T - thanks for sharing your experience. Sounds like it went rather smoothly.

I did use the SBA website "finder" tool to locate 7-8 different lenders in our area & emailed all of them. For those that have replied so far, they've all said the same thing -- they're assisting existing clients only at this time.

I will contact more, but I suspect my next pass at lenders will yield the same result.

 

[Big T]

Might be time to throw a "Hail Mary", and go to one of the big boy sources, that will profit on the origination fees. I'll throw a few names out, that at one time were involved in SBA lending, though I don't know, if at the present. Those would be the likes of GE Financing, UPS Capital, Ally Bank and so forth.

If you need anything else, maybe we should PM, for the simple reason this payroll program may elicit harsh political opinions, or socialist allegations.

 

[iam.mike]

Thanks @Big T -- Appreciate your support and the suggestions.

Will PM you if/as needed

 

[Big T]

Thanks @Big T -- Appreciate your support and the suggestions.

Will PM you if/as needed

Will be glad to help in way I can.

T

 

[iam.mike]

@Big T - Well, looks like BofA opened up their PPP program to more businesses, but didn't send out any communication of it other than responding to complaints on Twitter.

Discovered it by accident.

Decided to visit the application link again to see if there were any changes, and sure enough, instead of blocking us, they allowed me to fill out and submit an application.

Now, let's see what happens.

 

[Big T]

@Big T - Well, looks like BofA opened up their PPP program to more businesses, but didn't send out any communication of it other than responding to complaints on Twitter.

Discovered it by accident.

Decided to visit the application link again to see if there were any changes, and sure enough, instead of blocking us, they allowed me to fill out and submit an application.

Now, let's see what happens.

Wishing you success, if either of us qualify, we'll post here! If not, well, let's keep our sour grapes to ourself!

 

[Big T]

I got my approval notification today. Anyone that desires to communicate about it, please PM me, or post here.

 

[iam.mike]

@Big T - congratulations!

If you can believe this, I got a call yesterday from person helping Bank of America process PPP submissions, and she had some additional information about what we could submit that wasn't on any of the original information provided by BofA.

Got me largely squared away, and I uploaded some docs last night. I guess we'll see what happens from here.

 

[Big T]

@Big T - congratulations!

If you can believe this, I got a call yesterday from person helping Bank of America process PPP submissions, and she had some additional information about what we could submit that wasn't on any of the original information provided by BofA.

Got me largely squared away, and I uploaded some docs last night. I guess we'll see what happens from here.

Similar to my experiences of yesterday: I received an additional form, requesting dollar amounts to be spent in certain categories, such as payroll, interest on loans, utilities, etc. I had not received hat form previuosly.

Wishing you luck, and to any others on "Ask Andy", please be aware that approximately 1/3 of the funds allocated for this program, still do not have applications encumbering them. In other words, for a little bit of work, here is a big reward waiting!

 

[Oldsarge]

Of course for those of us who 'put by' as advised over our earning lifetimes, the paycheck protection program doesn't apply. I'm so far over the qualification limit it's almost embarrassing.

 

[Mr. B. Scott Robinson]

I would be curious to hear people’s thoughts on this.

It seems to me, that in many cases, the PPP will be the equivalent of throwing an anchor to a drowning man. It is fine and good to cover payroll, but how many small businesses can recover from losing an entire quarter of revenue? Even in the most rosy of recovery scenarios, it will take at least a year to recover from this loss, not taking into account the additional burden of loan repayments for the PPP.

Hopefully, the follow up economic packages will address this concern.

I just started a small online retail side business, but luckily, I had not ramped up to where I have any significant investment at risk and can wait out the recovery.

Cheers,

BSR

 

[eagle2250]

I would be curious to hear people's thoughts on this.

It seems to me, that in many cases, the PPP will be the equivalent of throwing an anchor to a drowning man. It is fine and good to cover payroll, but how many small businesses can recover from losing an entire quarter of revenue? Even in the most rosy of recovery scenarios, it will take at least a year to recover from this loss, not taking into account the additional burden of loan repayments for the PPP.

Hopefully, the follow up economic packages will address this concern.

I just started a small online retail side business, but luckily, I had not ramped up to where I have any significant investment at risk and can wait out the recovery.

Cheers,

BSR

I am very much in agreement with the points you make in the post above and would only add that the potential for a successful outcome is most affected by the nature of the business in question. I think small businesses in the service sector have the steepest and highest obstacles to success to overcome this crisis.

They don't usually have the cash reserves to weather the storm and their labor costs are a constant and/or a growing expense. Many of such operations are simply going to wither and blow away for the foreseeable future. It will be a long recovery. Sorry...I'm not normally a gloom and doomer!

 

[Mr. B. Scott Robinson]

I am very much in agreement with the points you make in the post above and would only add that the potential for a successful outcome is most affected by the nature of the business in question. I think small businesses in the service sector have the steepest and highest obstacles to success to overcome this crisis. They don't usually have the cash reserves to weather the storm and their labor costs are a constant and/or a growing expense. Many of such operations are simply going to wither and blow away for the foreseeable future. It will be a long recovery. Sorry...I'm not normally a gloom and doomer!

Agree non your assessment.

A retail establishment has the option of lowering price to increase revenue to help paper the gap. Most retailers appear to be doing this already with 30% discounts appearing to be the current sweet spot.

A service business, particularly a sole proprietor business, like a massage therapist, can't operate under the above model. And there is only so many massages one can give,
or heads of hair one can cut, or nails one can paint, or pools one can clean, or charter fishing trips one can schedule when things open back up. And these are all things that people will need to lose their fear of exposure (maybe not fishing and pool cleaning !) before they return to normal levels of service demand.

I am very pessimistic for a quick recovery. My companies current data on late loan payments does not paint a rosy picture.

Cheers,

BSR

 

[Mr Thorvald]

I applied for PPP on Saturday for my dentist friend with Chase by logging into her Chase business online account. Used a photo of page 1 of Form 1120 as backup document to upload, used salary line and benefits lines on 1120, added them together, multiplied by 2-1/2, and filled in the rest of the info.

Got confirmation email application was received, but so far no response on funding. The dentist was already a business checking customer of Chase, so some of the info was pre-filled. All told it took about 4 hours, including researching instructions. There is supposed to be another loan program too, but Chase has no mention of it on their website.

 

[Big T]

I own a manufacturing plant, supplying in excess of 75% of our products for new vehicles. I am currently at about 25% of my workforce.

I received approval of my application this past Tuesday, though I haven't seen the paperwork, let alone the funds (I believe the bank that you apply through, is a significant factor in the logistics of PPP administration).

There is another program proposed for PPP, and there are other programs in the works for business in general, that in other times, would not need to go through the SBA, but because of the virus and resulting furloughs, a business that was very loan worthy 12 months ago, now is in a risk category.

My opinion of the PPP? There is a bit of latitude in how you use the funds, with that latitude depending upon what percentage of loan forgiveness you seek. The program itself, was exemplary in a government program being so simple.

When all is said and done, with virus, I would like to see other government agencies model simplification of their services, along the lines of how this program was administered. Further, even if I have to pay 100% of my allocated funds back, it was simply great to have this program available, with approvals so quick.

Even though the PPP funds may be allocated, if anyone here has not made application, you should do so, as there is a high probability that second funding amount will be available.

 

[iam.mike]

If I understand the business-related stimulus options correctly, they are PPP & EIDL.

I applied for EIDL immediately, but have not heard back yet. When I applied, very limited information was available. I was left with the impression that EIDL was simply a $10k grant (forgivable) for a business.

Now I believe they have *clarified* the offering, stating a business can receive $1k per employee, for a maximum of $10k. I believe there are other extensions to EIDL, but the above is the one most have been referring to.

Here is an email I received from the SBA:

=======================================

Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL).

The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted.

To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

	Paycheck Protection Program	Full EIDL Loan
PURPOSE​	Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)​	To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)​
TERMS​	Up to $10 million 1% interest rate​	Up to $2 million 3.75% for businesses 2.75% for non-profits​
FORGIVABLE​	YES​	NO - EIDL Loan YES - EIDL Advance​
MATURITY​	2 years​	30 years​
FIRST PAYMENT DUE​	Deferred 6 months​	Deferred 1 year​

To locate a Paycheck Protection Program Lender, please visit: .
Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA's resource partners.

=======================================

As noted above, PPP is the other.

As I understand it, there is phase 1 (which began on 4/3), and there is a phase 2 currently in the works. I originally filed for PPP on 4/4 when Bank of America opened it up to our business account.

Unless I'm mistaken, all of the PPP funds slated during phase 1 have been allocated already, though only a portion of the funds have been distributed.

I've heard some rumblings (and as noted in the above table) regarding how phase 1 PPP funds can be allocated, leaving the large portion needing to go to employees/staff.

On the surface, that seems like a good thing. However, if a business can only allocate a certain percentage of PPP funding to non-employee expenses, it will be just as easy for the business to go out of business.

As such, even if the PPP stimulus money does not prevent a business from closing entirely, at the very least they will be in a position to pay people their salaries for a couple months.

I've not seen any details directly, other that what's shown above, and what I've heard from different information sources, so I could be wrong.

 

[Oldsarge]

So much for a business friendly administration . . .