My world: Everyone at the software companies are working remotely. The chocolate factory shut down yesterday due to not be considered an essential business. The chocolate elve had already left due to health concerns. I handle all the commercial rentals myself so no impact:
I don't intend to lay-off anybody...if this stretches into June or July...then we may look at cutting salaries by 25 to 50%. With the $1,200 everyone is getting already from the gov, and the 4 month unemployment (+$600/week additional), if we have to do layoffs, then the Team will not be totally without funds.
Originally Posted by Mr. Plow:
Talking some friends at the beginning of all this, that's what we came up with. No mortgage payments for 2-3 months. Tack them on to the end of the note. Gives me money in my pocket to pay everything else, plus in the end they are getting their money.
I'm sure it's not as simple to do as that sounds and I'm sure there are reasons it's not being done that way that I know nothing about.
I'd be calling my bank (and will be early next week) and asking for a plan to mitigate payments in some fashion for 3 - 6 months....maybe smaller payments or interest only, with a plan for how to repay the amounts after things open back up (say over 6 - 8 month). There is a moratorium on foreclosures (albeit that doesn't stop people reporting bad credit / missed payments), but I'd guess you'd have a fighting chance of being able to work things out with the banks. I'm guessing that the average person takes the "moratorium" as "I don't have to pay", which is not the case at all. You should be talking with your banks, and if you have other debt like credit cards, car loans, etc. I'd do exactly the same thing.
Banks / institutions aren't going to offer it up, you have to be the aggressor and have a plan to lay out, and put it in their hands. Even if the banks ultimately doesn't play ball, you took a shot....and at the end of the day, you may actually be able to defer some payments significantly even if you don't totally abate them [Reply]
Also, for small business owners: Lots of Health Care companies are abating premium payments for 30 - 60 days....call your brokers and ask for abatement of payments for short term.... [Reply]
Many will cash in chips and go out till this is over only to resurface after and go back to being successful...those who had a ton of debt wont find it any fun at all. [Reply]
Originally Posted by F150:
Many will cash in chips and go out till this is over only to resurface after and go back to being successful...those who had a ton of debt wont find it any fun at all.
Totally agreed with this.....in regards to business, the best way to weather this storm was to have a strong balance sheet prior to. Most of the business owners I'm talking to now are lucky to have 3 - 4 weeks of sustainability and are ridden with debt. Hate to be the bearer of bad news, but adding more debt on top of this isn't going to solve those problems unfortunately... [Reply]
OK...a little clarification on CARES in regards to the SBA EIDL. It appears that there are multiple "phases" to the SBA relief. Phase two is the EIDL, Phase three (at least in regards to small businesses) is the Small Business Interruption Loans. Phase II and III are different programs all together, but participating in Phase II MAY make the borrower ineligible for Phase III.
I'm getting this from a bank document outlining the provisions. I'm going to vet this further, and if I can get a good link, I'll post this.... [Reply]
Originally Posted by Mr. Plow:
For anyone interested, I called my banker a little while ago. Talked for a bit, and he sent me this from a meeting he was at yesterday.
Yes...this is consistent with what I have seen.....
I have a .pdf document, but not sure how to attach it..... [Reply]
Originally Posted by mililo4cpa:
Totally agreed with this.....in regards to business, the best way to weather this storm was to have a strong balance sheet prior to. Most of the business owners I'm talking to now are lucky to have 3 - 4 weeks of sustainability and are ridden with debt. Hate to be the bearer of bad news, but adding more debt on top of this isn't going to solve those problems unfortunately...
this came at a terrible time for me, my past 18 months have sucked. car accident fucked up a hand forever, then cut tendons in the same fucking hand in july, then had a nurse fuck us over real good. was just getting everything close to being in order and now this.
what really sucks is that the insurance company has gone totally silent regarding the settlement we were negotiating otherwise i'd have absolutely nothing to worry about...
but you know what? it'll all work out. it always has. [Reply]
Thanks for yours as well. Any info on this is good stuff.
....the .pdf I attached references Congress.gov, but I've yet to seen any summary like the .pdf. I'd assume UBS put that together, but then I'd guess they'd put a legal disclaimer in it as well, which they don't....
I also still think that there are lots of details remaining to hash, and I'd bet 2 months before money starts flowing.... [Reply]
Originally Posted by mililo4cpa:
Thanks for yours as well. Any info on this is good stuff.
....the .pdf I attached references Congress.gov, but I've yet to seen any summary like the .pdf. I'd assume UBS put that together, but then I'd guess they'd put a legal disclaimer in it as well, which they don't....
I also still think that there are lots of details remaining to hash, and I'd bet 2 months before money starts flowing....
That's my feeling as well. More info the better. Us small businesses need to stick together to make it through this. [Reply]
Originally Posted by mililo4cpa:
Thanks for yours as well. Any info on this is good stuff.
....the .pdf I attached references Congress.gov, but I've yet to seen any summary like the .pdf. I'd assume UBS put that together, but then I'd guess they'd put a legal disclaimer in it as well, which they don't....
I also still think that there are lots of details remaining to hash, and I'd bet 2 months before money starts flowing....
im willing to bet you're probably closer on the timeline than mnuchen... he said you should be able to go to your bank end of next week or first of the next and get money same day:-) [Reply]
