Small biz owners may face ‘chaos’ in applying for $350B in federal loans

WRAL Tech Wire ^ | 4/2/20 | WRAL Tech Wire

[right way right]

I just cut my 84 yrs old MIL off from watching the news.
She was freaking out today.
I had to explain that she is being exploited by the media.

She is always home bound anyway with her family taking care of her... she is WITH US!
There is no better place she can be, and she is lucky.

[Maris Crane]

I’m seeing how hysterical grown people are behaving.
WTH would they be doing if they had to face what President Trump has to face every day.

Where the hell are the John Waynes and Clint Eastwoods and Al Pachinos...guys with guts.

Bankers are notorious wimps, for Heaven’s sake, man up and try to act like adults.

This kind of wimpification really steams me.

[upsdriver]

Yeah, I tried for that 350B. I got nothing but chaos! Calling my congressman!

[cp124]

We filled out the form yesterday and had to submit it through the drive up window. Cant go in the banks and can’t call them. There is a new thing called the internet. Why they didn’t have the process online us beyond me. Instead we had poorly designed PDF forms and no way to submit to a person. I don’t even know if our bank is involved in this boondoggle. It may be time to close the business and practice society distancing. The government has made it so difficult and costly to be in business it is not worth the headache. The left hates small business and are happy about 50% going out.

[Almondjoy]

So you want even slower processing times? Not to mention your premise of the bailouts is completely wrong.

[Svartalfiar]

Hmm. Per the SBA, Small businesses are over $6T worth of the economy. Depending on business type, payroll alone can be 15-50% of revenue. 30% is a good round number. So small business have about $2T in payroll costs, and this free cash bailout is only going to cover less than 20% of small business payroll? And that doesn't even include rent/other expenses it's allowed to be used for! Considering all the mini-tyrants have shut down just about everything, I see this money drying up pretty quick, and what happens then? Pelosi gets her second, bigger bailout?

From the link:
Nominal small business GDP measured $5.9 trillion in 2014, the most recent year for which small business GDP data are available.

[icclearly]

Your post is 100% correct! I deal with small businesses as executive director of a trade group. I spent almost two hours on a webinar today with one of the top finance law firms in the country and representatives from DC.

There are many more questions (and confusion) than there are answers. A bank may take your application but don’t expect any quick turn-around and be prepared for many questions. Think of the process like an IRS financial audit! The banks do not know the answers, yet.

[Freedom'sWorthIt]

Hope it works out for you.

[Freedom'sWorthIt]

Good question and I surely don’t know the answer.

[Gene Eric]

Yeah, all the funds were diverted to The Kennedy Center.

[Drago]

Am all for smaller community/regional/state-chartered banks & CU’s jumping in to help the beleaguered small businesses who desperately need the help IF they aren’t forced to take a loss on the loan origination paperwork processing/website development. Now that the treasury responded to them with a doubling of the “interest rate” (essentially is “govt. paid” with loan forgiveness at the end) to 1% from 0.5% smaller banks/CU’s can jump in w/o taking a hit. A great thing.

As for 2008, I should not have brought it up, don’t want to take this thread off-topic now. Save for another thread/day.