35 Burst results for "SBA"
Hector Barreto - Entrepreneurship and Immigrants
"Welcomed or guest today, Hector Baretto Hector form headed up the United States. Small Business Administration today. He's the chairman of the Latino Coalition. Thanks for waking up early with us. Do this actor thank you in our Co host Laura Collins, once again. Welcome back, Laura. She's the director in the Bush. Institute smu Economic Growth Initiative thank you. Thank Santa I. Only wake up early for this I know we. To Peel back the curtain we're here at about seven thirty in the morning in Dallas and Lauren I were comparing notes and turns out that one of us are morning. People so hector. We're looking. We're looking at you. Demand on. West Coast time. It's like five thirty in your body clock Oh. That's rough. Hector's here for our SME Economic Growth Advisory Council where he is one of them. Is that help guide the policy work that we do at the Bush Institute, because both of his expertise is the forty first administrator, the small business, and because his work with the Latino Coalition. Let's start with the former when you were with the small business administration. What was the goal of that department? What were you? You, all working on the small business. Administration was actually started in one, thousand, nine, hundred, fifty, three by President Eisenhower and there were some small business programs before that, but they unified those all into one agency, and it's really the agency that supports and advocates for America's small businesses, and that role has become even more important over the years when they formed the SBA. There probably weren't thinking that was going to be over thirty million small businesses in the united. United States and I like to say nothing small about small business. They really are the engine of America, the engine that fuels the economy of America not only are there a lot of them, but they represent over fifty two percent of the gross output of the economy. It's the place that two-thirds the net new jobs of our economy comes from, and it's also the place that a lot of our innovation comes from. That makes us the envy of the world. World in terms of our economy so very very important agency. A lot of people have heard of it, but they oftentimes don't know everything it does. Where does your passion for Small Business? Come from a well? That's easy. I was fortunate to be born into an entrepreneurial family, so the first business owners I ever met where my mother and father and my father was especially a serial entrepreneur. He loved business. He loves starting businesses. I'm not saying he loved running. My mother ran the business ideas, man yeah, but I learned a lot about a small business I used to joke that everything I learned about business. I learned in a Mexican restaurant because that's why I worked when I was a little kid. What jobs is you? Hold with your parents Oh, a lot of them, you know we were an immigrant family and. There was five children. My mother had five children six years. I have four younger sisters, and so we were all recruited to my father's executive training program very early on, so we all had to work I remember waiting tables when I was nine years old. So And then I. as I got older, I got more responsibility and help run some of those businesses and start some of those businesses, and my father had a number of different businesses. We started off with the restaurant business, because that's an easy business to access, but then later on at a little import export business, a little construction business, none of those businesses wherever really large, but they were very important to our family helps support us. They helped educate, and we learned a lot about being in business and working with the community and customers, and so your father came to America start these businesses. He actually didn't. My father was an immigrant to the United States in the late nineteen fifties. I don't think he was planning on staying that long. But he met my mother. My mother is also from immigrant parents from Mexico they've shown love, and and of all places they started their journey in Kansas City Missouri that's where I was born. I grew up in Kansas City Missouri and my father. He had a lot of different jobs as a lot of immigrants do when they first get here. His first jobs were picking. Picking potatoes for fifty cents an hour in rural Missouri and later on, he worked at a railroad, a literally pounding the spikes into the ground, but in the winter it got too cold, so he moved into He started working in the livestock business, and it was very difficult. dirty work. He was cleaning out stalls, but at least it was warmer than being outside. When he was working at the railroad later on he, he was a janitor at the school that I would eventually go to, but my father used to always say that he was a business owner, and I would say dad. You have these jobs. You're not a business owners. They know what I have to do right now, but eventually alone my own business, so he was very passionate about that. He always wanted to work for himself, so he starts so then he starts these businesses and his career trajectory starts trending too so far up that start happening. Yeah, my father was a very visionary leader very. Very charismatic you know he when he's grown up used to say know. I came here with nothing I didn't know anybody. I didn't speak the language. I had no money I had no power, but I believed in myself I was willing to work hard, and this is such a great country that affords us the opportunity to go as far as we WANNA go. We're only limited by our own imagination our own commitment, so he he's. We started these businesses, but later on my father was kind of an organizer as well, and he wanted to belong to the Chamber of Commerce. This is in Kansas City. Number of others spanning businesses. There were there at the time, and my father started asking. Where's the Hispanic Chamber? And they said well. There isn't an Hispanic Chamber. My Dad said well there should be, and if nobody else is going to start it, I will so my father was one of the founders of the Kansas City Hispanic Chamber of Commerce, that was in the mid seventies,
Texas, California top SBA's PPP approvals
"California and Texas, receiving a big chunk of government loans for small businesses hurt by the Corona virus pandemic, the Treasury Department said about $68 billion went Cos. In California under the Paycheck protection program and 41,000,000,002 businesses in Texas. Tourism dollars
Banks Under Fire for Alleged Unequal Lending Practices
"The practice of red lining were denying financial and other services to people based on race, was outlawed in nineteen, sixty eight, but last week several Chicago Chase Bank branches closed temporarily as protesters call for racial equity and lending from the nation's largest bank and expose published in early June by nonprofit newsroom city bureau and WBZ radio found that off the seven and a half billion dollars in Chicago home. Purchase loans approved since two thousand, twelve, less than two percent was loaned in black majority neighborhoods. The bank is also the subject of a Federal Class Action Lawsuit. That suit alleges that chase shutout. Business. Borrowers from the paycheck protection, program or PCP. Stacey Hawkins Armstrong's the founder of shop. poppin gourmet. Popcorn in Westchester. She told news station ABC seven Chicago the. She tried to file her PP loan application with chase. On the first day. They were accepted, but she got nothing but error messages desperate to keep her doors open and her four employees on payroll. She ultimately secured a smaller loan through a different bank. She believes that chase prioritized. It's favored customers and left small businesses like hers in. In the cold, She's not alone the US. House of Representatives is launching probes into how several banks including J. P.. Morgan Chase Bank of America and Citigroup made P P P loans according to the Orange County Register. Critics allege that big banks service business customers and Shutout underserved borrowers from the funding pool. redlining continues in subtle ways today, including in how P P P loans. Loans were distributed according to Everett. Sand CEO of small business lender lend Distri in a report in fortune as business wars daily reported earlier this month. The Small Business Administration gave no guidance to lenders to prioritize underserved communities about ninety percent of black owned businesses have no employees ease sands, says P, P P rules. Regarding sole proprietors came out last that let these entrepreneurs unclear about. About which loans were available to them? The SBA hasn't released the demographics of WHO received PPP loans, but a survey report by color of change and UNIDOs US is revealing more than half of black and Latin next small business owners who sought assistance requested less than twenty thousand dollars in funding only about one in ten received the funding. They ask for according to the report. One united the nation's largest blackout bank has been working to help black owned businesses get better access to loans in the second round of stimulus funding, federal government allowed thirty billion dollars to smaller and minority owned banks such as community development, financial institutions were CDFI's one united secured some of that funding with that on April. Twenty nine, the bank launched its own P. Program. The bank committed to lending to black owned businesses and self-employed people. It's I. P P Loan, went to an uber driver. Time will tell who was more effective in getting money to black owned businesses, but the stakes couldn't be higher. A recent report by the Brookings Institution Warns Covid. Nineteen could wipe out a decade of economic gains by black owned businesses as Congress debates whether create another stimulus round. The future of many black owned businesses hangs in the balance.
"sba" Discussed on The big d zone
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Minority-Owned Small Businesses Aren't Getting Stimulus Loans
"This week we begin with new research showing that many black and Latino owned businesses are struggling to get financial help and almost two thirds say they were denied Colbert nineteen stimulus loans CBS at o'keefe with the latest this was conducted by needles U. S. and the color of change to civil rights organizations focused on the concerns of the black and Latino communities in this country and they basically found that just twelve percent of African American and Latino business owners received the federal assistance they applied for and just thirty eight percent receive any assistance at all if you set that against small businesses nationwide so much smaller percentage of those overall that are getting some form of assistance and one of the conclusions from the study is that the small businesses which in many cases are mom and pop you know companies started on a whim in a dream many of them in the food service industries others and things like you know like hair salons of moving companies are essentially started by people who don't have a formal relationship with the bank or a banker I who could help them out with these kind of situations a lot of the small business owners responded to across the country last week since this federal assistance program began and said look you know you don't have the time now and the relationships with bankers lawyers and accountants and if you don't you're spending a huge percentage of time worried about this kind of stuff instead of the actual distance so what the study is asking for centuries for banks to work on this for the small business administration to make clear who exactly is getting this ain't not only geographically but also demographically and you know just try to call some awareness of the fact that there arsenal disparities Natalie who's getting separate but it works well with the banking industry I'm gonna come back to the banking industry in just a second but you told the story of a woman who owned a trucking company that it asked for forty two thousand and was apparently told she was going to get it and then got seventy five hundred instead yeah and you know we we tried to figure out with her work what is up there he wasn't clear by the time our story Randy could be that this was just the first part of the payment could be that that's all she's getting and it's unclear and that's and that's the point but so much of this is confusing and so much of it is not clearly explain to those that are applying and receiving a and so it's frustrating and and it speaks to the fact that you know this is a program that didn't exist about two and a half months ago was just a concept maybe I'm late after chance it's something like a global pandemic happened so perhaps you have to give them a little time and space to sort it out but at the same time most companies would say look we're desperate we want to be able to re open we want to be able to pay our employees we want to be able to figure out if we're gonna be able to afford on our own table and if you make it this complicated is it really worth it and he really work and you also talked talked talked to a black owned here and make a business in Atlanta who was denied money completely and isn't the whole point of this money supposed to be to help the struggling small businesses if they meet the requirements and so you know it if you were to dive into the details of a lot of these applications it may be that they were consistently meeting the rules it's unclear why she was rejected and I think part of it is she said I don't have relationships with the bank I don't know somebody I can call to help me out with this and to help me go through the fine print so this was somebody doing it on a whim on their own they may have missed something and then I realize that they don't necessarily apply her from another small business owner who said that that you know that essentially if you can't prove that you actually were or making money last year and we're losing money if you might not be eligible and you know that for a lot of small businesses you know they're they're going into the red they may be barely breaking even and so if you're not doing that you may have to get this money there was also some question about whether the SBA had offered enough information for lenders to find and identify the small businesses who needed the help exactly exactly there's been very concerned about this whole program overall is it practical does it make sense is this something that that is reaching the people that really need it CBS at o'keefe the N. double ACP the African American research collaborative and Gail school of medicine have released a poll on blacks in the cold at nineteen pandemic in double ACP president and CEO Derrick Johnson tells us eighty percent want to continue the shutdowns public health officials are saying that it is too soon to reopen it the economy particularly when so many in our community are being impacted by the virus we have a a disproportionate number of individuals who are dying as a result of the virus and we are concerned as the community about our health more so than others concern about the cat I was also interested to see that most African Americans thank you they are less likely than whites to be offered testing and treatment break that down for me a little bit but consistent with the historical act a gap in access to health care there is a high level of distrust and the public health system or by asking Americans it is no secret that there is a long standing public policy that has created a gap in access the seven governors particularly are refused to expand the affordable Care Act which would have covered more people and many of our communities lack the infrastructure the health infrastructure to ensure a healthy environment there has always existed a gap and as a result we are sitting in the midst of this pandemic where there is a disproportionate number of African Americans being impacted not because they are predisposed or there's some type of lifestyle choice that is creating the disproportion alley it is because of all of the social B. chart determinants and the underlying issues it's interesting that you said it's not about lifestyle changes because I have seen a lot of chatter on social media in which people of color felt that they were being blamed for this pandemic in many ways it is unfortunate that that narrative continued to bubble up our policy makers and politicians often times six excuse me our way of their lack of interest is or sound policy judgment when it comes to areas where that impact African Americans I stand it is eight other factors when in fact much of this could have been prevented the reason why we in the midst of a pandemic is because of bad decisions by this administration and particularly of the president in the White House a bunch of the gap in access to healthcare is resolve of systemic public policy most recently not expanded affordable Care Act but historically not ensuring that all students are provided with affordable and quality
Planned Parenthood Improperly Claimed $80 Million in Coronavirus-Relief Loans
"Morning which organizations should get money from the federal government's coronavirus relief programs like many Planned Parenthood chapters around this country received funds from the paycheck protection program several Republican senators now want Planned Parenthood to return the money NPR national correspondent Jeremy cameras on the story Sarah good morning good morning Steve what did the Planned Parenthood chapters receive exactly so what we're talking about is the federal loan program under what's known as the cares act the one meant to keep small business workers on the payroll during this crisis so small businesses and small nonprofits with fewer than five hundred employees can apply for forgivable loans and it's important to note that while Planned Parenthood federation of America is a big national organization the national groups as they did not apply for these funds instead it's the local Planned Parenthood organizations that operate clinics around the country that received the money I talked with Stephanie frame the president and CEO of Planned Parenthood of southwest and central Florida she says they got a little over two million dollars mostly to cover employee paychecks economic uncertainty at that moment was profound and the two weeks while we waited for this loan we spent having some very tough conversations about what we do we didn't get a strong so it's not clear how much Planned Parenthood or its affiliated groups have applied for or received nation wide fox news has reported and some Republican senators have repeated a figure of eighty million dollars combined nationally but the small business administration which administrates these loans would only say that the agency doesn't comment on individual borrowers okay but in any case the money was loaned to these Planned Parenthood chapters loans that they may not have to pay back if they keep people on the payroll like a lot of other businesses and non profits but this particular nonprofit does work that some Republican lawmakers are ideologically opposed to what they say right a Florida senator Marco Rubio who's chairman of the Senate small business committee says that Planned Parenthood isn't eligible for these funds under the program's rules he wants the money returned immediately he wants the SBA the small business administration to investigate why and how Planned Parenthood got the money and I talked with Republican senator James Lankford of Oklahoma who's also objected to this he also wants Planned Parenthood to send the money back that's what the Los Angeles Lakers are done that's what check check is done that's where risk Chris is done so other organizations arms exposed that they should not taken the money have returned the money so that would be the reasonable thing for them to be able to beat and Lankford says because Planned Parenthood affiliates nationwide have many more than five hundred employees combined they don't qualify so Steve there's some dispute about how to interpret these rules but let's not forget there is a big political element to this I mean currently it is illegal in most cases for federal funds to pay for abortion but there is a long standing political debate about any federal funds going to Planned Parenthood because of what it has come to represent about the national debate around abortion and of course Planned Parenthood has argued they do a whole lot more than that perform abortions how is Planned Parenthood responding to the specific criticism here well they say they haven't received word from the SBA small business administration about this they only know what Republican senators are saying and what's been reported by fox which says that the SBA has sent a letter to Planned Parenthood affiliates informing them that they're not eligible for this money and instructing them to return it but again SBA isn't commenting on this are you able to figure out what the rules actually say and how they actually apply to this particular organization it's hard to say for sure Steve I talked to a few lawyers about this and I'm hearing that there is just a lot of confusion Republican senators insists Planned Parenthood doesn't qualify under the rules Planned Parenthood says each local affiliate looked at the program decided whether to apply for this paycheck support but a lot of lawyers say the rules are unclear and they've been
"sba" Discussed on WTMJ 620
"Want to give you the latest guidance information from the SBA you know from very early on when Congress passed what is now called the PPP the payroll protection program we have been deluged with questions from business owners and then those questions last week basically stopped and it turns out the question stopped at the same time the people completely I lost interest in the program stopped applying for it there's a huge amount of PPP money still available from the second allocation passed by Congress and why did people stop participating because they got scared because there were various things coming out of Washington that made it seem like you were going to go to prison if you didn't bet every single word of either the law or more importantly the regulations that have changed over and over and over and over again issued like a bunch of keystone cops coming out of Washington from the treasury department and the SBA this man hard because Iraq receives don't normally move this quickly and they're very deliberate in this case the idea was to get money out as quickly as possible and so it led to chaos and what people went through applying what people went through with the documentation requirements with your application kept changing and then once people got approved a lot of people became afraid to spend the money to save their businesses because of all the publicity coming out about how you could end up as a felon well because of that there's brand new guidance which is the latest guidance it says that pretty much you're in safe harbor the amount of money you borrow from the PPP is under two million dollars and that accounts for particularly with the second sequence of fines overwhelmingly people have taken out loans in the range of eighty to two hundred thousand dollars kind of in that range virtually no one of late has been doing the loans that have been in excess of two million dollars overwhelmingly those were there problems that occurred if the big banks where they helped publicly traded companies and big entities cheat the rules and push through loans that the program was not designed for and I don't understand why no one that these big banks is in trouble but anyway that's a topic for a different time so what you should know as a small business owner who needs the fines it is okay for you to proceed with the PPP you're not going to be cited for fraud and unless you're committing actual fraud there was some guy who apparently took the loan money and went out and bought fancy jewelry that's not what this is for this is for you being able to meet payroll and expenses for your business so if you're doing a loan less than two million it is self certification that you qualify for the loan program under the idea that you could not continue to have the necessary cash flow for your business otherwise essentially I can give you the exact wording but it's not important because all you have to do is good faith certification which is to I packed all read this sentence of it economic uncertainty makes is a loan request necessary to support the ongoing operations of the applicant period on the other hand businesses with more than two million dollars in loans are where there's going to have to be much more than self certification they're going to have to prove that there were no other sources of financing about publicly traded companies they can go to the bond market they can do various debt instruments thank you very S. stock issuances and they probably have access to bank loans it is saw this is free money for a publicly traded company that's why.
Unforgivable? Restaurants fear loans won't bring relief
"Desk restaurant owners across the country worried about the government's coronavirus relief loans won't live up to their promise of forgiveness rules written by the SBA require companies to use their loan money within a specific time period and for specific purposes but many restaurants that are still unable to reopen or who's revenue has fallen sharply due to social distancing can't meet the requirements and that could force many of them to have to repay part of the loans within two
Changes to Relief Program Trip Up Small Businesses Seeking Loans
"There's a big question looming over the paycheck protection program that the federal government set up that aid money is not reaching business owners of color why not and here's Danielle Kurtzleben looked into it the first time Rosemary Bolger applied for the small business relief loans it didn't go well she needed a loan for naco creative her small Minneapolis based company which has created ad campaigns for brands like the NCAA final four so she went to her credit union they were hard to reach but eventually I got through to someone and they emailed me back saying the current process for them because they don't process SBA loan I wasn't aware of that then after trying and failing it to other banks she managed to find one that was accepting applications for new customers and she quickly applied but then next week I got an email from them saying you know the money is running out and then now it's just going to prioritize their clients that had borrowed before the budget has applied there again during the second round of funding but hasn't heard back yet but she could use the money and fast her team is currently working through the pandemic without pay we will have a healthy pipeline coming into this year as soon as this came down everything went on hold and then disappear lawmakers set aside thirty billion dollars for smaller lenders with an aim of helping business owners of color like Bhoja but a new report from the small business administration's inspector general found that minority owned businesses may not have received loans as intended because the agency didn't tell lenders to prioritize those borrowers the carers act ten rules specifically laying this out the report also recommended that the agency collects demographic information going forward an additional problem for these owners is that they are more likely to be sole proprietors in other words their businesses are owned by one person according to Ashley Harrington senior policy counsel at the center for responsible lending what we're talking about getting rid of color most of them are very small businesses so their sole proprietorship or they have less than ten employees who are likely to be a sole proprietorship than any of the other small businesses the budget has six people on her team and they're all contractors making her business one of those one person's sole proprietorships some of those were only allowed to apply for PPP funds one week after other businesses that put them in the back of the line to get the money which ran out quickly during the first round in addition relationships with banks matter according to Michael Roth he's managing partner at next street which works with local governments on small business policy black and Hispanic owned businesses because of their lack of access to capital and banks and financial institutions and friends and family are far more likely to use personal funds to finance their businesses and generally that's run out of you know personal checking accounts that could be a problem for some businesses in the program because some banks would only loan to people with business accounts so owners without those were shut out boy just says that if she doesn't get the funding it won't take her business down completely but it could make life harder the main thing that we're on the verge of losing in their office space but yeah we will go out of business but it's it's already hurt the contractors who rely on her for income one of my team members and taken a job with Amazon for example but but we're still pushing to get business in for now she says they're working on a new project to make sure health information about corona virus can reach poor and immigrant communities as well as communities of color Danielle Kurtzleben NPR
Minority-Owned Small Businesses Were Supposed To Get Priority. They May Not Have
"There's a big question looming over the paycheck protection program. The Gut the federal government set up that aid. Money is not reaching business owners of color Wi- NPR's Daniel Kurtzer looked into it. The first time Rosemary Borja applied for the small business relief loans. It didn't go well. She needed a loan for Neko Creative Minneapolis based which has created ad campaigns for brands like the NCAA final four. So she went to her. Credit Union should reach. But eventually I got through to someone and they emailed me back saying they can't process them because they don't process. Sba Loan I wasn't aware of that. Then after trying and failing it to other banks she managed to find one that was accepting applications from new customers and she quickly applied but the next week. I I got an email from them saying you know. The money's running out and then now just going to prioritize their clients that had boroughs before the Bulla has applied there again during the second round of funding but hasn't heard back yet but she could use the money and fast. Her team is currently working through the pandemic without pay we have a healthy pipeline coming into this year. As soon as this came Dow- everything went on hold and then disappear. Lawmakers set aside thirty billion dollars for smaller lenders with an aim of helping business owners of color like Boba but a new report from the small business. Administration's Inspector General found that minority owned businesses may not have received loans as intended because the agency didn't tell lenders to prioritize those borrowers. The cares act had rules specifically laying this out the report also recommended that the agency collects demographic information going forward. An additional problem for these owners is that they are more likely to be sole proprietors in other words. Their businesses are owned by one person. According to Ashleigh Harrington Senior Policy Counsel at the Center for responsible lending we're talking about businesses of color. Most of them are very small businesses so their sole proprietorship or they have left teams. Leave in fact more likely to be a sole proprietorship in any of the other. Small businesses budget has six people on her team. And they're all contractors making her business one of one person sole proprietorships. Some of those were only allowed to apply for P. P. Funds one week after other businesses that put them in the back of the line to get the money which ran out quickly during the first round in addition relationships with banks matter according to Michael Roth. He's managing partner at next street which works with local governments on small business policy. Black and Hispanic owned businesses because of their lack of access to capital from banks and financial institutions and friends and family are far more likely to use personal funds to finance their businesses. And generally. That's run out of you know personal checking accounts that could be a problem for some businesses in the program because some banks would only loan to people with business accounts so owners without those. Were shut out. The boy says that if she doesn't get the funding it won't take her business down completely but it could make life harder. The main thing that we're on the verge of losing is our office space. Yeah we won't go out of business but it's already hurt the contractors who rely on her for income one of my team members and taken a job with Amazon for example but but with still pushing to get business in for now. She says they're working on a new project to make sure health information about corona virus can reach poor and immigrant communities as well as communities of Color
"sba" Discussed on C-SPAN Radio
"SBA the small business administration that began this week again rejected so more in there been some snafus in terms of getting the money out I hope that will get straightened out but that is supposed to provide the SBA's program is host provide cash the smallest businesses on favorable terms and in fact those loans are at least partially forgivable if the companies to small companies maintain their payroll now the fed is hoping there as well it announced I think yesterday or yesterday that it will by SBA loans from banks or provide a secondary market for those loans making them more liquid making banks more willing to make those loans so I guess everything is nice here is that the fed but the fed can do is reinforce the the the private credit markets with a private credit markets are dysfunctional because of D. leveraging because of uncertainty that the fed can come in and replace those markets to some extent or strangles markets and then try to bring private lenders back into those markets this is not give away money it it the thirteen three requirements to do require that the fed take collateral that it intended be repaid but in order to get defensive protection a big chunk of the money in the fiscal program for her sixty five billion dollars essentially provides equity for the feds lending programs so that if they do lose money it'll be covered by by this by these treasury funds so again there has been progress already we have seen the credit markets improve I think the critical issue will be how quickly the the help public health situation improves and that will determine will depend on the logistics of distributing equipment and gear adds dental laters as well as the scientific effort that we are that we really need to get control of this finally let me just point out that we talk about the United States this is a difficult situation because it is a global situation almost every country in the world is suffering from this I pandemic and almost all have chosen to significantly reduce economic activity so this will be a global recession yeah the situation is being questioned by a strong dollar by falling commodity prices by capital flow outflows from those countries so we may well see emerging market crises and and global recession as well as in the United States so is we have a hard road ahead but I I I I am I pretty pleased overall with the fiscal or monetary responses we've seen that we're gonna need more but at least those of artistes have done what they can to help our economy stay functional until the public health situation gets better David I'll stop there and be happy to answer any questions members hosted by Brookings Institution in early April C. span radio right thank you very much for that van and listening and now we have a number of questions already but feel free to add to the list by emailing events at Brooking dot EDU or on Twitter at has taken over it nineteen academy David Wessel Brookings Institution this event took place early April as you mentioned Ben the fed has aggressively increased its balance sheet it's now approaching six trillion dollars it'll be twice the size it was when you left the fed twenty fourteen is there a limit to how much money the fed can create or reserves that can create to purchase US treasuries on land for all these emergency facilities is there is there some limit to how much the treasury can borrow to finance this rescue there's not a real it technically is not really a limit to how big the fed's balance sheet can get that that six trillion this would be it would be about thirty percent or less of US GDP in Japan I don't know the exact number but in the order of eighty or ninety percent of GDP is the size of the bank of Japan's balance sheet so it could be it could be bigger much of the of the increase is temporary for example a lot of the take the commercial paper facility for example those are short term loans usually as things normalise those loans will be paid back in the fed's balance sheet will accordingly shrink but you know I think the the fed does have capacity to increase its balance sheet and it it appears willing to do so significantly huh and I think that's appropriate I don't think there's any real data I don't think for example that inflation is going to be a risk if anything this inflation low inflation will be more of a concern and next year than than to high inflation that's Harling is concerned yes the the federal government's borrowing a lot again as I mentioned this is when that borrowing capacity is so valuable when you have a national emergency which of course this is paying for this with taxes would would be counterproductive just because it would depress buying power at a time when the economy needs needs buying power I think it's it's the the question of sustainability of the US federal debt is a tough one I think there are long range issues clearly as the population ages as cost of medical care go up you know we see projections of the federal debt that are very disturbing over the next decade or two and we need to think hard about how we're going to get control of trajectory but I think that in the near term dealing with a crisis of this magnitude that I think this is an important approach and I would just note finally that interest rates being almost zero means that the interest burden associated with this borrowing is actually going to be quite low even though the number of dollars borrowed is this high I want to back up to the inflation point because some people look at what's going on huge increase in the federal deficit low interest rates the fed creating a lot of reserves and they think surely this will create inflation maybe more than once you don't seem to think that's the case how come well if you look at it they are supplying demand elements of this crisis you know on the supply side you're seeing for example some things some types of goods are in short supply you're seeing some supply chains being disrupted so there are some slight facts that you know will be there for good service overall though you know think about what's happening to the demand for leisure industries think about what's happening to the demand for airline seats out what were or restaurant meals the because people staying home and because it'll be a while before they are back to our normal activity and because when they do come back to more normal activity they will have exhausted some of their financial reserves generally I think spending is going to take a hit so the net effect will be probably slightly disinflationary that's what Jay Powell said at his press conference I think he's right when we did when we see that it's just look at what's happening commodity prices oil prices for example which have collapsed so I I you know I think overall that monetary fiscal similis will not more were not sufficiently compensate to get us back to full employment and the rest will be that in the short term that's inflation will actually be a bit below the fed's two percent target the fed would like to back two percent or even a slightly above so I think at this point inflation is is not a high risk doesn't sound like you're anticipating a sharp V. shaped recovery it depends on I. dot the reason I'm not is because of the apparent trajectory of the of the virus and Raisman faction and the like it they tell us of course I'm not a doctor by any means but a test that I have seen it is eighteen months away there are things we can do to open up the economy significantly perhaps but I I don't see the economy returning to more normal state until there is much greater confidence both among the average person and among average people and at the level of governors and mayors that opening up the economy won't restart difficult to crisis so it seems likely that the if we if we could shut off the epidemic of course the economy would bounce back quickly but since we'll probably have to shut we start activity the gradually and there may be subsequent periods of of slower at activity again I I don't think it's going to be a rapid response on the other hand I do want to draw the distinction between this and say a twelve year Great Depression if all goes well here too we should be substantially better position I hope that the time back to full employment will be significantly less even than the Great Recession proved to be what residents in question the recovery from the Great Recession was sluggish and painfully slow are there lessons there that we should draw about either fiscal or monetary policy responses I think I'm the margin I think both his monetary policy could more aggressive at certain stages in their recovery but it was a very different kind of recession it was it was started it was created primarily by the combination of a housing boom and bust into finance and and those things and the first instance as asset prices fell house prices fell made people feel poor and then the credit crisis meant that there was tremendous disruption in credit markets as well and so we think about it is that a recession is not just everyone stopping for a moment what they're doing and then going back to it rather recession involves a whole lot of destruction people losing jobs being created from their employers companies closing and depending on the house how long do you consider that destruction is the longer it takes to get back to more normal and more normal situation I recall you saying when you were at the fed that you thought fiscal policy had tightened too soon to prepare it and that's the question hurt the recovery and I guess I was wondering whether you think that's a risk again this time well act as I said a moment ago I I think the policy what was not sufficiently aggressive and I think at times monetary policy in a more aggressive the the the the initial two thousand and nine fiscal program in retrospect and and some people said at the time was perhaps not adequately size given the size of the problem and then there was a fairly quick response not just the United States but globally towards a more more deficit reduction in tighter fiscal policy starting as early as twenty ten and United States are very significant tightening in twenty thirteen so yes the fiscal policy was that too tight at various stages that to fully aid the recovery back to full employment in this case you know I think the politics is a little different you know the two thousand and nine the fiscal package was passed you know it was basically on party line vote this this one we just had was a more bipartisan supported by the by the president in both parties so I'm hopeful that you know with a more bipartisan approach to what is again a some level really unnatural disaster I mean it it is a very big but it's in some ways similar to the hurricanes are the flaws of the other things that we've dealt with in recent years and a bipartisan response to support those.
Small business emergency lending program expands fintechs portfolios
"The paycheck protection program is a weekend to its second round of hopefully funding small businesses through the corona virus outbreak. Some financial tech companies also known as Syntax got permission from Congress to offer those loans. They include pay pal into it cabbage and others. The hope is that they can get loans to people and businesses who haven't worked with traditional banks in the past and the Fintech say they're tack is also an advantage but so is that true. Let's dig into it and quality assurance the segment where we take a second look at Big Tech Story Felix. Salmon is chief financial correspondent for the tech site axios. The banks were a bit slow to be able to set up websites that customers found it impossible to get to a to a human being or to find out where they stood whether their applications were going through and there was a general feeling that given that all of this was being done on the Internet the Internet companies might be better doing it than the banks were so relatively quickly. This program was opened up so that the eligible lenders included not only banks but also Internet companies Lake Pay Pal and quicken and square. Gotcha I mean. I feel like one of the questions about these lenders. And FINTECH companies and neo banks in particular is that in some ways they serve. Replace this idea of the Community Bank. Like do we have any evidence that they are or could be more inclusive than established lenders. I think they are in the if you applied for P. P. Loan from pay pal. Then your chances of guessing it. We're probably the same no matter who you were given that many of the people applying if not most of the businesses applying had no particular relationship with these Fintech to begin with now doesn't mean they're going to get that loans. It's far from clear that the ability of pay pal to get loans through the SBA system and get people. Funded is any greater than any other bank. But at least you can feel that you're on a level playing field if that's any. Solis which you probably isn't to be honest. Who is applying through? Let's say pay pal or square or into it. Who are these small businesses to a first Brooks mission? Everyone who didn't get a loan or wasn't able to get through when applying through that bank. Whatever the reason was if you haven't got your money it's not give up on your bank entirely but you say well. Maybe I can't get a loan through my bank. I should try a getting along with someone else and given the it's not difficult to apply through pay pal. Oh quicken intuit it. You May as well try if they come back to you and say hey you've been funded. Brin and you can take the money and if they don't it's no harm no foul and is there any evidence or will there ever be a way to tell you think whether they claim that these kind of like tech driven platforms are more nimble and better able to get your application through than a big bank the banks and the Fintech have all been extremely unhelpful? When people like you and me have been asking them for details about how many people try to apply. How many of those people who try to apply actually got their money those ratios on not public information than the information that the SBA has see you need to get that information directly from each one. And I don't think any of them are going to be releasing that data on the kind of apples to apples basis that we'll be able to make that determination. Is this an opportunity for these companies like if they are able to establish themselves as this type of lender or just do good by some small businesses is an opportunity for them to build a customer base down the road I think for about twenty four rows an opportunity to get some goodwill? I think the small business owners actually went to those places putting their applications and then didn't receive any money that some of that goodwill did evaporate. What's more of these companies? Aunt actually lenders at heart companies like paypal and square a much more based on payments on loans. And so. It's not clear that even if this did give them a foot in the door when it came to small business lending that something that they would really want to be right and it feels like certainly some of them have provided loans like cabbage are into it but the others haven't to think they're likely to discover that in fact. This is a terrible morass that they would like to back out of slowly. Small business loans were horrible thing to be in in general because small businesses so many things can go wrong is so difficult to really get under the hood and find out how credit worthy they are for. P. It's different because it's all guaranteed by the government so you don't need to spend too much time really underwriting the loan and understanding the business before extending the credit but if you want to actually lend money to small businesses as part of your business especially if you're doing unsecured and you're not you don't have access to cash flows which you can just S- ts to pay back the loan. Then yeah it's really Nali business where lots of lenders have become unstuck. And it's not clear that very many investors want these companies to get into that line of
Smallest businesses get a few hours at head of relief loan line
"The small business administration saying it's moving the smallest companies seeking coronavirus relief loans to the head of the line for eight hours ending at midnight eastern time the SBA will accept loans only from the small lenders the administration taking action after hearing complaints from the nation's smallest businesses about the difficulty of competing with big national
Big banks temporarily shut out of small business loan portal, Treasury and SBA announce
"There's a temporary lock out in a popular relief program the small business administration says beginning this afternoon the paycheck protection program those small business loans aimed at saving jobs will be temporarily closed to big banks it's an effort to give fair access to the country's smallest lenders and their customers after reports of problems since the funding was replenished and restarted this
Loopholes In Small Business Relief Program Allowed Thriving Companies To Cash In
"Here is the harsh math of the paycheck protection program. Hundreds of billions of dollars in USA government loans are not nearly enough for every small business in need so in one company gets alone. It that others may not. That's why it matters that accompany received millions at the very moment that it's business was booming. Npr An investigative correspondent Cheryl W Thompson reports. If there's one sector of the economy that's in high demand right now. It's medical testing earlier this month. Long island-based Kim Bio Diagnostics was one of the first companies to get emergency. Fda approval for blood tests to detect covert nineteen antibodies and says board member and former interim CEO Gil page. They're looking to grow and order. I the ramp and as the things we need to do to increase Armenia factoring capabilities. You know we felt like having the supplemental a dollar amount or law is very helpful in helping. Us employs people alone. She's referring to the SBA paycheck protection. Program Kim biometrics diagnostic tests for all kinds of infectious diseases. They worked on HIV EBOLA ZEKA and others. Fda approval of companies fingerprint cove in nineteen tests created a huge opportunity. Their stock price averaged about five dollars a share over the last year and yesterday it closed at about eleven dollars the paycheck protection loan would give them the liquidity to help them grow. They applied for and got nearly three million dollars. When you get these pandemics and there's all of a sudden this big rush and you need to be able to supply the problem is. That's not what the paycheck protection program is designed to do. The goal here isn't to expand the size of companies. The goal here is to kind of keep them alive while we get through this crisis. Margot D- wine is the senior policy director for the Committee for Responsible Federal Budget in Washington. Dc He says the program is for companies that are struggling losing customers laying off employees on the brink of shutting down companies. Have to self certify that they need this money because they are experiencing adverse effects if they are not experiencing adverse effects. It's probably inappropriate. Gilpin says it was totally proper for Kim Bio which has gotten government grants over the years to work on diagnostic testing to take the paycheck protection. Money when you have a crisis locked it a lot of the customer base that you dependent upon your revenue Kinda slip. Serve here to the side so another. I stay viable and we felt like we needed to participate in stock. Price doesn't represent necessarily cash in the bank. One issue with the first round of disbursements. Was that the law was murky. Florida Republican senator. Rick Scott expressed concern last week. The company's not heard by the pandemic found loopholes and got millions of dollars and remember even though they're giving us loans. Most of the money will be forgiven by the government. As long as it's used appropriately earlier this week officials began issuing a second round of loans. Three hundred and eleven billion dollars. The question is whether mistakes will be repeated. Go Wind says in fact in this next round of funds it looks like the SBA. We'll be doing some more oversight Treasury Secretary. Steve MNUCHIN has tow companies that received money but may not have qualified that they have a grace period to return it the SBA told NPR. That two billion dollars has been declined to return so far that money will now be available in the current application process. Geico page the board member at Kim Bio says the company hasn't decided whether to return the nearly three million dollar loan it
Round two of the “Paycheck Protection Program”: Another disaster for US small businesses and their employees
"For the second day in a row there was a log jam at the small business administration for banks trying to submit applications for thousands of small businesses seeking corona virus relief loans banking industry groups say the SBA's loan processing system is still unable to handle the volume of loan applications from business owners trying to get aid under the paycheck protection program part of the government's two trillion dollar coronavirus aid program the S. P. A. has said the slowdown is due to its attempts to limit the amount of loans that anyone bank can submit at one time but some banks say they're not able to get any applicants into the
"sba" Discussed on The Dave Ramsey Show
"Then it turned into this script would get rejected in Hollywood as not plausible. That when we this is like shark NATO or something I mean it's not gonNA ask NATO who thought of this and actually got this on film. That's what happened if you filmed it. I would have failed freshmen in highschool for writing this down as their short story. Maybe and that's not gonNA happen Come on man. Get your plot straightened out here. You gotta you gotTa make it believable for the reader or you lose them. I don't even know what to say anymore I. This is a strange world where I found myself speechless. Well you can't make this crap is warm the SBA is four hours with billions of dollars an hour going out. This is like this is like shutting down the water main to La for for four hours and nobody can get water for four hours in Los Angeles or New York City. That's what it would be like. I mean can you. This is not all. They were really swamped. We had some minor problems glit- minor glitches on Monday. And then you make a sign up sheet for billions and you don't think I I just I don't know man. I tell no well those of you that have not gotten your loans where you have been clearly recommending that you don't because there is the word loan in this process and Dave Ramsey team and has never recommended you go into debt and You have to meet the federal guidelines which are always kind of interesting. Have you ever tried to read the tax code meet the federal guidelines in order to have the loan forgiven it is not a grant it is alone with forgiveness provisions that you will have to meet exact? The government is well known for having a rush to bill through and then make up the rags on the back end. The suit their new mood on the back end. I worked with too many students at several universities who decided I'm going to be social worker. I'm going to go into public defense instead of chasing big money law. 'cause my heart is big and and I'm going to check it decade. They're gonNA forgive it right and then they didn't all gone. Yeah I remember that story loans. That were not going to be. I mean they were going to be forgiven. That weren't I remember. The story that changed changed remind in year nine. I mean up. Change your mind given up a decade of you're earning power To public services take a lesser job in public service up. Well we gave up now. We just took on our loan. They want a big deal on turned into allow. Who knows like all it alone but later out we found later on we found out it was alone. You folks. I'm telling you this what's going to be known as being bit but both cheeks some of you're GonNa get there so you're gonNA get. The rottweiler clamped down. I'm just telling you it's coming. Some of you will get the forgiveness. It'll work out. I'm not saying it's a hundred percent scam. I'm just saying you guys are acting like this is nothing you'd be a fool not to take the in quotes air quotes everybody free money and then the SBA. I'm telling you the COMP the organization you're dealing with can't keep their computers running. Does that mean anything to you. I mean you know when you see lack of competence. Lack of integrity was someone. You're doing business with expect to have a lack of competence integrity in the future. I mean why would you expect something else but we always we always have this Illusion this fantasy this time. It's going for me just for me. They're going up. You know it's going to be a short line at the DMV today just for me thirty minutes. I'M GONNA get straight through there just like that. I know it's backed up out the door but they're going.
"sba" Discussed on Bloomberg Radio New York
"SBA administrator crowns and thank you you have been such a champion for America's small business if you'd also like to come up and join us and and Larry Kudlow thank you for for all that you do in fighting for for American workers with that I would like to kick us off by introducing Amy right to come up to the stage and share with us a little bit as her story she has created an amazing business that that stems from personal experience and and very much her her heart and it's been an honor getting to know you Amy as you really embody the spirit of of small businesses around this country Amy because of the PPP program was able to re hire behind all right so you've been listening to the president giving an update on some of the aid to help out small businesses and individuals and of course I've aka trump they're talking as well and going through some of her involvement so you notice will continue to hear the certainly the president continue to draw on it groups from the private sector and from industries and talking about you know the impact of some of those programs and also what still needs to be done right and we will keep an eye on that event down there in Washington at the White House its presence starts taking questions will take you back there and continue to monitor anything that he and the team are saying I mean this is an issue that we've been talking a huge amount about it is front of mind for so many people because of the importance of small businesses Carol to this country we see them in our neighborhoods we have family and friends who own and work at small businesses here and they are hurting you know the you heard the president mentioned that double the number of people who are accessing the system before access did yesterday right I I feel like he was saying that in in sort of a boastful way but the reality is that's not great but in the sense that it it means that a lot of people need money I mean they need essentially some help surviving this terrible terrible pandemic yeah exactly it's interesting to hear the president say that small business they will be in good shape and I think there's a lot of questions still about them because these are businesses that don't necessarily have a big safety net and show whether or not they will be able to still continue to open an exist on the other side of that I think there's a lot of questions and you know a lot of people being able to access the program also is a reminder of those who could maybe access at on the initial round of it and so people are pretty desperate I mean I've been watching a lot of the news coverage I know you have to look at people you know who individuals as well as small businesses that they run out of money nothing right well and and the notion is is that if you run out of money it's it's unlikely that you're going to be able to restart just right off the bat you know you're letting employees go you're having to shut down there's the whole question of you know our landlords going to give people a little bit more leeway and for how long they ultimately have to pay their bills as well that whole supply chain that we talked about with Kent swig last week in terms it was last week earlier this is last week it was nothing but and also what's the liability right of of if you do get a break on paying mortgages or rents or what have you but you still have to you know pay for it on the other side and you can transferring yeah and you can come back to business environment economic environment or maybe your customer base is cut in half you know and so you're not gonna see the same cash flow and revenue flow that you saw right so I just think it's really tricky and I hope we continue to spend a lot of time I know we you and I both find is a really important issue at this point and we're gonna continue talking about it but I do hope it's getting the attention of certainly all the lawmakers that are in there in Washington really and and and also in the hardest hit states absolutely all right let's get a check on what's happening in the trading day and in.
Mnuchin: 'Full review' by SBA of PPP loans over $2 million before forgiveness
"Coronavirus update with a number of big companies including the Los Angeles Lakers saying they're returning small business loans to the government the treasury secretary Steve Mnuchin tells CNBC all large loans will be reviewed for anyone over two million dollars the SBA will be doing a full review of that loan before there is a loan forgiveness so we will make sure that what was the intent for taxpayers is
Second day of issues with small business loans
"The small business relief loan program is running into another day of problems banking industry groups say the small business administration's loan processing system is still unable to handle the sheer volume of applications business owners have been trying to get relief under the government's paycheck protection program both to keep workers on the payroll and pay overhead costs the SBA says the process is moving slowly because it's trying to limit the number of loans a bank can submit at one time but some banks say they're not able to get any applications in sadr mag ani Washington
"sba" Discussed on AP News
"Banking industry groups say the small business administration's loan processing system is still unable to handle the sheer volume of applications business owners have been trying to get relief under the government's paycheck protection program both to keep workers on the payroll and pay overhead costs the SBA says the process is moving slowly because it's trying to limit the number of loans a bank can submit at one time but some banks say they're not able to get any applications in sadr mag ani Washington
Second day of issues with small business loans
"Banking industry groups say the small business administration's loan processing system is still unable to handle the sheer volume of applications business owners have been trying to get relief under the government's paycheck protection program both to keep workers on the payroll and pay overhead costs the SBA says the process is moving slowly because it's trying to limit the number of loans a bank can submit at one time but some banks say they're not able to get any applications in sadr mag ani Washington
Lakers return $4.6 million from stimulus loan program
"The Los Angeles Lakers become the latest company to repair coronavirus business relief alone this one for roughly four point six million dollars after learning the program had been depleted the NBA team said to be one of the most valuable receive the loan under the small business administration's paycheck protection program the Lakers qualified because they only have about three hundred employees but now say they want the money to go to a business most in need shake shack and auto nation also return their loans but others have kept the money the SBA revised its rules last week for who qualifies the new guidelines require companies to certify with their lender that they need the loan and cannot access the money from other sources I'm Julie Walker
"sba" Discussed on NewsRadio 1080 KRLD
"Going to small business but if you go to a big bank to get a loan to get your SBA loan it's been a nightmare the horror stories are plentiful and as Jim is back with us tonight right now in the consumer team to talk about a better way to go to welcome back there is a better way to get this done to get money for small business and tell us about it right now if you would ever have to calls and emails that I've been receiving over the last few weeks since we've done this show our issues related to existing banks further signing not bank won't my credit union Roger I'm not banking well not to keep you take my bank has said that I'm not qualified you may have an even taken any information they're not answering questions they're not being helpful and so they're asking is there anyone else out there I can talk to that knows what they're doing and would be helpful the the reality is that the bank started with the first round of PPP focused on existing customers and while most of them are still focusing on existing customers even with the second round and there are a number of banks that throughout Texas that have started to take new customers and so that is very very encouraging I've got a short list I'll send anyone to just simply send a quick email him at S. P. A. advisors dot com and say I need that list and I'll make sure you get it immediately these are smaller community banks are they are they Texas based banks a couple of more Texas based banks there is a national lender that is a specialist in STA and then interestingly enough one of them it has quickbooks so quickbooks has opened up a program to offer it these loans and that got an online application that's very very simple and god do you think it would be good to contact them but look at the list that I'll soon you see if there's a bank locally that you can develop a good relationship with and that might be a better route to go all right this second round of funding of the loan is about to be available or is available depending on who you talk to but this is going to go pretty quickly to this is three hundred and is at three sixty two three twenty three twenty billion it it seems like monopoly money at this point I just can't even fathom that I can't go there I mean the amount of debt our country's getting into all the details but the reality is you either do this now are we don't have an economy to count this small business will be there but okay SO three hundred twenty billion how long is it gonna last in and what is the urgency for a small business if they haven't gotten into the queue if they haven't signed up yet at S. P. A. dot gov how quickly should they get this done is this an urgent matter it's a very urgent matter because the money ran out within two weeks the first round the second round will probably run out within that same time frame many of the banks are taking applications again compass bank BBVA compass as it's known has an online application that you can go to check back with your existing bank see if they're taking applications again if you have your application in already then you should be good but you might want to just check with the bank can verify that they have everything they need to get your career one other thing that you can talk to our listeners about or give further instruction on to me is the need to be compliant with the rules and rags on the loan so you can actually make it a forgivable loan and and we don't have a lot of time to go into this but basically the cliff notes is if you use it for payroll you could get up to a hundred percent of the loan forgiven but it's got to go to payroll and my summarizing that accurately seventy five percent has to go to pay roll over so if you know your contract your full time ten ninety nine employees seventy five percent and it has to be used within eight weeks of your first disbursement so when the launch of predicting you close within twenty four hours that money's going to be in a bank account for you the entire mail and from that point forward you've got eight weeks to use it or you will get.
"sba" Discussed on KNX 1070 NEWSRADIO
"SBA disaster loan so they'll be another fifty billion dollars appropriated which can do over three hundred billion to disaster loan so these two programs are unprecedented response to small businesses house speaker Nancy Pelosi tells ABC's this week both sides are working together to help Americans who were struggling during the panda everything we've done three bills in March for all bipartisan the central package will be too and the and the businesses will have the money in a timely fashion what else is that a deal could be reached as early as today although timing on a possible vote still unclear you wouldn't think your stimulus check in this pandemic would be in danger of being taken away from you legally but it could happen the issues with debt collectors and banks you owe money to according to Lauren Saunders associate director at the national consumer law center one is if you owe money to the same bank where your bank account is and the bank might take the money if you have a negative balance in your checking account maybe an overdraft fees or maybe you owe money on a student loan or an auto loan second a debt collector other than the bank could have a court judgment against you and they could serve a garnishment order against your bank to freeze your account and asked the bank to turn over the money most bigger banks of announce they will not take your money but debt collectors are not so nice if you have a debt collector coming after you they're just Colleen just ignore the calls but if they serve you with a lawsuit or if they serve a garnishment order on your bank you really need to try to find an attorney she says protections do vary from state to state there are rights under California law but if you can't get out to get an attorney that's a problem check with legal aid or your consumer protection agency has a place to start Bob real cannon said seventy news radio it's two thirty five traffic weather together every ten minutes on the five let's check in with Jeff Biggs and a very good Monday morning to you the freeways are looking good which makes it a good time to remind you not to speed and please drive safe as always there's Caltrans work to kick off your week it's not quite Carmageddon but invent eyes of the four oh five the right three lanes in both directions are closed between Sherman way in Roscoe and then in Culver city both directions of the four oh five you can not get on the westbound ten due to demolition work in east LA both eastbound and westbound sixty connectors to the seven ten or closed it covers both the northbound and southbound five connectors to the seven ten are completely closed as well for more pavement rehabilitation and the southbound seven ten is also closed from the five to Atlantic van Deanie with three lanes blocked off on the northbound side in Burbank the cellphone five connector to the east route one thirty four is closed agora hills the cones are out of the one one south bound between Cayman road and Chesbrough and finally in Santa Ana on the northbound five the carpool lane is closed from First Street to the twenty two freeway with more traffic reports more often hi Jeff Biggs K. next ten seventy newsradio well another cool cloudy day but much warmer temperatures on the way starting tomorrow and lasting through the weekend but for today we'll see cloudy skies and continued cool temperatures highs in the sixties to around seventy degrees Monday night partly cloudy low should be in the low to mid fifties and then Tuesday partly cloudy to begin with then sunny and warmer highs in the mid sixties into the mid seventies and for Wednesday sunny and even warmer highs in the low to mid seventies at the water low to mid eighties inland fifty two right now in Lancaster fifty four degree hills in Pasadena also fifty four degrees at two thirty nine a gunman in Nova Scotia has killed sixteen people apparently targeting them at random it's the deadly shooting in Canadian history one of those killed was a twenty three year police veteran royal Canadian Mounted Police spokesperson Lieberman countless families are in mourning today each person who lost her family and friends and they too will need their support Canadian police say the suspect disguised himself as a police officer in a one point made his car look like a.
BURST+VIDEO+EXPAND- burst 02
"Through nonprofits as well get faces. New Voices added in changes. Thank you use a good thing and we have some articles. We wanted to look at today. Did we just start us off? I one here. It's an editorial. Sorry Senator Holly. It's unconstitutional to bail out. Churches with three hundred and fifty billion dollars in small business aid from American atheists American Atheist Center for Inquiry Freedom From Religion Foundation and secular coalition of America corrected. Senator Josh hollies claim that the The SBA Small Business Administration is wrongly telling churches and lenders that churches and religious nonprofits don't qualify for the new Cova Nineteen Relief
"sba" Discussed on The Dave Gram Show on WDEV
"Is he eligible for any anything Get getting any of this money from the federal government and the idea that he cannot do as business really because he can't interact with people yes he would be eligible as a self employed person For both programs and actually Probably that economic injuries. That may be better that for him Basically they're trying to figure out. What are your operating costs for a year and give you about six months of operating expenses and as an in addition they have this thing called the It's an advance and up to ten thousand dollars Vance but it's really based on how many employees you have. So he's the only previous late forties the employees right so employees would be a thousand dollars that he could get. That doesn't happen to be repaid grandma part of it. So it's worth I'm applying. He can just go to our website. Sba Dot Gov and it's right on the front page corona virus and kind of walks you through the different loan programs and he can apply right online. Pretty it's a pretty basic application online. That would be a thousand dollars that would be that grant portion of it and then if he felt he needed a loan also president. What about unemployment? I'm yeah they can be Eligible and they just looked to make sure there isn't a duplication benefits between programs But yes I believe at self-employed they are included under the cares act for unemployment excellent. Thank you for the call. Vic I gotta move on but thank you for the call. Appreciate it Let's go to Let's go to Dick and Waterbury. Good Morning Dick. Good morning does it. Also apply to seasonal business as such is A GOLF COURSE EMPLOYEES. Yes curses eligible. Okay so you know we have We have just a few employees but with no operation no Greens fees Very few dudes coming in but the grass doesn't stop growing and maintenance doesn't stop so right you'd be eligible for either one of those programs of paycheck protection program or the The paycheck protection program. Again they're looking at what? Your normal employee level is even though you're seasonal you can use a seasonal period for that And they're just trying to say you've got to get back to that level so that would be the thing you would wanna look at. Does that work for you? Yes got the certain number of employees definitely. We need to have back even if we open up. You know June or later they still have to be done so recommend you go to your Credit Union or bank and just you know work with them because like I said they have like their own sort of little template that you fill out and then you can kind of figure out How much Monja would qualify for based on your you know your employees situation and you know. Do you like the terms. Is that GONNA work you? Yeah all right perfect. Thank you thanks. Thanks for the call. Appreciate it Two four four one seven seven seven is the local number in Waterbury one. Eight seven seven to nine one eight two five five is the toll free number for wd Ev and The Dave grab show year And and Darcy Carter is my guest. She is heading up the SBA Small Business Administration Office in Vermont and based Mafia or is that right Darcy. Yes that's right but we're we're teleworking teleworking. Yes you like everybody else I been doing this radio. Show from from my home here in my period as well and it's unusual times for sure this is This is something that everybody's trying to make these adjustments here And do you have I'm just wondering if SBA is hearing from any Any more sort of standard clients out there. People you've been dealing with over a period of time about About changes in in in our are. Are you doing any sort of loan pauses true? There's a technical term for that but We're we're folks are being told you don't have to make payments for a few months or anything like that. Yes right They've helped the debt relief. program so if you can currently have an FDA loan FDA IS GONNA pay six months of your principal and interest Going forward so that was the regular called seven as loan program five. Oh four or a micro loan. Any of those loans They'll pay the next six months of payment and many of the banks and credit cards have already been authorizing deferments on their own so this is going to add a soon. We'll be added on to that. So if you have a three months affirming already. The six months of payments would probably start after that three months to firmness over. And also if you have a disaster loan from SBA from Irene And we do have many homeowners that got those those loans are going to be deferred until December of this year. Okay the those will not be won't be a matter of espionage picking up the payments. It'll be payments deferred. How does she? We'll interest on those continue to accrue or will I be put on pause to or how does that work I think interest is still occurring on with it. Okay but there's no penalty for saying over a period of months of you know if I'm a homeowner and I lost my job income or whatever I can't I can't afford to be repaying. My Irene disaster loan right now I can basically put that on pause and not have to worry about it for for what is it. Three months Through the end of the year And I think that it's automatic looking on my sheet. We can find it I think it's just GonNa Happen. Automatically with the student loans Though you know the hours getting noticed that they're going to have the interest rate dropped. And then there's there's like a deferral periods as well so these things are going to happen without you having to make them happen. That's my understanding or I see. Okay so that's you know another another another thing to worry about for folks which is always helpful because of a lot of people are worrying about. Lots of things is they. Try to figure out. Especially if you've lost work lost income right now you're trying to figure out. What can I defer? And what what? What is absolutely necessary to pay and etc. So I think that's that's valuable and folks are able to go on the SBA website and find out these things work. What's the best dot Gov and it's right on the front page? It'LL SAY CORONA VIRUS. You just click on that and it can elicit off everything There is a tax credit also available for businesses employee retention tax credit and. I'm not the authority on that because again it's Kind of a distance division That does you know tax credits for businesses that that that could be an benefit that might work better for some businesses than the P P P loan It has different parameters that you know. Hopefully we'll be helpful out there Did want to mention the Agency of Commerce from my agency Commerce in community development. They have a great website. That has all the resources on there for Anything related to businesses. And the you know assistance available So I would have. People check that out again. The Agency of Commerce and Community Development They have a lot on there and they keep it very up to date. that's That is a good tip as well so plenty of information out there for folks to help in a what about calls to your office those encouraged or get do any of them. Yes we can't check of your idea loan however we have access so we get a lot of those calls probably understand the frustration of not hearing back on but yes people can call our office number it. Oh two eight two eight four four two two two actually forwarded somebody and also they can email me. Dr C. Dot Carter FDA dot. How's your email inbox looking these days? It's crazy we have six of us so we we spread the joy It's been a pleasure working with businesses. I have to say you know. They're very inspiring even in the face of so much adversity You know they've been extremely Articulate about their situation looking for the right kind of help and you know just wanting to open their doors again and get going you know. Yeah that's all that's That's good to hear A. I suspect that that is the general. The general mood out there. I'd be chomping at the bit myself. If I had any kind of you know small business alive I was operating just to I mean it's become such a part of people's lives and and sort of censor themselves and so on and so forth. You know the I hear people say it's what I do. You know how I roll. Or whatever and all of a sudden to have that role come to a screeching halt has got to be very disconcerting for people and not just financially. But you know sort of I don't know emotionally and spiritually and all that stuff as well. So that's that's a very tough. Yeah I'm for folks out there and you know that people know that you know that they are important in their community and now they're really frustrated and people have different ways of expressing their and it's okay we don't we don't care how you express that you can call us and say these things are not working for me. You know I need. How like we're getting those calls and we're happy to get him so we just encourage people to to reach out to us to the state on there are business advisors through. Spa that are at no cost. You don't have to get alone you don't have to apply for it We can set you up with with an adviser and You can work with them on any of your business issues and Whether alone makes sense or not just the whole the stick kind of figuring out what to do next and how to plan ahead. Well that's good. That's good to know as well. I'm sure that that's a that's got to be a busy phone line as well. These days that you guys are out street Darcy Carter of the Small Business Administration Office here. In Montpellier I really Thank you for joining me this morning. Great talking with you. It sounds like you folks are offering lots of good services it's SBA DOT GOV and folks WanNa go online and look y'all up and figure out what's available that's great so thank you so much. He thinks that machine and we are fast approaching the top of the hour. Here which means the end of this edition of the day. Graham show here stay tuned. We're going to have a regular broadcast of bill. Sayers show commonsense radio following.
"sba" Discussed on Pro Business Channel
"To your point. The sponge might be full at this moment for the details. Matter what I would say. Is You know you can talk about generic terms in generically. What can happen. What what what should people expect? But you know you might have people going for the exact same franchise in the exact same location and it's going to be different for each one of them so it is definitely a conversation and is definitely something where you know be open and transparent and work with your lending partner work with the franchise or in a way to get to. Yes as I said before is just you know. What does that look like? And so from a very consultative nature. It's a process and it's very individualized so we work with general guidelines to make every individual scenario pan out to the best possible. So there's always more questions after multiple calls together with clients. I know it exactly. I you know I always ended the same way. Which is I know the moment we hang up. It's okay you can have questions email me reach out to me let me know what the Czar You know and go down that path so as an entrepreneur. You're out there and you're you're not gonNA have all the information on day one. Just keep asking great questions and keep the vision and direction and keep that drive towards entrepreneurship going It'll happen well sad. You obviously come to us from Atlantic. I want you to share a little bit with our listeners. About Your Organization Your Bank. I'll keep it brief but Atlantic capital bank We are Atlanta's Atlanta's Largest public rated bank. That's headquartered here in Atlanta so We are Atlanta's hometown business bank. We are a commercial bank We have various niche Wines business that we do. And we do commercial franchise owned we do. Sba FRANCHISE WE SBA across the entire country So you know what you do here on radio show and the clients. You work with Very much in line with the vision and mission of where. We're trying to go as a bank as well to support the growth of franchise orders and franchisees across the entire country. So so yes as a lender then you're not just working with those that are in Atlanta You could work with someone from my hometown. Cincinnati Ohio absolutely. We've got lenders across the country And we work with franchise stores across the entire country. And it's it's been an honor to be part of this organization helping fuel entrepreneurship across the country Thank you so much for all of the great insight and information around. Sba lending pleasure and it's been great to have you have any on the on the show With that being said we're going to go ahead and wrap up the franchise business radio show. I WANNA thank Not only Thomas but also our listeners. For Tuning in In addition that I always like to thank our sponsors Franchise intellect a knowledgeable advisors for Franchise Selection. Just go to. Www FRANCHISE INTELLECT DOT COM. Feel free to contact me directly. If you're considering franchise business ownership I can easily be reached at Pam at franchise intellect dot Com. That's PAM at franchise intellect DOT COM. In addition my business partner franchise DOT CITY. A Better Way to buy franchise does some excellent educational of videos on our Youtube Channel. Please check it out. Franchise Dot city and this show is also made possible by France. Serve the world's largest franchise consulting and expansion organization so thanks to everybody and again franchise business rated show a emission. It's a platform to bring together. Business professionals to connect educate and collaborate to serve the franchise community and those considering franchise business ownership. Thanks for tuning in. Thank you again for joining Pamela Korean. Her guests for the Franchise Business Radio. Show sponsored by franchise intellect knowledge the franchise community for franchise selection more INFO at franchise intellect dot com also made possible in part by Franchise Dodge city a better way to buy a franchise more INFO at franchise dot city and France serve the world's largest franchise consulting and expansion organization more INFO at France Dot Com. Use the social media links here to share today show and check out more episodes at franchise business radio DOT COM..
"sba" Discussed on Pro Business Channel
"It's a cash flow situation for the business owner themselves and so We're GONNA continue down this sinner snare that we have just have a real world example All right so we. We've done that. I've got my franchise agreement signed. I've done one hundred thousand dollar cash injection for my four hundred thousand dollar project loan. Now I need to go find a site well and I would say. Site selection is going to be a part of the initial process. You might have dropped the funds into the bank account. You might have executed your franchise agreement so in this case you've got fifty thousand dollars left to inject but definitely go find a site as a lender right. I'M GONNA be underwriting in using the location of your new business as a key component to my determination of your are we in agreement that this is going to be successful. Okay so yeah and just for our listeners. So there is a. There's a sequence that needs to occur an order of events Those funds aren't released until you actually have that site. Yeah I would say in. Nobody's going to be closing alone without a location right. So if you've got a new retail concept where that's going is critical right. The traffic count the head. Count The foot. You know all of that. It's going to matter. And so you know you can enjoy you can say. I'm committed to this franchise I'm GONNA execute my franchise agreement. I'm going to pay those ones. That's as as a new business center. That's your call but the lender is GonNa WanNa know that you are You've got at least we know what the term lease are. There's a lot of an SBA regulation about that lease and so that's something to work closely with once you find a site location and you start going down the path of negotiating your lease There's GonNa be in terms in you're lender GONNA WANNA work with you to make sure that at least is going to be eligible in the collateral. That's going to go into their For the SBA loan that. There's an agreement that landlord understands this is going to be secure with an SBA loan and the lender may need to go get that Claudio. There's a lot of those moving parts but assuming you have your location you've got everything ready to go You know once you've injected those funds and for example. We paid the fifty thousand dollars in our scenario. You find a location likes it. You might you know. Pay a deposit for the right to. There's a ten thousand dollar. Check your math easy here to sixty you know you're gonNA have some closing costs right. That can also be part of your capital injection. There might be initial deposit on equipment or inventory. You need to make your contractor to build out the space they might need a deposit upfront right. So those are all things I would say. In the in the normal scope of getting your franchise location up running. Yes that are going to happen. That will probably yup into that cash injection that we're talking about cash injection requirement. And the reason we want a time this is when the when the funds the SBA funds are actually released to the individual There are a couple of additional reforms. Not only do they need. To have a franchise agreement signed. They need have that site selection of plays and then the build out occurs. And when we see it's a team effort it really is so I just WANNA give peace of mind to anyone who's considering a franchise. This is not something you're out there doing on your on this is why people go franchising. Because the Franchisor has expertise in this area. They have commercial real estate side. Now you've got the lender on your site and you're really working together as a team to have things grass and move forward in the right order absolutely. Yes that site selection your franchise is GonNa to have signed off on it? They're gonNA have a designed that they're going to want you to execute those are all things you can hand to a contractor and now it's a bit out the contracting to three during companies. Figure out which one you WANNA use just isn't always the best. So you know. The lender will have experienced and prompt borrowers to say. Hey ask about these things. Make sure we have this into the construction contract. You know all of these things right but an experience lender should be able to help also advising guide you through that process most likely loan proceeds are going to be dispersed to the contractor and so there's a specific guidelines that again. Espn AS GONNA WANNA make sure that we have documented a couple of it because we can get a loan proceeds. Basically I I like to keep it simple. Keep THE KISS MODEL. Simple sweet right When you say lone precede so now Going back to our scenario We've the side. I've now hired our contractor. Build out his is his started. And I'm working with you as my lender and you are basically gradually pain that contractor. Which is what you consider the proceeds right correct. Yeah so you what we're GonNa want want document. The loan proceeds was every penny spent on right. Maybe not painting but yeah Monte dollar but yeah I mean so we're GONNA WANNA say okay. Do we have an invoice to backup this dispersion request? So you're GonNa work with your winter. There might be a post closing team that you're working with or might be the actual person who package and closed the loan But you're gonNA work that lender to essentially disperse the three hundred thousand dollars until it's fully dispersed great and so once once you've spent all three hundred thousand dollars the plan from the very beginning is you're up and running and your cash flow positive and let's let's not jump to so you're having the document all of those pennies right. That are going to get to spur. So you'd say Hey. I've got this invoice. I need to pay you. Provide that invoice. The lender then dispersed those funds to pay that invoice. They'll either drop it to your business account there. You can write a check off of or they might check directly to the vendor and get that straight to them but you know contractor great example assuming you have all the documentation to disperse the funds. They'll submit it. Invoice wants Arafat documentations received. Then the lender will either cut a check directly to the contractor to pay that invoice and can proceed forward so now I've I've got my side. I've finished my build out Got My sign up. I'm ready to open my doors. And is that when I have to start paying back my loan. How does that work absolutely? That's a great question so the the moment you close your loan right if you started drawing on the funds. You're going to have a monthly payment. It's important in my opinion. That your lender building an interest only period right through the construction for example. You're not driving any revenue and it's important that essentially have the smallest payment possible. So you know build in that that construction interest for example. You're seeing so you have dollars that accounted to make those payments through the construction period until you're actually pass the break even so yeah I I would say typical terms or you're going to start paying on the SBA loan on any principle balance. That's dispersed one to two months after you close your own and that'll continue for the term of the loan. Okay so I'm at a I'm just going to recap that because they think there's value in in this. I've got my loan and the recommendation. If you can is is to with specially a retail location as. That's our scenario that were working with you. Try TO GET. Let's just say it's a ten year term by loan. I WanNa get the first twelve months interest. just pain on interest to keep my payments low until. I really start seeing my business make money. That's the Goal Ryan. Sure so in our scenario if we look at it and we say okay we're GONNA do a three month build out and then it's GonNa take another six to nine months to get up to that break even point. So you're gonNA need six to nine months of operations to to to become worse rankled cash flow positive or essentially have enough net income to pay the loan and have money left over then. Yeah you'd want a twelve month interest only period so enough time to get your doors open and then enough time as well to to get to the point where you can cover the loan payment on a full principal and interest basis. That's the period of time that should really be interest only and just Just be clear because sometimes I think we take The the jargon for granted When we're talking about principal and interest Please explain to our listeners. What a principal is and what an interest is sure so our scenarios you have a foreign thousand dollar project. It's the three hundred thousand dollar loan. So you have three hundred thousand dollars. That is essentially what you're going to have to pay back plus the interest right. So is your draw the loan you know you might disperse the first month. Only one hundred thousand dollars in the second month you might disperse another one hundred thousand and then once you get your doors open. We're going to buy all the inventory. We're going to disperse the working capital over a period of time. Eventually you're going to be a three hundred. Thousand dollar dispersed loan though the print the interest accrued is accrued daily based upon. What is dispersed? Which is why you don't want three hundred thousand dollars. Dropped into your account tomorrow. Wanted Space that out and have that only come to when you need it because you're gonNA be paying interest on that that makes sense so each loan payment is you know interest only in the beginning. That's you're only paying the interest. That's accumulated since the last loan payment. Based upon the average daily balance that's been drawn up or average daily principle. That has been taken out of the loan. Once your businesses able to pay back that three hundred thousand dollars plus the interest in our scenario twelve months of interest on me. You've essentially got one hundred eight months to then pay back the three hundred thousand dollars okay and It does it if I again. I'm the borrower. I'm I'm getting SPA loan. Does it make sense for me shop around? Can I get a lower interest rate from.
"sba" Discussed on WWL
"Coast bank and trust trying to work through the process of these SBA loans folks these are on a first come first serve basis the sooner you get through this process the better off your S. P. A. dot gov or go to your local banker that website you can find out what are the documents that you need to get those collected up start that process sooner rather than later you have some time before you really need to decide whether or not you're going to draw down on these amounts circumstances changes guy Williams just pointed out we don't know when this economy is going to come back so I under the present rules you really want to protect yourself right guy yeah absolutely the biggest thing is to hold on to your cash and think clearly about the relationships that are most important and maintaining yourself in the position that you can restart whenever that restarting isn't as a said Texas is looking at a phased restarting well you don't know if you're gonna be in that first or second phase because we haven't designed to restart program yet for Louisiana right so one of the questions that comes up is when do you start tracking the eight weeks of pay roll that will be forgiven in the P. P. P. is up from the date of closing as soon as you get the money that's when that's when it starts so that's when you need to re hire the people if you if you've laid them off and the good thing is when you start that you can also you also start the clock ticking on when the loan can be forgiven and that's going to be seven weeks from the day of closing the bank can begin assessing the application to the U. S. B. A. in order to have that loan forgiven that's something that the bank is going to handle or the individual borrower be it individual borrowers going to certify to the bank and then the bank actually forgives alone notifies SBA and then gets gets the money back from SBA so it's three three person process the borrower the bank and the SBA and the reason this is important guys at the espy a typically process is what about a thousand applications a year representing about twenty billion in dollars as I recall I thought I read that somewhere a little more than that but this is about three hundred times what they normally process so a significant significant increase I remember you saying that I wrote it down somewhere and I and I knew that there was a it was a big number was a big difference so that's why that first come first serve get it in is very important let's go to Dan online one day and welcome to the show posted in Germany yes yes yes are these programs are great I just want to mention that to get started I'm laid off by my employer yeah why for an appointment with the lower end of the weight scale then on for weeks and unemployment and then my employer secures one of these loans and calls me back to work this is our potential to double dip here how our people are collected say six weeks of unemployment going to be are they allowed to collect eight weeks under this under this reemployment think paid PPP thing or how does that work you as an individual is the worker don't get to double dip you get unemployment while you're unemployed and then once you go back to work that's eight week time period for your employer to get the loan forgiven but you can only get it once you don't get to double up okay so up before five weeks of unemployment that's been collected with the federal bonus I think it's six hundred a week that doesn't that doesn't count against the eight weeks now does not help that in addition to I don't have to pay that back you're entitled to unemployment until you in fact go back and earn money okay so then you still may be you still may be entitled to unemployment depending on what they're gonna ultimately end up paying you okay so you could ride this way for sixteen weeks the way it sounds the woman eight weeks under PDP conceivably but the challenges your time line and your employers are going to be different when the employer gets the PPP loan they have to hire you back then right got it yep yep understand so that's my question thank you very much not a problem this card to the timeline entered off completely and totally outside of their control for sure absolutely yep hi we got to go to another break we'll take the break come back we have guy Williams.
"sba" Discussed on Power 105.1 FM
"What the needs are but then also to make sure that what was proposed as a solution actually solve the problem and so for the last several days there been a number of conference calls that you have served as the convener and the moral voice to make sure that we could finally get where we want to be which was as of yesterday clarity that based institutions could apply through there a small business certified lender and as I said what we call a seven a lender we can find them online just go to SBA dot gov and look up your lender to be able to find an access point to be able to protect your payroll for the next eight weeks and then if you use those dollars to protect your staff those those well they start out as loans are forgiven if those monies are used for the designated purposes and established in the law so it's been a it's been a long road it's been a very diligent role my sister revenue genet is helped in making sure that we kind of kept this communication going on because at times it felt a bit chaotic because we we get misinformation from a number of different portals and now I think we finally have the answer but revenue despite no small block at all that your voice and your willingness to have conversations with folks you don't always agree with to be able to make the call on behalf of the least of these has helped us to get to this point and for that I think we will all be the better because of it movement of churches a daycare programs they're pretty rare and the like those that don't fit because the program also is reaching new print to me it seems this coming week please give the way it is I think this is a three thousand meals in that three out of the mail.
"sba" Discussed on WSB-AM
"And both are off to a very very difficult starts their payroll protection program has a revolt going on from banks the US department of the treasury the SBA did not issue the regulations tell why **** night the regulations the banks are very unhappy with the wording of several parts of the regulations and a number of banks are not going to process loans until they have clarification from the federal government other banks have gone into a crouched position instead when they do make loans are only going to make them to people who had existing relationships with the bank either back in twenty nineteen or earlier or earlier this year that they're not going to allow someone to come in from a business who does not have an account with the bank and do an application for the payroll protection program the problem is the banks calculate that there's just downside for them with the way the regulations were issued by the US treasury that the banks expect they'll lose money on these loans that for the most part can turn into grants for businesses and their the banks unfortunately by their interpretation face liability if somebody to frauds the federal government with an application for this program so what's basically going on as the banks are pushing back trying to get new regulations issued that will give them safe harbor if someone applies for a loner turns out to be a fraud stir the banks also are lobbying for raising the interest rates the interest rate can be as high as four percent I numbered that was stated by the feds was half a percent it's now been raised to one percent today but the banks want it back up to the four percent so we'll see what happens over the weekend in this tug of war between the banks and the trump administration about how the payroll protection program will operate the second thing unemployment compensation the intention of the Congress was to get money into people's hands right away the latest gas on the percent of Americans that are now unemployed is thirteen to fifteen percent so a huge number of people unemployed and state labor departments are very upset with the US department of labor feeling that U. S. department of labor has let them down issuing regulations on how to carry out Congress's intent of the six hundred dollars a week for four months of federal money for people who are unemployed plus the expansion of unemployment benefits to people other than those that would normally help that's the gig workers self employed independent contractors so there's a lot lot more questions than answers yet and at first one thing the federal government is operating much quicker than normal right now they're trying to get these things done the promises made about how quickly money we get into people's hands were unrealistic but by setting these unrealistic deadlines my hope is that next week will bring some clarity on both of these efforts to get money into people's hands the third thing is a complete and total fail on the banks to provide mortgage relief banks are either not following the law or don't know how to follow the law the third stimulus law on how to give mortgage relief which based on the latest estimate I saw seventy percent of mortgage borrowers should be eligible for forbearance on your mortgage loan for an initial six month period followed by an additional potential six months if necessary which I don't think it will be but the thing is the banks in the mortgage loan servicers are not doing what they're supposed to do and the federal government needs to come down hard on them in one of the worst movies I've seen the consumer financial protection bureau instead of protecting consumers is giving banks wide latitude to mass up on reporting to credit bureaus without having to fix that in the normal timely basis required under the original law that established the consumer financial protection bureau and that is in excusable K. I'm I'd like to stop there and go to questions so would you like to start with all right well let's start with Christina today she says that she has a question regarding student loan payments she works for a large nonprofit hospital and she's part of the ten year student loan forgiveness plan she understands that payments will be automatically put into forbearance but she doesn't know if they'll still count towards her student loan forgiveness plan she's said she's doing a great job and she just doesn't want to screw it up well good for you counting down the hundred and twenty months so the minds of the forbearance will cal click away minds of the one twenty so you'll get through September credit is if you've made a payment even though you won't have made a payment and the guidance issued by the U. S. department of education is clear as could be on it you can even go to the department of education website at C. D. dot gov and you can read and print out which I would recommend the wording that they have published it says clearly there's no Hemming and hawing about it these months will count towards your one twenty gel Clark Brian says I'm a contract employee in the medical device sector and I have been impacted by the reduction in elective cases at hospitals I was thinking about forgoing my mortgage payment for a few months I can take care.
"sba" Discussed on NewsRadio 1080 KRLD
"Finds that that sixty days a payroll will be forgiven your rent will be forgiven for those sixty days so that portion of the money you borrow will not have to be paid back there are expenses in originating the slow if you do a what's now being called the paycheck protection program alone you will have to pay typically five percent however the amount of money you borrow in a fee they will typically go to the bank or credit union in addition there are many people who will feel overwhelmed over powered by the process of the application and you can hire a third party SBA loan specialist these are people who make a living just doing applications for businesses the money you pay them is money you will not recoup so the fee you pay to originate the loan you won't recoup typically five percent and the fee you'll pay the somebody to shepherd your application for you that's money that will go out the door you will not get back in addition money you borrow that is in excess of what your payroll cost would be for the sixty days remember you have to restore essentially full payroll for that period of time and for your rack or if you own your own building for your business it can be the mortgage that you paid for that that those expenses are forgiven when properly documented now there are others who are not specifically interested in having vote loan forgiveness aspect of this and just need operating capital for your business you may not have any number of employees or whatever and so your goal is to get money in the house as quickly as you can to operate your business so there's a separate SBA program that if you go.
"sba" Discussed on Defenders of Business Value
"I don't know what the question is. But other than clarification. So they're definitely again. It's going to be two channels that that's just the direct loan program. The economic injury just astronaut program which you apply for right. Now there are there not to be S the seven and Orleans available through traditional banks credit unions and lenders and there are a lot of lenders that are actively working with their borrowers and their clients not just to deport cameras on existing credit but to extend additional creditor new credit to help them meet their their current needs. So it makes sense to start. Having a conversation with your lender now and not one of these solutions is the answer. There's going to be a multi phase multipronged solution to economic injury. And we're all going to have to contribute to this Where we can and to the extent that we can't come If you're if you were in the process should use that number on your current application or on the disaster relief application again. Those are two different channels. If you had a conventional seven or I will or loan application process pre-crisis that application is still in process and again you should communicate with Leonard Secunda into where you are on that so I'm if you've also applied for an economic injury disaster directly from the SPCA it's going to be a completely different pool of capital in a completely different application crosses so Again this the sewer not interchangeable Some clarification on the Couple of questions back. I read online. That the cares act Is Not the same as the seven be? Sba loan program that is already available online on the SBA website. What is the difference if I go through the bank or both so to reiterate There's going to be two different solutions available. Actually I was going to be more than two different solutions available with was in place now is the SP direct economic injury disaster program as the seventy program that the that the writer callers referring to That is available right now. You should fly. Seventy program is a core. Spa Loan Support Program. That's knows emplaced. Pre-crisis is being considered for enhancement under the carrots. Act Now Battle still probably be called the seven loan program but it will be enhanced to meet some of the criteria that's being proposed in fact we don't know exactly she is. GonNa take but whatever shape that takes definitely going to be non delivered through Conventional Banks. Credit unions and other mission focused lender so two completely different channels one direct from SBA with the economic injury disaster loan. And then there's the seventy program and actually there's other programs out there as well. Bill come from banks credit unions and mission focus lenders. My recommendation would be exactly like Eric's which is applied for economic injury disaster loan. Now because that's what's available and then also start the conversation with your lender About what other options are out there or could be out there. Say next week or the week after the week after that Start having those those conversations now on working with your existing lender finding one that does Spa backed loans would probably be the best way to prepare for two reasons. One B Seven eight program already exists. Five four program already exists if you don't have an SBA lender you can go find Glenn. A bit already operates in those programs pre-crisis as Eric mentioned. And Ed Eric. I can no longer hear audio from David. Are we connected? Yeah he I'm in the same camp I I was just looking to see if it was on my end or his at appears on his. So we'll we'll let him Yup. We'll let him dial back in Okay one don't we move into the neck. I only have a couple of more questions How much is a proposed That's available under the the disaster injury program right now nationwide so so right now under the currently available economic injury disaster loan program each borrower plus all their affiliates is eligible for up to two million dollars funding through that program alone and that will not affect your ability to receive additional funding through either the conventional seven eight program thinks now or whatever enhanced program gets rolled out wants to cares act actually his act and looks like we got David Back. Welcome back thanks. Yeah we're good now. Did you want you know it's all right it's we're all in the same camp What was the? What was the last thing you heard most of it? Okay Good Yeah Yeah. All I was saying was just in. We're getting a lot of questions. I know the SBA Eric Specifically but all of his colleagues are limited in what they can talk about as it relates to proposal to slow legislation. I'm somewhat less limited than than Eric as but even then I am not in a position to promise things or or give definitive advice based on proposal just Latian. We've got hundreds of members of the House of Representatives who still to have their say on this piece of legislation But I would say if you're if you're a small business. Disaster Lawn is available today right now. Apply Not GonNa take you that much time go ahead and do that and apply anything that comes down. The Pike is going to come with an understanding that millions of small businesses have probably already applied to the economic injury disaster loan program. If it's if it's an enhancement to an existing. Sba a program like the way. Then make sure you're having conversations with your lender now about whether they do seven a loans if they don't Go go to the. Sba's website called lender match and find seventy banker and start that relationship now so that if a week or two weeks or three weeks. There are new enhancements to seventy program. You've already done that groundwork to have that relationship built say. Hey I'm I want to go after this. We've got a relationship and we can. We can do that now. That would be my advice if I had my own small business right now. That's what I would and I would add to that that you know. We have relationships with with all of the preferred lenders Within the community and if we can be a resource to certainly reach out to us we're we're happy to refer you to the folks that that we've worked with over the years all right. The last question is would you be able to provide examples of how of of how amount how'd the amount of injury loan amount should be presented to the SBA officer would all right? Yeah it's a little broken but you get you get than just and then then the lone officer. How much authority do they have? Tim or latitude. Do they have to make the loan amount decision? I can maybe talk to the first part and then maybe Eric can talk to the second part. On the first part the guidance that we've received his essentially This the definition of this and I don't mean to get kind of governmental on it but I think it helps understand how espy as approaching this The disaster started January. Thirty First Twenty Twenty The indata this disaster is quote unquote ongoing That's highly unusual. Normally we talk about a tornado. The tornado came through at this time on this day and that went out on this time on this day and the economic injury lasted. Xyz Is set This is ongoing so the guidance that we've received the latest guidance I had from SBA disaster office. is essentially February axles march or close to March actual March twenty seven. She should have a pretty good idea. Where you'RE GONNA fall from March in April May and June projected Documentation to support that. So if you're if you're if you're saying hey last April we did you know. I'll use a hotel. Perhaps it'd be easiest last day. We had this much In terms of occupancy in April we project this month because And then show the documentation. Gatherings of this number of people have been canceled. This number of weddings have been canceled. Here's here's the emails Our local state government gave a shelter in place order These are not essential business. Have that documentation ready to go with your projections to justify why you're saying. Hey in April May and June We're not gonNA make any money or whatever. That projection is So and maybe Eric can talk about the authority of the loan officer. I came to a limited extent when I can't tell you is number one The Disaster Assistance as WE UNDERWRITE. Economic injury disastrous. They've they've follows basic formulas now they won't disclose even to US internal partners. Exactly what the formulas are But it's probably going to be something like well. You're you know who goes procedure. Your gross profit for last year divided by twelve times however many months. We think we're going to have this economic injury place now. That's my speculation that to be something like that they're gonNa make some reasonable Basis war economic dream based solely on your Japan and for Some reasonable actions that are developed submitted. Along with your application. So exactly what they're going to. I don't know it's going to definitely be based on history plus any projections. They're going to have to kind of justify anything various too much from whatever formula that they're that they're authorized to use some authority to flex on that provided at the bar. Were has the ability to demonstrate that. Hey we approve me X. amount but I had this documentation shows there really should be x plus and the reason pluses because of these reasons that might be like this a seasonal and. I'm coming into the busy season or that you know. My dealer industry is more hard hitting than some other industries but they'll do justification to deviate GRONK. Whatever formula.
"sba" Discussed on Defenders of Business Value
"Fantastic question so we don't have one hundred percent transparency on how this is. GonNa unfold so they can tell you is every consideration. It's going to be made to assist small businesses as we move through this crisis so we're phasing in Solutions No frankly will phasing in the solutions that we have available right now and we'll building new tools to help address the need is also develops we come to understand how can be most impactful There was there's many consideration given to or or examined as we look at eight that's already been assisted with workm- you've been given compared to new programs. I think the ten years to be you know kind of air on the side of being generous. In the sense of providing the full breadth relief has become available later. Eric Creek me from wrong though. It's specific to the economic injury. Disaster Loan If say I initially apply and work with the SBA to get a loan? Neta value of a million dollars And this thing kind of keeps going on and we're still closed and I realized that I need an extra two hundred thousand dollars. Can I go back to the SBA disaster office and get an increase on that your David? That's a great point and you're absolutely right so yes you can actually go back and requested increase round look substantiation. So if you're approved say a million dollars today based on your documentary economic injury. The thing drags on further than the second two and down the road. You realize that another two hundred dollars. Additional funding not available. Conventional Lenders is going to be required in absolutely go back Nesper. An increase in the neck number injury disaster.