YOU Tell the Bank the Amount of Your PPP Loan

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Disqualified? Thank you Politicians!

The Second Round PPP loan and the Targeted EIDL Advance both require businesses to prove their revenue reduced in 2020 from 2019 levels. But many businesses created a smart, creative “Pandemic Pivot” and their revenues are either the same as 2019 or maybe higher. Thus, they are disqualified!

We’re going to see a lot of folks have this problem. Frankly, we’re mad angry at the entire “25% and 30% reduction in revenue” required under the Second PPP and this targeted advance. It was a political compromise for the morons in government who didn’t want to step up and provide proper assistance to American Small Business Owners.

Why should you, or any other Small Business Owner be disqualified from a much-needed program simply because you were smart enough and creative enough to “pivot?”

That doesn’t take away the fact that COVID is ONGOING and the harm to your business—with or without a pivot—is ongoing.

It’s so ridiculous. And, yes, we’ve dedicated this to today’s “Trevor Rant Thursday!”

PPP Application: Who Underwrites The Loan Amount? THE BUSINESS OWNER DOES —> NOT THE BANK!

FYI: the banks, the loan officers, they are NOT supposed to re-underwrite your PPP loan application! They are simply supposed to verify you have submitted all pertinent documentation. Period. This is a common misconception!

The PPP program is a “self-certification” program, including calculating the math to arrive at the loan amount on the application.
Banks make us nuts in oh so many ways.

Schedule a call with us to review what is keeping you confused and possibly up and night wondering how to manage all of this nonsense!

Small Business Must Roll the Dice

This comment in an online forum about SBA EIDL loans says it all about two key concepts:

“…who knows what this winter is gonna be like here so I’m afraid to give it back yet.”

The business owner has EIDL monies left over and had considered (oh so briefly) prepaying the loan with the remainder of the monies. And then the new surge hit.

Concept #1: Utilization of EIDL monies as a way to replace lost revenue for working capital due to the COVID-19 pandemic. There is no finish line; no concrete timeline; complete uncertainty.

If you have not used all your EIDL monies, we recommend holding on to the funds through the coming months. You want to have a better understanding of a “diminishment” of the COVID-19 pandemic to such a level that there’s no fear of upcoming possible lockdowns where you have to close your business. Likewise, to know there’s no upcoming lockdowns to gauge if you will have customers coming through the door.

Concept #2: “who knows what this winter is gonna be like…” speaks to the SBA’s continuing failure to recognize the drastic difference of this disaster from all “traditional” natural disasters. The EIDL processing guidelines and the Loan Agreement and the lack of clear, unambiguous guidance on how to use the monies from and EIDL all need to be addressed by the Administrators of SBA.

We’re eight months into this pandemic; that’s more than enough time for this Federal Agency to have created at the very least some better guidance on how to use the monies beyond stating, “Working capital” in the Loan Agreement.

Business owners are terrified to use the funds incorrectly, many of them saying, “I don’t want to go to jail!” This is absurd.

SBA! Please, please, please, we are begging your Administration, recognize the unique features of the COVID-19 pandemic disaster and modify your guidance for EIDL funds so that business owners can use the money without fear of contravening the terms of their Loan Agreements!

We’re all holding on out here for this disaster to end. We’re all holding on out here, trying to survive and keep our business’ doors open. We’re all holding on for more detail from SBA and a resiliency to the fact this disaster is like no other disaster in American history.

Contact us with some good news if you are in a position to know what is going on in the background of this nonsense.

Can I Apply For Another EIDL LOAN?

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We received this question on Twitter:
I already received an EIDL loan. Am I eligible to apply for another?

The History of the Economic Injury Disaster Loan (EIDL) PROGRAM was that it was established back in 1953. It was created for individual disasters declared in any one of the United States causing homeowners and business owners an economic injury .

For example, this month it may be a tornado in Ohio county. Two weeks from now it could be a flood in the state of Mississippi.

COVID-19 created its own unique disaster. The Small Business Administration (SBA) responded by offering an EIDL loan for the pandemic. We make this distinction because we want to answer this question accurately.

The fact is, you can apply for  multiple EIDL loans, according to the SBA as long as they are for different disasters that have affected you.

In other words, if you received a COVID-19 EIDL loan in April, but your county was affected by a tornado in September (and it’s declared a disaster area), then you can apply for another EIDL for the tornado disaster. We confirmed this with the Small Business Administration (SBA).

You cannot apply for more than one EIDL LOAN for the same disaster. However, the SBA has a provision for up to 24 months (or two years after the disaster), for you to request additional funding above the amount of your original EIDL loan.

Leave a comment below or schedule an appointment with us for a free consultation.

Let us know if this is helpful and what other disaster financing questions you may have.

How to Apply for an EIDL Loan

We've compiled pages of Frequently Asked Questions for you as well as sample EIDL loan application for you to navigate the SBA disaster loan process.

COVID-19 Recommendations For Your Business Survival

We were recently invited to attend a professional event as guest speakers. At first we thought we would attend via video conferencing. We then discovered that the event organizers expected us to physically visit their office to participate in the event. This raised serious concerns for us, especially since Trevor was ill with COVID-19 over the Summer.  We sent an email to the event organizers expressing concerns and asking a series of questions about their safety protocols.

As soon as we hit the “SEND” button, we realized they could have been more proactive in providing information to us FIRST about the safety protocols. Thus was inspired the following advice to our business owners. We hope you will find this useful. We welcome comments about this advice.

DO MORE FOR YOUR CUSTOMERS WITH YOUR COVID-19 SAFETY PROTOCOLS AND MESSAGING

The time is right for you to help your customers with concerns about visiting your business. Step up your safety protocols and your message about those protocols. Many more Americans are aligned with recommended safety guidelines including mask-wearing and social distancing. As a business trying to survive through this pandemic, get the word out to more people that you understand their concerns.

With the ongoing COVID-19 crisis your customers have concerns about meetings outside of their home or office. Be proactive in your understanding of their concerns. Apart from any local, State or Federally mandated safety protocols, determine how you can add to those fundamentals. If you’re not required to provide free masks, do it anyway. If you’re required to have a certain size of plexiglass divider, install larger dividers. If you’re required to have a specified number of hand sanitizer stations, add more.

You can’t really go “over the top” during this pandemic; the more you do to acknowledge the concerns of your customers about their own safety and that of your employees, the better the likelihood of increasing your customer attendance.

Once you’ve done that, then you need to “go tell it on the mountain” and broadcast the level of protections you’ve implemented.

Get the word out through every channel possible. Your messaging could include a phrase like this: “We want to provide you with assurances of safety protocols before you visit our store/restaurant/office. We want you to feel safe during these uncertain times.”

With messaging like this, you are both acknowledging the “pain points” that many people are feeling and you are increasing the numbers of customers likely to visit. It’s not enough to attract customers who already feel more comfortable going out and about during the pandemic with less anxiety; you need to pry the other, more anxious customers out of their protective environments.  Your message and your protocols will accomplish that goal.

Take a proactive stance that can only raise your customer’s confidence in your attempts to keep them safe. We have some suggestions for advance messaging before a customer visits your office/store/restaurant:

  1. Consider providing a list of the safety protocols you’ve implemented. On the list, note which ones are government recommended and which ones you’ve added for the extra level of caution.
  2. The next suggestion is a really difficult concept because you are acknowledging the customers’ concerns in a way that many businesses fail to do. Essentially, you’re going to remove some of the burden of safety precautions from the customer.

While it may seem that the following questionnaire might frighten away people, we believe the opposite to be true: you will actually attract more customers.

Understand that the vast majority of Americans are already worried about being infected with the COVID-19 virus. Ignoring that concern, assuming that everyone is taking precautions into their own hands or trusting a business with only minimal safety protocols is a fatal mistake for a business trying to survive the pandemic.

Become a “partner” with your customers by acknowledging their worries. Create a dialogue to demonstrate your intense interest in their safety and that of your employees.

We recommend that you include in your messaging these additional information points about your focus on the safety of your customers and employees:

  • Describe how many other people will be in attendance on the day of the event/meeting/reservation, including before and during your customer’s visit.
  • Provide detailed descriptions of the protocols in place currently at your business.
  • Provide a diagram of the business space demonstrating the measurements in relation to your customer’s ability to maintain social distancing. Note the plexiglass and hand sanitizer locations on the diagram.
  • We recommend you send a questionnaire to customers either before they attend a meeting at your office or visit your store/restaurant. Make this questionnaire part of your safety protocols in advance of the customer’s visit.

We know that many businesses are providing a short form of this questionnaire only at the moment of entry. In our opinion, while this is compliant with recommended guidelines, it doesn’t do enough to soothe the worries of many more people. And you want to attract as many customers as possible to survive this pandemic.

We’ve set up a minimal questionnaire. You’re welcome to copy this and use it along with your local, State or Federally-mandated questionnaires:

Please REPLY to this email with your answers to the following questions so that we can assure your safety of you and the safety of our other customers:

  • What is your personal opinion on mask-wearing requirements? 
  • Do you wear masks constantly, occasionally, rarely, or never?
  • Have you been diagnosed with COVID-19 or been in proximity recently with someone diagnosed with the virus?
  • Have you attended a social or professional event with more than six people in the last 30 days?

We recommend you provide this questionnaire, along with the list of safety protocols at the moment a customer confirms attendance at a meeting or even when they make a reservation at your restaurant. We know that many business owners may be fearful that such communications may actually scare customers away. Frankly, we cannot imagine how your interest in clear communications and a dedication to customer/employee safety can be more frightening than the actual COVID-19 virus!

Remember that you want to attract the customers who are taking extreme precautions. They may even be the customers reluctant to venture out of their homes.

Wishing you the best during these difficult times! Stay safe, stay well.