Secretary Mnuchin Provides Updates on CARES Act Relief Funds….

Treasury Secretary Steven Mnuchin provided additional information at the white house briefing today including an important new point:  Social Security recipients will not need to file an income tax return to see a direct deposit.

After instruction from President Trump all SSI recipients will participate in the economic relief programs without taking further action.  WATCH:

U.S. Treasury Secretary Steven Mnuchin previously announced that small businesses (0 to 500 employees) and sole proprietorships can start applying for the coronavirus relief funds on April 3rd. One week later, April 10th, self-employed individuals, 1099 contractors and s-corps can apply. [Visit SBA.gov/coronavirus]

[pdf link available here]

WASHINGTON – Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.

The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin.

“Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”

“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level,” said Administrator Carranza.

“Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”

The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA.

All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.

The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.

  • The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.

Loan Terms & Conditions

  • Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
  • Maximum loan amount up to $10 million
  • Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
  • All loans under this program will have the following identical features:
    • Interest rate of 0.5%
    • Maturity of 2 years
    • First payment deferred for six months
    • 100% guarantee by SBA
    • No collateral
    • No personal guarantees
    • No borrower or lender fees payable to SBA

Visit treasury.gov/cares for more information on SBA’s assistance to small businesses.

Get your paperwork together now, contact your local bank and make an appointment. You will need one year of expenses and payroll records. You can apply at your current (FDIC insured) bank. Treasury will use the FDIC system to mitigate lender risk. This means you can receive those funds deposited on the same day you apply.

This entry was posted in Big Government, Coronavirus, Donald Trump, Legislation, media bias, President Trump, Uncategorized, US Treasury, USA. Bookmark the permalink.

76 Responses to Secretary Mnuchin Provides Updates on CARES Act Relief Funds….

  1. Harvey Lipschitz says:

    This same IRS that could not find lois Lerner’s records?

    Liked by 4 people

    • trnathens says:

      Secretary Mnuchin and PDJT might want to address this…say, today?

      https://www.foxbusiness.com/small-business/rush-for-350-billion-in-small-business-loans-starts-friday-banks-have-questions

      Regional banks, local banks, and probably big banks are worried they aren’t going to make enough money on these loans to be profitable, and maybe they don’t want to participate.

      If I was Secretary Mnuchin and PDJT I would remind them that while profit can’t be ignored, whether they can “resell” these loans on the secondary market is of NO CONCERN, and SHOULD NOT be a part of the equation.

      If they don’t want to participate, fine. No more FDIC membership for them. And remember when local and regional banks bemoaned the fact that big banks were considered ‘too big too fail’…well, step up here, don’t worry about profit, and SHOW THAT YOU CARE ABOUT YOUR FELLOW BUSINESS OWNERS!

      Do you think I’m looking to MAKE A PROFIT by TAKING this loan?! NO, it’s to keep people paid and employed, and off the dole.

      You want to be relevant in the future? PROVE IT!

      Like

      • Merle Marks says:

        Was in the bank yesterday…they don’t have a clue what they are supposed to do…as a business owner, I can tell you the governments attempt to save employees is admirable…there will be few employers that survive this…past due bills at work and at home will sink business owner…

        Like

  2. Ironclaw says:

    Ultimately, this will fail. The government cannot pump enough money in to sustain the economy and it’s a mistake to try.

    Like

    • Zorro says:

      This might help if society was going to reopen in a couple of weeks but the blue governors are going to lockdown all summer and I’m afraid the red ones are going to follow suite.

      Liked by 3 people

      • mike says:

        Very important that there are enough chloroquines, AZM, vitamin C and D, and zinc readily available to enable non-immune people to engage in whatever is the new normal public interaction. It is clear that in some areas doctors have been using these prophylactically or to work while sick or exposed. Everyone needs to learn, just like people used to have routines in the tropics.

        In less dense areas, people should be able to choose their spacing and style. Do we need to wear 44s to protect ourselves from tyrants?

        Food distribution remains a weak spot for us. Grocery store lines 8-10 deep with idiots that cough or poor hygiene. It is hard to get to better stores at a longer distance. Not sure about the food delivery options where we live.

        Like

      • Rhoda R says:

        They might have a major problem with that if people see that the C/A/Z combo kills the virus they aren’t going to tolerate the stay-at-home nonsense. People are barely tolerating it now.

        Liked by 2 people

        • jello333 says:

          I saw people out and about everywhere today (mid-size Illinois city), in stores that are still open, at parks, driving, just walking around. This despite Pritzker being one of the first to try to “lockdown” everyone.

          Liked by 1 person

    • thedoc00 says:

      There is difference between sustaining the economy and sustain viability of a business and its work force. This is an attempt, granted a long shot, at preserving viability and work force. No profit included nor major business operations costs are being paid as would occur under a business subsidy type arrangement. Its a fie point but a clear distinction. It is also not oriented on clearing balance sheets as the was the fake bailout in 2009-09, which was supposed to help the economy but only succeeded in financing the movement to of our industrial base off shore.

      Liked by 2 people

    • amazed treetop downlooker says:

      Ultimately the UNCONSTITUTIONAL FED will be on the hoof for all this $ and will be driven over the cliff…GOOD RIDDANCE, LONG OVERDUE !?!
      Time will tell

      Liked by 2 people

    • frankmystery says:

      I look forward to seeing how this works for my sole prop business. I’m ecstatic to see they even remembered us little guys! After April 10th I’ll see how it goes!

      Liked by 1 person

      • jimrockfish says:

        I applied for the sole proprietor unemployment benefits in the CARES act yesterday and disaster loan from SBA today. See what happens with these. My business has gone from doing very well at end of February to a complete standstill by March 10. It’s unreal.

        Like you, I am grateful they recognized there are a lot of one man bands out here who need help.

        Liked by 2 people

        • frankmystery says:

          Best of luck to you! Its awful waiting for things to return to normal. We don’t qualify for any government program except for these, we’re on a tightrope. My calls and leads are down 412% from last year at this time. I’m normally drowning in calls to secure thier exterior house painting spot in my schedule and now they’re all “canceling temporarily”. I really hope enough good news hits hard soon to bounce this all back. Good luck & God bless!

          Like

        • HellInAHandbasket says:

          Good luck to you.

          Like

        • Vicus says:

          Same. I had customer in two weeks.

          Like

          • jimrockfish says:

            Frankmystery- Thanks for the kind words and good luck and God Bless you and yours. As a quick follow up, I looked at the Paycheck Protection Program but in my situation it wasn’t adding up to much help and the records they are wanting I really don’t have. I don’t actually pay myself weekly so have no payroll records.

            Like

    • GB Bari says:

      Secy. Mnuchin (or Pres. Trump) said four (4) weeks in response to a Q from a presstitute.
      The $2T was designed to carry the needs for 4 weeks.

      My guess is that Fauci & Birx will magically find numbers that they decide will let the President turn back on the national economy in 4 weeks (end of April).

      Like

      • lemontree says:

        First they said the models were based on data from China and Italy. Then when we found out China misreported cases & deaths, they said they are looking at data from Italy. Italy is now saying many cases may have been attributed to covid19 when it was actually another problem. Now they claim NYC data is being used to figure what other metropolitan cities may face. NYC is the most densely populated city in the country. I think too many questions are being asked about their data and models and you’re right the models will have to be “adjusted” soon.

        Liked by 1 person

      • jello333 says:

        That Fauci dude has gotten on my nerves like the rest of us, but I can see a silver lining in his (usual) doom and gloom attitude. He’s of course now getting praise from those who want this to drag on forever… mainly MSM and ruling-class Dems. But if he DOES do a 180 at some point in the near future, and explains exactly why and how he thinks we’re safe to come out of hiding, then that would be huge. Of course some of the usual suspects would then turn on him, but the average American wouldn’t… they would just breathe a sigh of relief.

        Like

    • The American Patriot says:

      Take your negativity out the door!

      Liked by 1 person

  3. TreeClimber says:

    Does this include disability recipients? My mother has received disability since her stroke and hasn’t filed taxes in several years. I would like to know if I need to tell her to file this year.

    (Please be patient with me if the answer was in the video: the toddler is sleeping finally and I do not want to risk waking him up.)

    Like

    • Sharon says:

      This detail showed up in a brief TV news report today in Oregon:

      “The Treasury Department said Wednesday that the IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate the $1200 checks to Social Security recipients who did not file tax returns in 2018 and 2019.”

      Just tossing those form #s out here in case that is helpful to you. I was doing a lot of scanning on different sites and did not capture the link that would identify which station it was.

      Like

    • iswhatitis says:

      I don’t know if the answer is in the video, as I haven’t watched it yet.

      But, the answer may in Steven Mnuchin’s tweet, above, where he says,

      Read here to see if you are eligible and if you need to take any action:”

      https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

      Visit the site.

      Like

    • Me says:

      If she isn’t required to file, they will use form SSA-1099 for the info but if she does have to file, then she is encouraged to file 2018 and 2019 (the IRS is assuming the non filing only goes back so far).

      Like

    • lemontree says:

      They mentioned today that there would be a portal created where people on social security for instance that do not file taxes could go and enter direct deposit info. If they don’t a check would be mailed, although they’d prefer to direct deposit.

      Like

    • COlibertybelle says:

      TC, the first paragraph indicated that seniors do not have to file tax returns, so I think your mom is in the clear. She should see some amount come to her w/o filing taxes.

      Like

  4. thedoc00 says:

    Besides trying t o get this ramped up in a hurry, Mnuchin faces a revolt from from the normal bank suspects as they were balking this morning about offering these loans due to “risk”.

    Of course sub-par, unsecured housing and student loans to people with no means to repay, wellll that’s OK. No speak of all the gratitude for bailing them out during the fake financial crisis in 2009 so they could clear the balance sheets to send loans and investments off-shore.

    Wonder if the President could stretch the Defense Production Act to include banks, Jamie Dimond’s Chase Morgan and Solomon Brothers would be a nice place to start.

    Liked by 3 people

  5. WSB says:

    I called my local Dutchess County NY bank tonight, after closing hours and amazingly the branch manager answered.

    She is still waiting for protocols from the bank. Even though the Government has a form, which I have filled out, my bank will also need a form filled out, and she does not know what paperwork backup will yet be required.

    I let her know I am waiting to file for 2019 in case there might further tax incentives, and my income swings widley from year to year. So far, I have a 2019 W9.

    She took my email and phone number, let me know they would be having a conference in the morning and all would be working through the weekend.

    She had a very good point that since taxes are not due until July, they might be able to take numbers and W-9’s from self-employed for now and accept actual IRS returns later.

    However, she still is unclear. This is just a first ground report.

    Will have more maybe tomorrow.

    I also spoke to a friend in NJ. And his Bank of America branch is shut down completely. I suggested that he call another branch outside his county and state to see if they could assist.

    Liked by 4 people

    • dbobway says:

      So you and I were writing at the same time, WSB.
      I’m a self employed carpenter for almost 40 years.
      I took care of my Parents, who both past away since I was 62, I’m 65 now.
      All I got, was my social security last year, no w-9, no 1099.
      I spent a couple hours today filling out a 1040 for old people,
      Then found out from the Covid brief today, I don’t have to file.
      I pray this works.
      My wife is the senior accountant for a Restaurant chain that laid off 3,000 employees last week. Right this minute she’s waiting till 11PM to submit her companies loan request.
      It was supposed to happen at 10PM, they backed it up an hour.
      That means they are trying?

      Liked by 2 people

      • WSB says:

        April 3rd is the first date for small businesses. That would be tomorrow. 12:00 AM

        April 10th is for independent contractors and self-employed.

        This is separate from the individual checks going to anyone who has ever filed taxes each year and those who have Social Security, from what I am reading. Those will be automatically sent either by mail or by direct deposit, depending on how your last IRS filing occurred or how you receive Social Security. My banker also knew that these are separate programs.

        Liked by 2 people

    • logicforoneandall says:

      You cant make this stuff up. I see local bank branches shut down. No drive thru ect. But businesses must go to banks to have some of the programs processed to receive the money.

      Liked by 2 people

  6. merlintobie says:

    I receive SSI, and food stamps.

    Every time SSI goes up (annual cost of living), Oregon takes it out of my food stamps – often the combined amount of the two goes down.

    So if the Feds give me $1200, Oregon will probably bill me $1500, or withhold my check. To cover the paperwork costs.

    Liked by 1 person

    • dbobway says:

      You need to move merlin!

      Liked by 1 person

      • merlintobie says:

        I live in paradise, a remote cabin in … Merlin Oregon. This is my last stop, I’d rather die than move to a nursing home.

        Liked by 3 people

        • dbobway says:

          Merlin, I love every square mile of the left coast.
          From San Diego to the Puget sound, and everything east. I want to be Joshua Slocum,
          he went sailing and never returned. Alas he was my age at 65, that is going to have to wait.
          We are/were shopping the Appalachians for our spot, that to will have to wait.
          For the price of a nursing home, the cost and the misery aren’t worth it.
          Be well.

          Liked by 1 person

        • webgirlpdx says:

          I hear you, Merlin. We have a little place over in Central Oregon. Even tho it’s blessedly quiet here around Portland, I’m dying to get over there, off the grid and unplugged from the madness.

          While Portland has really tarnished our reputation, the rest of the State, from the Blues to the Ocean down to your Southern Oregon, is still God’s country filled with Patriots. 🙂

          Like

          • 4EDouglas says:

            Amen- I live in NE Oregon, Union County. Grew up here on a Cattle and Wheat ranch.
            People don’t realize Oregon is mostly mountains and high Desert. The Willamette Valley
            is just a patch of green and cities. One of my favorite Poems.:
            Out Among the Big Things
            by Arthur Chapman
            Arthur Chapman

            Out among the big things –
            The mountains and the plains –
            An hour ain’t important,
            Nor are the hour’s gains;
            The feller in the city
            Is hurried night and day,
            But out among the big things
            He learns the calmer way.

            Out among the big things –
            The skies that never end –
            To lose a day ain’t nothin’,
            The days are here to spend;
            So why not give ’em freely,
            Enjoyin’ as we go?
            I somehow can’t help thinkin’
            The good Lord means life so.

            Out among the big things –
            The heights that gleam afar –
            A feller gets to wonder
            What means each distant star;
            He may not get an answer,
            But somehow, every night
            He feels, among the big things,
            That everything’s all right

            Like

            • webgirlpdx says:

              Beautiful, 4ED. How I wish I was looking out at the sunrise over Smith Rock right now…..and looking west at Mt. Jeff down the driveway. I’m just homesick for our true Oregon right now 🙂

              Liked by 1 person

              • 4EDouglas says:

                Yep, i can see the sunrise over the Eagle Cap wilderness. in the wintetrand Ilive right up against the foot hills of the Blues on the west side of the Grande Ronde Valley. I worked for Butler Aircraft for about 9 years as a Tanker Pilot. They don’t do Tankers any more Erickson bought them out. I Know about Sunrise in that area. Have a Picture of a sunset
                with hood and Jefferson both lit up red.. amazing country-love the whole place.

                Liked by 1 person

                • webgirlpdx says:

                  Awwww……Eagle Cap. Love all my childhood memories of the Wallowa’s 🙂

                  You and my hubby would have a lot in common. He’s a pilot and we still have a small plane. I love Mt. Jeff, because unlike Mt. Hood which is so busy with skiing and everyone from the City, I feel Jeff is all ours. Same with your Blues 🙂

                  Liked by 1 person

            • webgirlpdx says:

              PS…..my Dad grew up in Burns, and many years ago I bought 20 bare acres out there looking out at the Steens. It’s still all there but instead of a bunch of crazy Costco shoppers, the neighbors are free range grazing cows 🙂

              Liked by 1 person

              • 4EDouglas says:

                Spent a lot of time on a field study-working on my Degree in Biology there…
                Nice-the area is more Nevada/Northern Arizona. I worked a lot out of Prescott and
                Winslow Az. A lot like southeastern Oregon…

                Liked by 1 person

    • TreeClimber says:

      I feel your pain… my husband makes not quite enough for us all to live on, $12.46 an hour. Last month he had to take a fair amount of overtime just to make ends meet… we also had to renew our food stamps last month. Because he took overtime, they dropped our foodstamps (for a family of four) to $174 a month. In the last four months, we’ve plummeted from $500 a month (which was due to an error on their part) to $300 a month once they got their own error straightened out (which was reasonable) and then he got a $0.90-hour raise and they dropped us down to $200. Now he’s forced to work overtime just to cover the bills and they’re taking that as an excuse to drop us an additional $25.

      I’m so mad I could spit. Overtime is not supposed to be included unless it’s constant and steady, which my husband’s is not. They’ve been looking for an excuse to kick us off for years, really. Racism is very much alive and well in the local welfare system and whites better be prepared to fight tooth and nail if you’re interested in getting any help at all.

      I’m sorry about your situation. I wish we could prevail upon President Trump to assign another wolverine to examine the SNAP system. I know for a fact that there is a gross amount of fraud and abuse… (the renewal form even says that legality of residence will not affect benefits. **spit** Add to that they include in every packet a voter registration form…)

      Liked by 1 person

  7. dbobway says:

    The same IRS that won’t be sending any money to people who owe them money.
    The same 1099 small businesses that were out of work for 8 years and just got back on their feet.
    Not one word has been said about this.The IRS consider food servers and bartenders the enemy, and treat them as such. The country just laid of millions of them off. All of these folks create incredible amounts of tax revenue for the treasury, far more than they would ever owe.
    Like I said I have been looking everywhere, for an answer to this question, so I hope I’m wrong.

    Like

  8. bulwarker says:

    I can’t wait to read the news reports in six months showcasing the graft and misuse of these funds, unintended consequences being what they are. All I can think of is the failed “well-meaning” Obama-era programs, like cash for clunkers or the one meant to promote electric cars that had unscrupulous people getting golf carts for free.

    Like

  9. Bendix says:

    I’m not understanding what social security has to do with this.

    Liked by 2 people

  10. M33 says:

    Forgive my ignorance here.

    What category does Single Member LLC fall into? I am the only one in my business, but I am neither an employee or a sole proprietor.

    Can someone help guide me on this? I must be missing it…

    Liked by 1 person

    • WSB says:

      Being an LLC, you might be considered a small business, so call your bank in the AM to confirm. You might be able to file tomorrow.

      Like

    • Me says:

      Can you apply for the paycheck protection program?

      Like

      • WSB says:

        The Paycheck Protection Program is the Small Business Administration Program. And yes, many can.

        From what I am hearing, people will receive a check from the government if they are on Social Security or have filed taxes. This is a separate benefit.

        The SBA Paycheck Protection Program Grant/Loan is over and above the taxpayer check. This is a separate program to keep employees employed.

        Like

    • MostlyRight says:

      I have a two member LLC, my wife and I. My wife works full time at the hospital, with regular salary, benefits, etc. We mainly live off her income but take draws from the LLC once a month (around $2500) and in chunks as needed, though we try to roll most LLC income back into investing and growing the business. Our business got hit immediately by COVID19 related layoffs, which hits our income. But we have fixed expenses each month.

      I called by business bank and was told that since we do not have payroll, with associated SS/Medicare etc, and instead take draws, we will not likely be eligible. That’s $2500+ lost income per month and might not be able to pay contracted expenses even without paying ourselves. I’m talking foreclosures, wrecked credit after 25 yrs in business with never a single missed bill.

      Hoping to find something but it’s looking like the best I may find is an SBA Emergency Relief loan at 3.5% or so. I don’t think the CARE Act helps me.

      Like

  11. JL says:

    The sly bastard is beating Dems at their own game. I mean that in a most respectful way.

    Donald Trump giveth what the Democrats taketh away.

    Liked by 2 people

  12. Bendix says:

    What if someone already filed their return without putting any direct deposit information on it? Why do they tell people to do that now?
    People who get their civil rights violated file lawsuits and can win thousands.
    We get “up to $1,200.00”

    Liked by 1 person

  13. Trump Train says:

    Once again, a great example of how dispicable, out of touch the enemy of the state corporate media is. They truly are the most ignorant, vile, worthless piles of **** who exist on this planet.

    Liked by 1 person

  14. WSB says:

    I have to say, when I heard Elizabeth Warren responding to a question asking where she would get the money from for one of her programs, she said,”Ohhhhh…there’s money there.”

    So, what does she know that we don’t.

    There’s money there. Huh….

    Like

  15. Sentient says:

    A lot of things in that relief bill weren’t thought through and and should be tweaked. Like giving every person who has a mortgage the right to not pay it – without even having to show duress – and not even having it affect their credit history. Then they wonder why mortgage rates have been going UP even while bond yields have been going down. Funny how telling borrowers they don’t have to pay their loans makes lenders charge more – or not lend at all.

    Like

  16. COlibertybelle says:

    So I work in the communications center of a local bank, and I would like to just say to the naysayers at the beginning of this thread to “stuff it”. I hear everyday, all day, both the optimism and the despair of some of our customers, and I look at this Paycheck Protection Program as the true gift that it is. PDJT has miracle-workers on his staff (and he is one!!!) and I am fielding calls each day from folks who are truly grateful for what he is doing, including but not limited to the PPP of which my bank is a participant. I am incredibly proud and grateful to be part of what I see as a brilliant come-back plan. This help is giving so many great hope of getting thru this mess and I continue to love and trust my President…period.

    Liked by 3 people

  17. jello333 says:

    The timing of this news for me and my wife couldn’t be more perfect. My wife is disabled (MS) and gets SSI. I’ve been unemployed for some time, and can really only work from home because I can’t leave my wife home alone for long periods of time. I didn’t file taxes last year, and won’t this year, and I’m not even sure I’m eligible for the payment anyway. My wife, on the other hand, we knew she was, but we had also heard that we probably needed to file taxes to get it.

    So last night I went online and filled out all the (e)paperwork and tried to file, but in the last step it wouldn’t let me because we had no “taxable income”. So it tells me I’ll have to do it the old-fashioned way (paper), which I was thinking about doing in the next day or two. Like I say, I was mainly gonna do it for my wife’s benefit, because I doubt I’m eligible. But now?… Thanks Steve, or Don, or whoever is responsible. 🙂

    (I can’t tell you how grateful I am for this, whether it be $2,400 for the two of us, or $1,200 for just my wife… or even if NEITHER of us were eligible. I’m just grateful that we have Donald Trump in charge, and that HE, with some help, is gonna pull us out of this mess!)

    Liked by 1 person

  18. oldarmyblog says:

    I guess we (me and the wife) will be getting a check whether we need it or not (and we don’t). Both on SS. Wonder if it is going to be tax free….Ha.

    Like

  19. novanglus86 says:

    This is a disaster. Mnuchin and the President set expectations that we would be able to apply for funds through the banking system, starting today (APR3). We are a small LLC with 8 employees. I have been going back and forth via email/phone with my banker. They are not ready. I have assembled all the reports and forms as PDFs to upload to a system that does not yet exist. Sitting here with my thumbs up my back side waiting for someplace to put the application and supporting documentation.

    These are the same bankers who demanded a bailout and no oversight in 2008-2009. Now, they are worried about their liabilities and profitability. If the intention of this timeline/program was to break American small business confidence in the government and the banking system, consider it a job well done. They have NO timeline for when this will be ready.

    Likewise, I submitted an application for the SBA EIDL two weeks ago. Within 48 hrs, I received a notification that it was “in review”. That was the same day that the SBA website crashed and was offline. Since then, there is no place to check application status. Their website came back online with a more streamlined application process. They also suggested that you re-apply to get access to the $10k advance on the loan asap, without derailing the prior application in any way. So, I did that. I now have two applications, neither of which I know anything more about – just a black hole.

    Now, that said – we have had three existential crises for our business since we founded it 10 years ago. We are equipped to handle 90 days of crisis. That started in March for us, so we will get through May easily – June by stretching a little. Of course, this means the owners sacrifice income and pay staff – but no one considers that or recognizes what we do. Management is always evil and a bad actor in the narrative.

    The infuriating part is the pandering BS about how much they want to help us. They caused the destruction and now that want to provide the remediation – but on our backs. The government stopped the economic activity with their shelter in place edicts. That burden falls on me to try and keep my team whole. Then they want to lend us our own (taxpayer) money AND charge us interest – criminal, but workable at 0.5-3.75% with a portion forgiven. I am optimistic enough about the future business to eat that sh* sandwich. But, now they can’t even deliver on that and will finger point and blame others.

    In the meantime, I have stopped paying my bills to conserve cash for my own team. My customers have stopped paying me, because they are doing the same. There is no liquidity. There is no free cash flow from small businesses. By the end of April, if they don’t start depositing cash in accounts to make up for the economic activity that THEY HALTED, the country smashes into a brick wall – we were driving at 80mph before the virus hit. We hit the brakes and have been skidding to a stop before hitting the wall. This doesn’t look good for most of the small businesses.

    The stupid thing is that over the past 10 years, we have paid in MILLIONS in taxes from creating this business. If we had been allowed to KEEP it, we could endure a year or more of this BS. Start the Revolution now. In the words of John Adams in the musical “1776”, ‘This is a revolution, damnit, we have to offend somebody!’

    Liked by 1 person

  20. mdaush says:

    I applied for the EIDL four days ago and haven’t heard anything. I wonder if Trump is setting up the banks for the greedy bankers they are by showcasing how they won’t work with the little guy….thereby letting the feds do it. Unfortunately, I don’t think the SBA has their act together either.

    Like

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