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  • #31
    Originally posted by Tim View Post
    Since you run a cash practice, is there a possibility of a delay in the ability of patients to pay?
    Just a musing, not a challenge. Stay healthy regardless.
    Thanks Tim. A possibility, but not one that is materializing yet. Still seems stable, tho it’s a little scary to consider all the future possibilities. But at this point I could not honestly say that a loan is necessary. It could become necessary in the future, or not. I’m just grateful to be mildly anxious about this, rather than experiencing the stress of being on the front lines, or very sick.
    My Youtube channel: https://www.youtube.com/channel/UCFF...MwBiAAKd5N8qPg

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    • #32
      Originally posted by Antares View Post

      Thanks Tim. A possibility, but not one that is materializing yet. Still seems stable, tho it’s a little scary to consider all the future possibilities. But at this point I could not honestly say that a loan is necessary. It could become necessary in the future, or not. I’m just grateful to be mildly anxious about this, rather than experiencing the stress of being on the front lines, or very sick.
      This is our current conundrum.

      Our group (cancer care) has seen minor decrease in volumes, but projections over next 2-3 months are for massive decrease. I think 2020 will def be worse than 2019 for revenues. Right now no immediate plans to cut back on support staff salaries, but could be a possibility. ?Do we look into this PPP loan based on projections?

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      • #33
        Originally posted by WCInovice View Post

        This is our current conundrum.

        Our group (cancer care) has seen minor decrease in volumes, but projections over next 2-3 months are for massive decrease. I think 2020 will def be worse than 2019 for revenues. Right now no immediate plans to cut back on support staff salaries, but could be a possibility. ?Do we look into this PPP loan based on projections?
        Why not?

        Worst case scenario you took out a 1% loan that you need to pay back in two years.

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        • #34
          Originally posted by jacoavlu View Post
          Why not?

          Worst case scenario you took out a 1% loan that you need to pay back in two years.
          Couldn’t agree more. Focus not on the uncertainty but on the opportunity. It’s a very low risk proposition and, even if you “lose”, you still come out ahead.
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #35
            Would jump on it right away
            Local Wells Fargo already telling customers that they 'spent' all their loan money already and not taking any new PPP apps at this time
            My bank says 2-3 days to review app, no up front info available on funding/timing

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            • #36
              I was told we were approved though I have not seen loan papers from the bank or heard exactly when funding happens

              its not a bad deal for the banks. They get 5% fee for small loans, 3% for larger loans, 1% for really big loans. This is a fee SBA pays the bank, not the interest rate.

              If banks are inundated with requests this may incentivize them to process larger loans first.

              edit: I believe these are the bank reimbursed processing fees:
              • 5% for covered loans up to $350,000
              • 3% for loans between $350,000–$2,000,000
              • 1% for loans ≥ $2,000,000
              Last edited by jacoavlu; 04-06-2020, 08:41 PM.

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              • #37
                for those interested some discussion here, cloud accounting podcast
                https://podcasts.apple.com/us/podcas...=1000470440235

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                • #38
                  an SBA admin https://mobile.twitter.com/SBAJovita was live tweeting some stats last Friday as well. Last update was $5.4B in loans issues at an average loan of a little over $300k.

                  that equates to a business with a yearly payroll of about $1.5M.

                  of course averages don’t mean much with stats like this. The median loan amount would be a more useful figure.

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                  • #39
                    Originally posted by jacoavlu View Post
                    If banks are inundated with requests this may incentivize them to process larger loans first.
                    Potentially a loan of x would yield a commission of y:

                    $349,999 x 5% = $17,499.95
                    $350,000 x 3% = $10,500.00
                    $1,999,999 x 3% = $59,999.97
                    $2,000,000 x 1% = $20,000.00

                    So the game plan is to lure the banks with a $1,999,999 loan request, then last minute say "oops, I meant $199,999, my bad". ✓✓✓ (joking...kinda)
                    $1 saved = >$1 earned. ✓

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                    • #40
                      A few quick questions regarding PPP and CARES ACT:
                      1) Just to continue the thread - has anybody had luck with banks if you are not an existing customer with them? I've reached out to several and all of them say they are only accepting applications from existing customers. If someone has had luck, can they list banks. I'm located in Pennsylvania if that matters.
                      2) Just to make sure I am reading the current language correctly...I am an IC paid solely 1099 with no employees and business essentially 5% of pre corona levels. My understanding is that for those making >100k year, the max that can actually be forgiven is $20,833.33 (100k/12 *2.5). Is this correct? That was my interpretation from Kitces: https://www.kitces.com/paycheck-prot...able-sba-loan/
                      3) How does EIDL work in conjunction with PPP? I was a little confused as to what I read. Would the 10k advance be in addition to the PPP amount, reduce the PPP amount or would you have to only use PPP and give any EIDL money back.

                      Thanks.

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                      • #41
                        Originally posted by JK View Post
                        A few quick questions regarding PPP and CARES ACT:
                        1) Just to continue the thread - has anybody had luck with banks if you are not an existing customer with them? I've reached out to several and all of them say they are only accepting applications from existing customers. If someone has had luck, can they list banks. I'm located in Pennsylvania if that matters.
                        2) Just to make sure I am reading the current language correctly...I am an IC paid solely 1099 with no employees and business essentially 5% of pre corona levels. My understanding is that for those making >100k year, the max that can actually be forgiven is $20,833.33 (100k/12 *2.5). Is this correct? That was my interpretation from Kitces: https://www.kitces.com/paycheck-prot...able-sba-loan/
                        3) How does EIDL work in conjunction with PPP? I was a little confused as to what I read. Would the 10k advance be in addition to the PPP amount, reduce the PPP amount or would you have to only use PPP and give any EIDL money back.

                        Thanks.
                        I'll give you my understanding, but I should say that the guidelines my local bank is using don't always completely match with what I read online. It looks like not everybody is interpreting the guidelines in the same way, especially in calculating how much loan you qualify for.

                        1. I am going with a local bank but was looking at Sunrise Bank online - it looks like they are still accepting applications from non-members. https://sunrisebanks.com/stories/cri...mulus-package/

                        2. The max that can be forgiven is how much you spend on payroll plus rent plus utilities in the 2 month loan duration. The 2 months start when the money appears in your account. The way I interpret forgiveness is it's capped at a 100K/year rate per individual, ie $8333.33 per month. You can pay yourself more than that but the forgiveness is capped at the 100K/yr, so over the 2 month duration the forgiveness of salary is capped at $16,667. Note that there is a difference between how much loan you qualify for and how much is forgiven.

                        3. My understanding of the EIDL is if you received the 10K EIDL your forgiveness would be reduced by that amount, making the EIDL essentially an advance on the PPP.

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                        • #42
                          EIDL will reduce the loan amount but will not need to be paid back. Request that for sure.
                          https://www.sba.gov/funding-programs...rgency-advance

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                          • #43
                            Great posts jocavlu. Appreciate your updates.

                            My update

                            I have many corporations and have applied to 5 banks. Applications and documents are straight forward. Unfortunately all these banks (some are household names) are quoting me actual processing time of 2-3 weeks. So I am confused how the heck 5.4 billions were already "processed"? I guess it pays to have an "in"

                            Still I am hopeful all small businesses will get support from this, not just first come first serve.

                            Currently it is very stressful if you are small business owner. Times like these its 1000x worse being an "owner".

                            Good luck to all.

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                            • #44
                              Originally posted by formerly_cn View Post

                              Still I am hopeful all small businesses will get support from this, not just first come first serve.
                              it definitely is first come first served and businesses with connections are getting served first

                              Mnuchin says he's asking for another $250B
                              https://twitter.com/stevenmnuchin1/s...154809345?s=20

                              so far it's largely a s-storm with gov and big banks getting trashed
                              https://mobile.twitter.com/search?q=...d_query&f=live

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                              • #45
                                Originally posted by jacoavlu View Post

                                it definitely is first come first served and businesses with connections are getting served first

                                Mnuchin says he's asking for another $250B
                                https://twitter.com/stevenmnuchin1/s...154809345?s=20

                                so far it's largely a s-storm with gov and big banks getting trashed
                                https://mobile.twitter.com/search?q=...d_query&f=live
                                Yep.

                                Still, Hope springs eternal.

                                Love the Twitter storm. I'm assuming majority small businesses are in the same boat of uncertainty re: actual funding help.

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