04-05-2020, 10:27 AM
(04-05-2020, 10:10 AM)6andcounting Wrote: The SBA released a paper application early last week, but each bank had to develop their own electronic application. The SBA opened the application process Friday at 12:00am, but banks couldn't do most of the work needed for their online application until the SBA finalized everything - which was at the Friday at 12:00am release. Banks are doing 100% of the process and the handling of the paperwork evidence for the loan forgiveness. All the SBA is doing from here on out is providing the funding to banks when they make a request that they are ready to disburse loan funds.
The program is not intended to keep businesses profitable or replace lost revenue. It's intended to keep employees getting paid and cover rent/mortgage/utilities expenses on businesses' structural property so they don't get evicted. Any money used for those purposes is forgivable. Funds not used for those purposes have to be repaid as a loan. The APY on the loan was originally capped at 4$, but I think I saw yesterday they lowered it to 1% - so it's still a really cheap loan.
I think our bank was changing forms because they weren't sure what they needed.
I understand the repayment part and that it's not to replace profit but rather cash flow. I'm just saying that in three months if our sales stay low there will be no cashflow on the other end instead and we will suffer then instead of now. And, again, not slamming the program..just that it may need extended if that is it's purpose.
Your anger and ego will always reveal your true self.