rafjaf said:
LOYAL AG said:
Update:
I have a client that was on a concall with Bill Flores. He said that the way the draft is worded the SBA will have 15 days to get the details ironed out. Then once it goes live approvals would be required within 36 hours. HOURS, not days or weeks. At this point I can't see how the SBA can play any active role in underwriting as they just don't have the resources. It's going to have to go through the banks with a big rubber stamp. My advice to my clients:
- Have details related to your non payroll expenses and be able to prove all of it.
- Have details for payroll.
- Have details of obligations you didn't meet because you ran out of money.
- Have details of debt obligations you weren't able to meet. Mortgage, car payments, etc.
- Remember if you're an S or C Corp you're on payroll so included yourself. if you're a Sole Prop, Partnership, etc. consult your lender as I don't really know how that would work.
Add all that up and be ready to go on Day 1.
So you have to wait until you miss payments and actually run out, not pay staff, etc. to get approved?
This. If you're already missing obligations not even 2 weeks after SHTF, who is going to underwrite you?
Side note-I heard one talking head say to draw LOC now even if you don't need it, if you don't the banks may not let you a few weeks or months down the road. Anyone experiencing or hearing of any trouble drawing on a LOC? We have a considerable amount of cash on hand, and intend to keep operating as we are an essential business, so I hate to do it unnecessarily.