4 ms·

I've gotten several inquiries (more than in the past 10 years) on LinkedIN recently from 'investors' offering financing for companies 'in trouble'. I run a very

by eruci 7y ago

I've gotten several inquiries (more than in the past 10 years) on LinkedIN recently from 'investors' offering financing for companies 'in trouble'. I run a very small company that is completely bootstrapped and I have never used any outside funding for anything I've done. Yet, they found me. The sharks are circling, they smell blood.

avalys 7y ago
Every small business owner in the US should check out the details of the CARES Act (the coronavirus rescue package, just signed into law). Essentially, the US government will cover your payroll, rent, and a few other things for the next 2 months, up to $10M. This is implemented as a “loan”, so that it can be rapidly issued from existing commercial banks - but the principal will be forgiven once you provide documentation that it was spent on covered expenses. You don’t have to pay it back. It’s not perfect, but it might be just enough to bridge the gap for many businesses until things start returning to normal. Hopefully, Congress will extend it if necessary.
- ac29 7y ago
  Do you have a link for this? The stuff on sba.gov doesn't mention the forgiveness portions of these loans anywhere I can find, so the only info I've seen is summaries provided by news media. There are various covid-19 related programs on sba.gov, but none of them seem to exactly match how the news has described them, and I think one could easily apply for the wrong type of loan assuming it would be forgiven and end up on the hook for the full amount.
  - avalys 7y ago
    Here is a link to a description from my CPA (I know their site looks like shit, but they are legit). https://wcginc.com/blog/paycheck-protection-program/ https://wcginc.com/blog/paycheck-protection-program/ It is called the “Paycheck Protection Program.”
- themagician 7y ago
  It can be used for rent but doesn’t actually cover rent. The loan amount is 2.5x average monthly payroll.

by eruci 7y ago

avalys 7y ago

Every small business owner in the US should check out the details of the CARES Act (the coronavirus rescue package, just signed into law). Essentially, the US government will cover your payroll, rent, and a few other things for the next 2 months, up to $10M. This is implemented as a “loan”, so that it can be rapidly issued from existing commercial banks - but the principal will be forgiven once you provide documentation that it was spent on covered expenses. You don’t have to pay it back. It’s not perfect, but it might be just enough to bridge the gap for many businesses until things start returning to normal. Hopefully, Congress will extend it if necessary.

ac29 7y ago
Do you have a link for this? The stuff on sba.gov doesn't mention the forgiveness portions of these loans anywhere I can find, so the only info I've seen is summaries provided by news media. There are various covid-19 related programs on sba.gov, but none of them seem to exactly match how the news has described them, and I think one could easily apply for the wrong type of loan assuming it would be forgiven and end up on the hook for the full amount.
- avalys 7y ago
  Here is a link to a description from my CPA (I know their site looks like shit, but they are legit). https://wcginc.com/blog/paycheck-protection-program/ https://wcginc.com/blog/paycheck-protection-program/ It is called the “Paycheck Protection Program.”
themagician 7y ago
It can be used for rent but doesn’t actually cover rent. The loan amount is 2.5x average monthly payroll.