Covid 19 PPP and Disaster Relief

[jaxstraw]

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@AzCreditGuy wrote:

Wow

Did you guys read the link that @Jax put out for us? It states on there if you get an Advance of $10k and get REJECTED

An attractive feature of this is that the SBA will advance up to $10,000 of the proceeds of an EIDL to an applicant on an expedited basis, within three days after the SBA receives an application. If the SBA ultimately rejects the application, the applicant may retain this $10,000 advance without needing to repay it.

https://www.quarles.com/publications/a-few-cautionary-notes-on-the-covid-19-loans-available-to-small...

Please refrain from commenting unless you read the article, this will help all business owners who want more information. 

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Wow.....I missed that entirely and posted the article.

For clarity though it should be stated this isn't an official release from the SBA but an piece that was written upon examining the rules.

But that is pretty amazing..

[AzCreditGuy]

My comment wasnt posted anyone Just a read the article and see for yourself. And for those that applied like myself, will have more info when the process is complete

[werthere]

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@AzCreditGuy wrote:

My comment wasnt posted anyone Just a read the article and see for yourself. And for those that applied like myself, will have more info when the process is complete

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Nothing in that article is necessarily true, especially points number two and three.

a.) Double dipping is most likely possible, just that the up to $10k advance will be subtracted from any forgivable grant under the PPP loan.

b.) Current loan covenants. Again, this is on case-by-case basis, and chances are no bank will tempt faith by taking adverse action against their borrowers for taking on additional debt through these government programs.

The guy that wrote this article is guessing, just like we are.

[Anonymous]

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@daveg38 wrote:

I went ahead and applied, too. Fingers crossed.

I do not think these will be credit based because it literally says these advances do not have to be paid back.

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Which is why IMO they will not be handing out advances left and right.  IMO an applications approval chances would have to be obvious to them in their initial evaluation.  Otherwise why wouldn't the government say, if you're a business that falls into this category(s), here's 10k.  

SBA has always been a huge pain the @$$ and has a loan approval rate of about 7%, so it's no wonder they have been chosen to administate this process.  IMO you can expect to see a high rate of denials within every 72 hour period, designed to ensure most business aren't handed free money...

[werthere]

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@Anonymous wrote:

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@daveg38 wrote:

I went ahead and applied, too. Fingers crossed.

I do not think these will be credit based because it literally says these advances do not have to be paid back.

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Which is why IMO they will not be handing out advances left and right.  IMO an applications approval chances would have to be obvious to them in their initial evaluation.  Otherwise why wouldn't the government say, if you're a business that falls into this category(s), here's 10k.  

SBA has always been a huge pain the @$$ and has a loan approval rate of about 7%, so it's no wonder they have been chosen to administate this process.  IMO you can expect to see a high rate of denials within every 72 hour period, designed to ensure most business aren't handed free money...

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I'm skeptical as well. The problem is how do they make a determination who's worthy and who's not within 72 hours and hundreds of thousands of requests? All based on what applicants put down? Without any due dilligence? I smell b******t.

[jaxstraw]

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@Anonymous wrote:

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@daveg38 wrote:

I went ahead and applied, too. Fingers crossed.

I do not think these will be credit based because it literally says these advances do not have to be paid back.

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Which is why IMO they will not be handing out advances left and right.  IMO an applications approval chances would have to be obvious to them in their initial evaluation.  Otherwise why wouldn't the government say, if you're a business that falls into this category(s), here's 10k.  

SBA has always been a huge pain the @$$ and has a loan approval rate of about 7%, so it's no wonder they have been chosen to administate this process.  IMO you can expect to see a high rate of denials within every 72 hour period, designed to ensure most business aren't handed free money...

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While everything you say makes perfect and logical sense based on historical precedent the only thing I will add is the application is so basic there is almost no way of verifying who is a good choice for acceptance and who isn't.

They ask for as little information as I have ever seen on any app.

Who knows though ? It's all uncharted territory.

Thanks for your input.

[Anonymous]

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@werthere wrote:

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@Anonymous wrote:

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@daveg38 wrote:

I went ahead and applied, too. Fingers crossed.

I do not think these will be credit based because it literally says these advances do not have to be paid back.

---

Which is why IMO they will not be handing out advances left and right.  IMO an applications approval chances would have to be obvious to them in their initial evaluation.  Otherwise why wouldn't the government say, if you're a business that falls into this category(s), here's 10k.  

SBA has always been a huge pain the @$$ and has a loan approval rate of about 7%, so it's no wonder they have been chosen to administate this process.  IMO you can expect to see a high rate of denials within every 72 hour period, designed to ensure most business aren't handed free money...

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I'm skeptical as well. The problem is how do they make a determination who's worthy and who's not within 72 hours and hundreds of thousands of requests? All based on what applicants put down? Without any due dilligence? I smell b******t.

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IMO 3 days is more than enough time for them to look at personal and biz credit profiles, that's where most approvals hidge on anyway.  I'll be watching to see how it all plays out, but I won't be holding my breath for a deposit 3 days from now.

[bloccoblu]

I applied for the economic injury disaster loan via fax and email last Friday while their systems were down and online applications werent available. I have since recieved email confirmation today thanking me for the application that it was being processed but in the interim to apply online for the advance. I had already done that yesterday morning so hopefully they'll be processed sooner rather than later. The email from SBA was promising and I know that they are at least working applications. From what I understand though is that the PPP is the best option as portions if not all are forgivable. The PPPs are to be administered by banks with the no personal guarantee, self employed are eligible, and that minimal doc is required per the bill. I have yet to find the banks that are participating though. I called Wells Fargo this morning and they dont have protocol in place and to contact SBA. I contacted my local SBA and she said we recieve info at the same time or if not faster than them...interesting response... Hopefully there will be some action by early next week so I at least know the loan options specific to me. Good luck everyone!!!

[Anonymous]

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@jaxstraw wrote:

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@Anonymous wrote:

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@daveg38 wrote:

I went ahead and applied, too. Fingers crossed.

I do not think these will be credit based because it literally says these advances do not have to be paid back.

---

Which is why IMO they will not be handing out advances left and right.  IMO an applications approval chances would have to be obvious to them in their initial evaluation.  Otherwise why wouldn't the government say, if you're a business that falls into this category(s), here's 10k.  

SBA has always been a huge pain the @$$ and has a loan approval rate of about 7%, so it's no wonder they have been chosen to administate this process.  IMO you can expect to see a high rate of denials within every 72 hour period, designed to ensure most business aren't handed free money...

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While everything you say makes perfect and logical sense based on historical precedent the only thing I will add is the application is so basic there is almost no way of verifying who is a good choice for acceptance and who isn't.

They ask for as little information as I have ever seen on any app.

Who knows though ? It's all uncharted territory.

Thanks for your input.

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I agree with you as well Jax, but I see the kurtness of the application as a 1st step.  You give them some basic information about you and your business, which allows them to verify and see credit profile.  Then within the 3 days period, they either deny or ask for additional information.  Denying would stop the 10k from being deposited, and if they're approving the app, it would be okay for the 10k to be deposited in that time frame.  I will be interesting to see how it plays out, but I doubt they will deivate too far from standard lending practices, even given the situation.

[jaxstraw]

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@Anonymous wrote:

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@jaxstraw wrote:

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@Anonymous wrote:

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@daveg38 wrote:

I went ahead and applied, too. Fingers crossed.

I do not think these will be credit based because it literally says these advances do not have to be paid back.

---

Which is why IMO they will not be handing out advances left and right.  IMO an applications approval chances would have to be obvious to them in their initial evaluation.  Otherwise why wouldn't the government say, if you're a business that falls into this category(s), here's 10k.  

SBA has always been a huge pain the @$$ and has a loan approval rate of about 7%, so it's no wonder they have been chosen to administate this process.  IMO you can expect to see a high rate of denials within every 72 hour period, designed to ensure most business aren't handed free money...

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While everything you say makes perfect and logical sense based on historical precedent the only thing I will add is the application is so basic there is almost no way of verifying who is a good choice for acceptance and who isn't.

They ask for as little information as I have ever seen on any app.

Who knows though ? It's all uncharted territory.

Thanks for your input.

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I agree with you as well Jax, but I see the kurtness of the application as a 1st step.  You give them some basic information about you and your business, which allows them to verify and see credit profile.  Then within the 3 days period, they either deny or ask for additional information.  Denying would stop the 10k from being deposited, and if they're approving the app, it would be okay for the 10k to be deposited in that time frame.  I will be interesting to see how it plays out, but I doubt they will deivate too far from standard lending practices, even given the situation.

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It will be interesting to see if anyone reports on notification of credit being pulled.

Many of us use services that let us know.