Small business loan.

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504RP

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A friend of mine has chicken, houses,cattle and a small trucking business.

He told me his banker called him and told him that he should come apply for the small business loan program that the government has sit up because of Covid 19.

The banker told him it was a loan that he wouldn't ever have to pay back ? $ 21,000.

Told another friend about it. He said he knew of someone else we both know that got the same kind of loan. That person also has a few cows. I called and ask him about it to see if it was true. He confirmed it was. And told me you don't pay interest or nothing on the loan ? He banks at the same bank I do.

Yesterday I talked with a loan officer at my bank to see if it was true. And it was. She said it started sometime in April. Said when it was only offered to small businesses but because there was still funds left to loan out. Toward the end of April that offered the money for farmers also.

Loan officer said there were two ways you could apply. One was to borrow the money at 1 % interest and even at the loan officer said she has never seen a loan like that. That wasn't forgiven and the borrower wouldn't ever pay it back.

Or you could apply for it only if it was agreed that the borrower wouldn't have to pay it back before the loan was approved ?

I don't see how that could even be considered a loan ? She said the program ended May the 4 th.
 

greybeard

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I suspect it is a PPP. A federal small business 'loan' that is more like a grant than a loan. Paycheck Protection Plan. It originally was slated to end May 31 but ran out of funds May 4.

"PP Loans are a fantastic hand-up for small businesses. Here are three “need to know” aspects of the Paycheck Protection Program:

  1. It’s not just to cover paychecks.
  2. There’s money available.
  3. It’s not really a loan. It’s more like a grant. Prove you applied for the monies correctly, and you don’t have to pay it back.
The paycheck protection program application process ends May 31"

 
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504RP

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I suspect it is a PPP. A federal small business 'loan' that is more like a grant than a loan. Paycheck Protection Plan. It originally was slated to end May 31 but ran out of funds May 4.

"PP Loans are a fantastic hand-up for small businesses. Here are three “need to know” aspects of the Paycheck Protection Program:

  1. It’s not just to cover paychecks.
  2. There’s money available.
  3. It’s not really a loan. It’s more like a grant. Prove you applied for the monies correctly, and you don’t have to pay it back.
The paycheck protection program application process ends May 31"

PPP that's what she called it. But she said money had ran out and it ended May the 4th.

She didn't say it continued through May 31st ?
 

greybeard

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She didn't say it continued through May 31st ?
Programs like that have 2 different end parameters. A date, and/or a funding limit. Whichever occurs first. May 4th, they ran out of $$ effectively ending the program unless congress authorizes more funding.
 
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504RP

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Programs like that have 2 different end parameters. A date, and/or a funding limit. Whichever occurs first. May 4th, they ran out of $$ effectively ending the program unless congress authorizes more funding.
Ok thanks.
 

sstterry

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PPP that's what she called it. But she said money had ran out and it ended May the 4th.

She didn't say it continued through May 31st ?
There may be some sort of way that they are obtaining money from another source. My bank sent out an email that said the PPP money was exhausted, but they were working with another group for something. I have no idea what that is.
 
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504RP

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There may be some sort of way that they are obtaining money from another source. My bank sent out an email that said the PPP money was exhausted, but they were working with another group for something. I have no idea what that is.
I don't know how to find out if they do come up with more funding. That loan officer I spoke with never mentioned anything about the possibility of more funding.

I have done business with them for over 30 years. They financed several loans for me during that time. But in the last 10 years they were hard to work with when it came to loaning money that had anything to do with cattle.

I found other financing that was better to work with when it came to farming. The Loan officer told me that cattle were too much of a risk because they are living breathing animals and one lighten strike could kill the whole heard. Told her one tornado could wipe out a whole city and kill alot of people too.

Only good thing about messing with that bank. They are out counting cattle that they have loaned money on more than the the farmer they loaned the money too. So you don't have to check on them as often.
 

jltrent

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Put in your state and zip. I was late on this handout. The early bird gets the worm. Again unbelievable the handouts for a broke country. Kinda feeling sorry for some local businesses with the pandemic. Probably the best thing ever happened to them.
 

Ky hills

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Looks like bout everybody around here got in on it but us. Like others have commented on here, it looks like to me a lot of folks got large sums of money and never missed a beat in their businesses. Oh well I guess I’ll just keep on doing what I’m doing until I can’t and then maybe some of those rich folks will buy what’s left for pennies on the dollar.
 

greybeard

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Every sawmill in the area got one and never shut down. Over 4 pages, I only saw 3-4 ag related recipients. 2 hay producers (1 employee each) , a cheesemaker I didn't know existed with 12 employees and a plant farm.
 

simme

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Every sawmill in the area got one and never shut down. Over 4 pages, I only saw 3-4 ag related recipients. 2 hay producers (1 employee each) , a cheesemaker I didn't know existed with 12 employees and a plant farm.
No telling what lumber prices would be if the sawmills did not get that money. A small local newspaper company here got $1.5 million. They never missed a date publishing a newspaper. Can't believe they could have that many employees.
I am sure that there were some companies saved by this program, but I suspect most of the money went to those that did not need it to survive. That is the problem with these handout programs. Huge amounts of money wasted when only a few truly depend on it. And the new guys in charge are supercharged on these type giveaway programs. Government is overdue for a layoff with no severence or safety net. Based on the vote, it seems this is what the majority want. Basic problem is that many/most of "we the people" have become very irresponsible, lazy and corrupt and maybe just plain stupid.
 

D2Cat

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I noticed several received two checks of equal amounts (or maybe a dollar off). Must have been a husband got one and the wife got one.

Noticed local St. Farm office received 45K. How can that be? She was not out anything. Even if office was closed payments were still received.

All part of the Great Reset. Won't be long and any cash better be spent or it will be worthless. Get anything in the stock market into some kind of metal options, metal backed securities, I guess.
 

callmefence

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Any business that misrepresented itself should be prosecuted.
With that said most of you that posted above have no clue what your talking about. The fact a business didn't close doesn't mean it didn't suffer. Like the slow cashier y'all took turns making fun of a day ago. At least they are working. Heck there's a threads in here where "christians" have spoke of misrepresentation of cfap grants or disaster relief funds. ..lol
 

greybeard

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I noticed several received two checks of equal amounts (or maybe a dollar off). Must have been a husband got one and the wife got one.
Not always. Maybe not even 'most of the time'.
If you click on the business that got more than one payment, an explanation will come up. There was more than one phase of the program. Some businesses applied and got payments thru both phases.

cheesemakers.jpg


nontypical.jpg
 

jltrent

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I talked with a guy that got three checks so far who had a small store. For a small store it was unreal what he got. Maybe the 4 trillion proposed can go through and we all can get double the next payout.
 

callmefence

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I talked with a guy that got three checks so far who had a small store. For a small store it was unreal what he got. Maybe the 4 trillion proposed can go through and we all can get double the next payout.
Don't count on it...the founder of the feast is gone
.https://www.inquirer.com/business/small-business/ppp-vernon-hill-metro-loans-20210120.html
 

simme

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If the government shuts down a business due to covid, I believe a person could make a case for the government compensating that business for their loss. But otherwise, I don't see that the government's purpose is to compensate for all suffering. If that is the government policy, I can see people being very creative to seek out suffering, wallow in suffering, document their suffering and seek compensation for suffering. Pretty soon, we will just all be suffering on behalf of the government and on the government payroll for all needs.
 

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