Disaster Relief Loans For Integrators Examined

By Donald Maye, Published Mar 23, 2020, 03:23pm EDT (Info+)

Integrators are being impacted by the coronavirus. Now, the US government is offering Economic Injury Disaster Loans (EIDL).

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We researched this, including contacting the Small Business Administration to better understand how the process works and the likelihood that this will help integrators.

Executive *******

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Comments (20)

thats great that they are offering the loan. I just wish they could have done it at a much lower interest rate, Near 0 really.

I especially think they should be offering this to companies in industries that are mandated to be shut down.

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I just wish they could have done it at a much lower interest rate, Near 0 really.

I would assume, even at 3.75%, they are going to lose money (i.e., subsidize this) because a non-trivial number of borrowers will eventually default. But even at 3.75%, the interest is not a lot, e.g., $100,000 loan, that a little over $300 in interest per month.

The bigger unknowns is what they will actually approve the loan for.

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Maybe IPVM should offer to reduce rates for members?

or extend by 6 months for example

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Well, then, we would be in financial peril and have to layoff employees. Is that what you want?

At the same time, for individuals who are laid off or lose their jobs, we will work to help them have IPVM access.

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Maybe you should read and constructively comment on more articles to get credits back.

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Our biggest nut is payroll. I believe there are some bills in the works that will help employees that get laid off.

We are about to wrap up a LOC, and honestly I do not want another loan. This LOC will suffice, and if I do not have to worry about paying employees while at home, I think we will be fine.

Even if I get a loan, I can not pay employees for 3 to 4 weeks while at home, then have to pay that loan back.

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Jay you should look into the paycheck protection program. It is easier to apply for and will, essentially, turn into grant money if utilized within 8 weeks of issuance for expenses such as payroll, payroll taxes, workers compensation premiums, contract employees, medical premiums, utilities, and mortgage interest.

It is a bit of paperwork but provides two full months of funding for the above and does not need to be paid back if utilized properly (essentially, free money). Catch is that the company cannot lay-off or furlough employees.

If the money is not used for the above it simple reverts to a low interest loan.

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I saw that

I am not sure we will qualify as we still owe some taxes and are on a payment plan.

We also are about to close on a LOC this week, and that may bump us out of the "Can't get a loan elsewhere". Not sure if that pertains to the disaster loan though.

If we can't do that, I believe there is also some unemployment programs we can use.

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I didnt see anywhere where having access to other loans or owing taxes disqualifies you. Can you post a link

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I have watched many webinars and its what I Picked up from some of them.


here is a screenshot from one webinar. It does say if the loan is greater than 350K so.....

Fast, Easy & Affordable SBA Financing – SBA.Help

Does My Business Qualify For an SBA Loan?

SBA Loan qualification is pretty simple. There are a few requirements that you must meet, such as operating your business within the United States and not having any existing debt obligations to the government. Surprisingly, it's not nearly as strict to qualify for SBA Loans as one would think.

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I beleive thats a different loan program than what i was referring to then. The one i was referring to is the CARES stimulus act where they give you a loan based off of 2.5 months of payroll and as long as you use those funds for payroll and you can prove that you use those funds for payroll, the government will forgive 8 weeks of the payroll costs. Meaning they give you free money to make 8 weeks of payroll. So far i havent seen any disqualifiers. You can also use some of it for rent payment and utilities which the govt also forgives.

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Yeah, its been a busy week of watching webinars etc. and lots of info. You could be right.

Thankfully my daughter started school in marketing, and finished in accounting. She has a passion for dealing with numbers, and the IRS. So she is the person I am assigning this to. :)

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We had a webinar yesterday by the Virginia SBA association. One question they couldn't answer was - if the proposed grant/forgiveness that Congress is working on, for paying employees to stay on the payroll instead of laying them off, can be applied to one of these SBA loans.

They also said you don't have to take the money once approved which allows you to apply now and if things are better at the time of approval you can just not take it

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My issue, especially for small business is that you have to repay the loan. Those businesses that may need it the most are the least capable of repaying it. The economic impact of this mess will far outstrip the health aspect.

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That sounds weird to read aloud... The terms are very favorable and the benefit is for the money to be available. Credit requirements are very low. Not sure how you can justify the citizens paying for every integrator to stay in business.

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It sounds like many millions will be getting a "loan" via the new stimulus package. What's another couple trillion bucks if we don't ever have to pay it back?

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I didn't say I think the citizens should pay to keep people in business. I'm not for bailing out auto, air or anyone else. My point is that if they have to pay it back, it may still not help some businesses that run tight in the long run, just delay their demise. And, the Citizens (all of us working 50+ hours a week trying to get ahead) will get stuck holding the financial bag as usual. This won't be good.

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Michael please look into the payroll protection loan. As summarized above, this loan does not need to be repaid if utilized according to the terms of the loan.

It is a game changer for us.

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For UK integrators here is a link to a summary produced by Deloitte as guidance to the latest funding support being provided by the UK Government: -

Covid-19 Government Response - 24/03/2020

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