I’m hesitant in writing this because I feel like an enabler. I need to renew my basic objections. Debt is bad. Your only job once you go into debt is to figure out how to get out. It’s much easier to show consistent profits when being out of debt.
It’s also easier to run a business when you’re not worrying about the banks. The best day of my life was when I paid off my last debt. There’s a freedom involved which is priceless.
Please also realize that the EIDL Loan is not for everyone. I have written prior columns in reference to this. They can be found here.
EIDL Loans are not intended for dividends, distributions, shareholder loan repayments, or expansion. You aren’t supposed to take this money and buy the building next door. The intention of the loan is payroll, rent, utilities, and business credit cards.
That being said, it’s a thirty year loan, zero points, and 3.75% interest if you are a for-profit enterprise. The terms are tough to beat.
If you’ve already received the initial $150K loan, and know that additional funds are needed, then this is possible. Many are saying that it isn’t, but it is.
The original intent of the EIDL Loan was to cover an economic injury, not to just arbitrarily send out $150K to anyone with a credit score above whatever. This isn’t easy to do.
I’m not making any promises, but Secretary Carranza got in front of Congress and told them that the EIDL Loans would cover six months of your operating expenses. If you have a business where six months of operating expenses are more than $150K, then by definition, they should add on to your loan.
You will need to prove a need, and monthly financial statements created by the right accounting firm (I wonder who that is) are necessary for your request to be beyond reproach.
It is similar to the process I just wrote about in getting a turn down reconsidered. I will provide the individual details on this process later in the week.
Let me leave you with this.
It looks like we’re headed for another lockdown. The numbers for the C-19 virus have gone up as many thought that they would. It doesn’t take a rocket scientist to realize that most people get the flu in the fall when the seasons change.
Here we go again.
I’m trying to get all of you to think ahead. It’s important to have contingency plans in place if it does happen. If they stay at this point, what do you do? If they roll back some of the opening plans, what’s next?
We will get through this. There will be a tomorrow. If you’re having difficult times, you need to get your head right about this thing. As many of your competitors go out of business, that leaves more for you. There can be substantial profits as a result of this.
Put your plans in place. Plan your work and work your plans. It’s the only way to maintain any amount of sanity.
Do so knowing that we are here to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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