This bill, which was dead on arrival in the Senate, included an additional $300 per week in unemployment payments as well as funding for schools and the postal service. Why is this failed bill so important?
Because they knew it would fail in the first place and still voted on it.
Why would the Senate of our great United States of America waste time on such a manner? The answer is Symbolic Legislation. When lawmakers use their process to signal key voters and donors on their commitment to a certain issue, they will vote on something that they know will fail. This is also used when they are trying to rally their base in support or opposition of a particular issue.
In other words, they’re playing politics.
These lawmakers are now fooling around with matters of life and death. Our country is in trouble. Our population needed for them to get something done, and what did they do other than knowingly waste time?
When legislators are willing to play politics with matters as important as these, how can anyone have faith in our government? Any faith that we had is certainly diminished.
Leaders on both sides are now saying that there is no possibility of anything meaningful passing before the November elections.
I guess that it’s just up to us now.
Let me leave you with this one thought…
More than 225,000 PPP Loans with nearly $23B were approved in Illinois. That money has effectively kept many small businesses open over the past six months.
That money is now largely gone. Without additional stimulus money, many are expecting an unprecedented wave on bankruptcy filings.
Nationwide, large commercial bankruptcy filings including public companies and larger concerns, are up 55% through September 1st. Without additional help, most are expecting small and medium sized businesses to follow.
As with any business downturn, it will always be the weaker businesses that file first. Businesses with a tragic flaw in their business plan, others that were already part of on-going legal issues that aren’t going well, or businesses with entrepreneurs who were already of an age to retire are generally first in line. Next come the real hard luck stories, the businesses that could have made it if they just had the correct amount of funding.
Then come the businesses that made the mistake of giving all of those businesses credit.
I’m writing to you today, in the hopes that you will become overly cautious. This November 15th marks my 30th year of entrepreneuring. I’ve taken my businesses through war, famine, death, pestilence, and everything else that you could possibly imagine. The only way that I have been able to do it is through constant thinking and planning. I drive even myself crazy at times thinking about contingencies.
I’m telling you now, if this is coming, you need to be ready.
Review your credit plan. Look at your clients on a case by case basis. If you need to cut someone off or severely limit your exposure, the time to do it is now, not after they have filed.
Cash is the lifeblood of any enterprise. Make sure that you will not become a victim of your receivables. Have a solid plan in place. Think this through.
If your plan requires additional capital, then the time to secure it is now, rather than when or if all of this comes to pass. What bank is going to be in a hurry to lend anything to anyone, if they are worried about their own creditors and capital requirements?
Whenever I think of situations like this, I think of the ’78 to ’81 recession. At the height of that nightmare, banks were lending money at 15% if you had good credit, collateral, and cash flow. 23% or more money was common if you didn’t. Depending on how deep and how long this one becomes, we could possibly see something similar.
If you need help or need a second set of eyes reviewing your credit issues, please call. If you need additional help in funding, know that we are here to help. We’ll all get through this one together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. 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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