My message for you today is very simple and very clear, look for the opportunity right now and plan for it! That’s it! While everyone is falling for the distraction, prepared people are making their moves right now! Whether you think Corona is real or fake, its a giant distraction to the opportunity that will arise from this.
The biggest move here that most small businesses aren’t realizing they have as an option (or they are too dumb to capitalize on it) is the Paycheck Protection Program which is $350 billion of the $2 trillion stimulus that is geared towards small business 500 employees or less. Small businesses are able to borrow up to 2.5x their average monthly payroll with a $10 million cap, and this is 0 recourse money as long as you will spend it on payroll, mortgage interest, rent or utilities in the two months after the money is received. If cut wages, fire employees and spend the money on dumb sht, then you will be on the hook to pay back the loan at a 0.5% rate with principal being due in 2 years.
No collateral, no personal guarantee- this is basically the best terms you could dream of on government money. The banks will of course be the biggest winners from this, as they will dish this money out as fast as they possibly can (distributions start this Friday) because they will make a killing off lending out this money.
Plus since they aren’t collecting mortages, can’t forclose on people, and aren’t issuing many new loans/mortgages, they are all but chomping at the bit here to make profit. Insert the PPP, 100% government backed money and you will have them skipping paperwork like the mortgage crisis all over again to hand this free money out.
The fees will vary with loan size: 5% for loans under $350,000, 3% for loans under $2MM, and 1% for loans greater than $2MM. The loans will not incur a capital charge. This means that banks stand to earn as much as $17.5 billion - and $10 billion if one assumes an average rate of 3% - for doing something the government is incapable of doing: handing out hundreds of billions in loans/grants to America's businesses in the shortest possible time.
What You Came For!
The PPP is live now! The application is here!
The Small Business Economic Injury Disaster Loans (EIDL) are also still available now here!
You can also look into an SBA Express Bridge Loan (EBL) pilot program here!
If you have questions there is a small business hotline number setup: 303.860.5881
You can contact your local community/state SBA representative for more information and a list of banks who are offering these loans so you can submit your documentation.
My friends if you aren’t putting yourself into position to gain from all of this, you haven’t learned a thing from 2001 or 2009 or any of the other past crisis you have read about and studied from others and its YOUR FAULT!
Those who act fast like usual will be rewarded the most!
Plan. Build. Thrive
P.S. Are you enjoying these emails that we have been publishing everyday for free? Share this with friends and family!