Small Business Owners (Virus Crisis)

[Polaris]

March 17, 2020 / 11:52 AM

Trump wants to send Americans $1,000 checks to cushion virus economic shock

Alexandra Alper, Steve Holland

WASHINGTON (Reuters) - U.S. President Donald Trump announced a plan on Tuesday to send money to Americans immediately to ease the economic shock from the coronavirus crisis and said military-style hospitals will likely be deployed to virus hot zones to care for patients.

Treasury Secretary Steven Mnuchin, appearing with Trump in the White House press briefing room, said he was talking with congressional leaders on a plan to send checks immediately to displaced Americans. Trump said some people should get $1,000.

Scrambling to get a grip on an unpredictable virus that has disrupted Americans in all walks of life, Trump predicted the economic challenge will be tough short term but that the economy will eventually rebound.

“We’re going to win and I think we’re going to win faster than people think, I hope,” said Trump, surrounded by top advisers on the coronavirus crisis.

Vice President Mike Pence said the government was urging construction companies to donate N95 face masks to local hospitals and not purchase any more to help doctors.

Pence said the Army Corps of Engineers can deploy field hospitals quickly to help handle the influx of virus patients. Trump said he was looking at sites where they might be needed.

Trump on Monday urged Americans to work diligently for 15 days to try to slow the spread of the virus by avoiding crowds and staying home for the most part.

“We’re asking our older generation to stay in their homes. ... We’re asking the younger generation to stop going out,” said Trump coronavirus adviser Deborah Birx.

The abrupt slowdown has staggered the U.S. airline industry and other economic sectors and has left an increasing number of Americans unemployed.

With markets gyrating and mostly on a downward trend, Mnuchin said the U.S. stock markets should remain open to assure Americans that they can access their money.

“Everybody wants to keep it open. We may get to a point where we shorten the hours, if that’s something they need to do, but Americans should know that we are going to do everything that they have access to their money at their banks, to the money in their 401(k)s, and to the money in stocks,” Mnuchin said.

Trump urged Americans not to travel and said he had not ruled out travel restrictions to parts of the country. He said Americans just “enjoy their living room.”

https://www.reuters.com/article/us-...to-cushion-virus-economic-shock-idUSKBN2142XF

 

[MrMessi]

Did anyone understand the 10% subsidy the prime minister is giving too small businesses for wages?

 

[doggystyle99]

I fully expect the federal government to either extend the tax deadline for companies or even provide very low or zero interest loans to us and hopefuly both. If they don't a lot of companies in many different industries will be in a lot of trouble.

The federal government did the right thing by extending the federal and personal tax deadline, to August 2020. As well mortgage deferment payments for up to 6 months is helpful to all.

Did anyone understand the 10% subsidy the prime minister is giving too small businesses for wages?

Didn’t give too much details of it, full details will come out within the next few days.

 

[doggystyle99]

I do hope all the business owners who have a viable business have applied for CEBA through their bank, although $40 000 for a lot of businesses is not much but it does help in keeping things going until the shutdown is lifted.

 

[G.D. Gentleman]

I do hope all the business owners who have a viable business have applied for CEBA through their bank, although $40 000 for a lot of businesses is not much but it does help in keeping things going until the shutdown is lifted.

Sadly it's only a loan with at most $10,000 potentially of it forgivable. It does provide interest free repayment terms and deferral of first payment to Dec 31, 2022 - but leaves the applicant on the hook for $30,000-$40,000 they will have to pay back from future revenue in these uncertain times. Oh, and it converts to a 5% annual load in 2023 so there's that to keep in mind long term as well.

https://www.td.com/ca/en/personal-banking/covid-19/small-business-relief/
https://www.scotiabank.com/ca/en/pe...siness/canada-emergency-business-account.html

If a second or third round of lockdowns are mandated by our governments we can only hope they in turn can do more to help SMB's out or closures and bankruptcies are going to go much higher.

 

[simcity]

This is crazy on all accounts. I am able to pay my employees full pay to stay at home. But with the expenses of the building and other things i can’t do this for much longer. I’m figuring by August I’ll have to lay them off which kills me. Company income in at zero and even if we opened up today who knows if our income will comeback at the same levels.
My advisors are telling me to close the company and restart when we come out the other end. The 40,000 loan will help but that will just pay the fixed cost for a few months. Not an easy decision but one that keeps me up at night. On top of that I asked all the employees to come back and they fear for themselves and their families Heath so I don’t blame them.

 

[G.D. Gentleman]

This is crazy on all accounts. I am able to pay my employees full pay to stay at home. But with the expenses of the building and other things i can’t do this for much longer. I’m figuring by August I’ll have to lay them off which kills me. Company income in at zero and even if we opened up today who knows if our income will comeback at the same levels.
My advisors are telling me to close the company and restart when we come out the other end. The 40,000 loan will help but that will just pay the fixed cost for a few months. Not an easy decision but one that keeps me up at night. On top of that I asked all the employees to come back and they fear for themselves and their families Heath so I don’t blame them.

Thank you for a real world account and experience simcity. In a few sentences here you truly captured what many SMB owners are facing, and feeling at this time.

I have several clients who are in the same situation and forecasts as you have. I didn't want to post on their behalf and be accused of hearsay and not understanding as my situation is different then theirs and yours, but I do feel for you and the struggle you are facing during these difficult times.


Is it alright to ask how many years you've had your business? Understand if you rather not share, but wanted to ask.

 

[onthebottom]

Second funding of the SBA PPP program is much smoother. 1m loans distributing 90b have been made in the first 3 days. The expenses and payroll amounts are forgiven by the SBA.