Anyone notice?

Micahbigsur@msn.com · Posted: Thu Apr 02, 2020 12:05 pm Post subject:

I am not a math wiz, but I think in the end many people are going to be hurt by this pandemic. Yes some people, as always, will work it to their advantage but the vast majority will benefit in the hard times ahead. Isn't that a good thing, that our citizens in their time of need are getting help?

colbysmith · Posted: Thu Apr 02, 2020 12:29 pm Post subject:

Hey Jimmie, yes sounds like you have done, and know, the math. And how some will use it to their advantage. Smile

But I just don't see it making the average worker rich. But it is fun watching those against socialism begging for the handout. In the end, one of government's responsibilities is to protect it's citizens. We can agree/disagree with the politics all day long (somewhere else), but we are all in this pandemic together.

smckean (Tosca) · Posted: Thu Apr 02, 2020 8:53 pm Post subject:

Jimmie,

I have a question. I am retired, but I am advising a couple of friends on the island who are small business owners. I saw that provision where the "rules" for a SBA loan said that one could get an immediate $10,000 (an "advance" I believe they called it) before the entire loan came thru. I presumed this $10,000 was to assist the business owner to stay afloat until the rest of the loan amount became available. The rules did seem to say that this $10,000 did not have to be paid back (like free money). That struck me as strange indeed since the remainder (up to $10MM) would be a loan and be paid back; so why give the $10,000 away.

My surmise was that the "rules" were poorly worded. I'm going to guess that what they meant was the the business owner would not have to return the $10,000 advance in cash immediately, but that the $10,000 amount would be included in the loan balance and would get paid back over time just like the rest of the loan.

Do you know for sure which way it is. Is the $10,000 truly "free" money never to be thought of again; or is it just that the $10,000 "advance" would not have to be immediately returned?

Jimmie · Posted: Thu Apr 02, 2020 9:13 pm Post subject:

2 loan programs here. EIDL has provision for a $10k grant sba is required to give to applicant within 3 days of making application. That 10k does not get paid back.
Other is PPP payroll protection program basically free money to pay wages,rent,mortgage interest and utilities for 8 weeks. To the extent money is used for that it is free money ie forgiven