These strategies can help the owners of the smallest businesses applying for PPP loans
Customers Bank is holding off funding those loans until the SBA releases its guidance. Here are strategies to help you navigate the process — before, during and after your application. The SBA details first- and second-draw loans and loan forgiveness, and documents frequently asked questions on its website, as well. Typically, women and entrepreneurs of color have a tendency to request loan amounts they think they can get, instead of what they need, Bradley said. "There isn't a level of clarity of what is going to be required and how loan forgiveness is going to be calculated," Bradley said.cnbc.com
Loan extension offers hope to local businesses
After closing for about two months, an SBA loan helped pull Lia’s Hair Styling out of the hole for three months. “I wish more people would have gotten the loan, because I think it was really beneficial,” said Luanda Parrish, the manager. So far, SBA has approved $197 billion in low-interest loans for a variety of businesses and non-profits due to the pandemic. “It’s your baby, it’s your business,” George said. It’s really bad.”George’s business sprouted three months ago during the pandemic and said the loan saved her business.
Joel Osteen’s Houston megachurch defends getting $4.4 million in federal PPP loans
HOUSTON – Joel Osteen, the pastor at Lakewood Church in Houston, has come under fire in recent days after Houston Chronicle reported that the megachurch received $4.4 million in PPP loans from the Small Business Administration (SBA). Federal Paycheck Protection Program Loan data provided by the Small Business Administration (SBA) indicates that the loan given to Lakewood Church is the third-largest for any Houston-area business or nonprofit. The data shows that Lakewood Church applied for the loan on July 21 and that 368 jobs would be affected by the loan. In order to have the loan fully forgiven, the PPP loan must be used for payroll costs, interest on mortgages, rent and utilities. Osteen’s Lakewood Church and other megachurches have been criticized by some for taking part in the federal recovery program because of their tax-exempt status.
Trump administration to give Congress full virus loan data
WASHINGTON After prodding from Democratic lawmakers, the Trump administration has agreed to give Congress but not the public complete data on the millions of small businesses that received loans from a $600 billion-plus coronavirus aid program. Their concession came with a warning to lawmakers not to divulge confidential loan information to the wider public. Last week, the Treasury Department and SBA relented to pressure from lawmakers and watchdogs and agreed to publicly disclose details on which businesses received loans under the program. Under the new agreement, the agencies will provide the complete data on loans of all sizes to the congressional oversight panels. Economists have said the small business loan program has helped, though its hard to know by how much.
Mnuchin says businesses will need more help
Treasury Secretary Steven Mnuchin speaks during a Senate Small Business and Entrepreneurship hearing to examine implementation of Title I of the CARES Act, Wednesday, June 10, 2020 on Capitol Hill in Washington. Mnuchin, testifying before the Senate Small Business Committee, said the administration plans to spend the next 30 days looking at what measures should go in the next relief bill. There is no question that small businesses in many industries will need more help, Mnuchin said. Small businesses and larger businesses are going to need more help.New support measures will need to encourage business owners to rehire workers, especially those in the hardest hit industries like restaurants and travel, he said. The applications require more paperwork from small businesses than the paycheck protection loans.
These restrictions on coronavirus loans may surprise business owners
(Photo by Alexi Rosenfeld/Getty Images) Alexi RosenfeldA type of loan for small businesses impacted by the coronavirus pandemic comes with restrictions that may catch some entrepreneurs by surprise. "There's nothing that's so onerous about the EIDL loan terms in general," she added. EIDL termsUnlike PPP loans, disaster loans which carry a term of 30 years and a 3.75% interest rate require a personal guarantee and are backed by collateral for loans exceeding $25,000. Loan collateral can include tangible and intangible property like inventory and equipment. It would need written permission from the SBA to do so, if the old printer is among the items collateralizing the disaster loan, Lively said.cnbc.com
Burger chain Shake Shack to return $10 million government loan
Customers wait for to-go orders outside Shake Shack in South Beach on April 19, 2020 in Miami Beach, Florida. Shares of Shake Shack, which raised about $150 million in an equity offering last week, fell about 3% to $42 on Monday morning. Treasury Secretary Steven Mnuchin in a tweet said he was "glad to see" that Shake Shack would return the loan. On Sunday, President Donald Trump defended restaurant chains, hotel operators, and hedge funds accessing funding meant for small businesses. U.S. Democrats and Republicans are nearing an agreement on extra money to help small businesses, Trump said on Sunday.cnbc.com
U.S. small-business rescue loan program enters fourth day plagued by technical problems
WASHINGTON (Reuters) - The U.S. governments $350 billion small-business rescue program entered its fourth day on Monday, plagued by technology and processing problems that are delaying disbursements to businesses hurt by the novel coronavirus, according to industry groups, bankers and an email seen by Reuters. SBA also alerted lenders in the email that its technology platforms loan authorization form was not at all compliant with the terms of the rescue program. As of today Day 4 weve surpassed $35 billion originated; more than 100,000 small businesses have successfully applied and more than 2,000 lending institutions are up and running, the person said. According to two industry sources, paperwork problems have prevented all but a fraction of banks from distributing the funds. Some small businesses say they have had problems even finding a willing lender given that many are backed up with thousands of applications and are not processing new clients.feeds.reuters.com
Why male entrepreneurs in the US make double their female counterparts
There is no doubt that women-owned companies are performing better than they have at any other time in U.S. business history. But economists predict that in a few years female business owners should catch up to their male counterparts and things may start to even out. The high number of SBA loans made last year has been beneficial to both male and female entrepreneurs. Support has become increasingly available to women entrepreneurs. Getting to parity"It's encouraging that the percentage increase in revenue for women-owned businesses outpaced male counterparts.cnbc.com
Starting a business? Avoid these 5 classic entrepreneur pitfalls
Misjudging costsWith a business plan in hand, you'll have a better sense of your funding needs, which will help you avoid two classic traps: over- and under-spending. Do your best to estimate actual costs of funding your venture through launch and the first year. (The SBA offers a great startup costs tool that helps estimate new business funding needs. In many cases, you can't launch a venture alone you'll need partners or investors for funding and know-how. Get to know your customers and market many businesses stumble because they fail to understand their target market.cnbc.com
Amazon is testing a new program that lets it control third-party product prices as its pricing policy draws criticism
Amazon has launched a new program that gives it full price control over select third-party products sold on its marketplace, as the company's pricing policy comes under heavier scrutiny. Amazon started inviting third-party sellers to a new program called Sold by Amazon (SBA) last week, describing it as a "new, hands off the wheel selling experience." "To ensure peace of mind, for each SBA product, Amazon will provide a Minimum Gross Proceed (MGP) amount to protect your margins." Amazon's representative told CNBC the SBA program is designed to "save time and increase sales by automating prices so they can consistently and effortlessly offer customers great prices." The new program could blunt criticism of Amazon's pricing policy, which has drawn scrutiny for possible antitrust concerns.cnbc.com