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Denmark assistance program
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Posted 3/27/2020 10:19 (#8142884 - in reply to #8141823)
Subject: RE: Denmark assistance program

Central North Carolina

To finish off this thread i have calculated my company's(construction) opportunity for small business loans. Here is the process for companies under 500 employees.

You compute your payroll cost for the last 12 months. Computed 2.5 months worth of that. For my company that is about 300k
You get a 10 year SBA loan at your local bank at 4% or less. The loan is insured by the feds. Banks will be cranking these out asap as they are fully insured and for their customers the deposit will come right back to the bank.

Next the loan is forgiven for certain expenses in the 8 weeks following the loan. These are payroll expenses, rent,  and some utilities.

However the loan if not forgiven for amounts for which salaries are reduced or salaries saved due to layoffs. So there is no incentive to reduce your payroll and for my company an incentive to rehire someone who was recently laid off. EDIT you can reduce pay 25% without penalty just got more detailed  info.

It gets the money out quick as i expect the banks will be ready next week if this passes today. There are applications and certification required to keep folks honest. Quite brilliant process imo.

Seems to me all farmers would qualify who have employees

For this to pay off the size of the stimulus need to be large enought to jump start the economy in the next 2 months for companies to have orders to fill.

When asked about the size of the TARP bill back in 2008 the administration later said that they thought the number was large enough to make the public think it would work.  That is why i believe the plan needs to trillions to convince the public it can work.

Edited by Douglas 3/27/2020 12:46
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