All Forum Posts by: Mark Trebor

@C. Scott Forrest

I agree with everything you wrote except where you state its "OUR money", really its our debt!  2T works out to around $6000 for everybody in America!  In 2000 our national debt was 5.7T in 2019 the national debt was 23T.  We are on an unsustainable path, that scares me more then COVID.  Something is going to break but my crystal ball is not very good.  Runaway inflation as the value of our dollar declines? Maybe this won't happen because all other major super power are devaluing their currency by taking on more debt just like the USA?  Don't need to go to far into the weeds with this conversation.  Good luck!

@Chris Eidson

I found this powerpoint from the sba to be useful (dated 3-30-20) so who knows how accurate it is today.
https://www.sba.gov/sites/default/files/articles/EIDL_Information_and_Documentation_-_3-30-2020_FINAL_2_pm.pdf

Good luck!

@Jennifer Huba

Thanks for the info please reply to this thread with any news.  Good luck!

@Jennifer Huba

Lots of interesting feedback from people on this topic.  If you don't mind me asking, did your banker go into detail why you did not qualify?  Was it more of good luck don't waste your time, or was it you will not be approved for an EIDL because of reason A,B,C & D?  Check out this pdf link to the SBA it doesn't read like any banks are involved with the EIDL it specifically says the funds are coming from the Treasury.  Maybe the treasury partners with local banks and it chooses not to mention this.  Still confused :(

https://www.sba.gov/sites/default/files/articles/EIDL_Information_and_Documentation_-_3-30-2020_FINAL_2_pm.pdf

@J Scott Wondering if you have any pull at BP to expand on the Business podcast #50.  Reading these forums people are very confused.  And many are confused about some very basic issues.  Like the difference between the PPP and EIDL loans and then there are just standard SBA loans that always exist that I believe based on comments some people are trying to apply for and think they are applying for the EIDL or maybe even the PPP loan.  

So my wife and I own two businesses a private pre-school and then the landlord gig.  Our preschool has 5 employees of which all were laid off because our school was forced to shut.  They are all part time teachers and make modest salaries.  Their unemployment check from the state of MN will be around $200/week on average.  But they started receiving letters yesterday from the state saying they will be receiving an additional $600 per week, yes $600 per week! from the US government as part of the covid response.  So before they were laid off they made about $1600/mnth working part time.  Now being laid off they will make $3200/mnth ($200+$600) x 4weeks.  Absolutely crazy.   

So I would love for somebody to dig into this further.  Why would an employer in their right mind file for the PPP loan that may or may not be forgiven when you can lay your worker off and in our situation the employees make 2X what they were making employed.  This is bat sh*t crazy!  Good for the employees but it sounds like to government programs are seriously butting heads.  Might be a fun story to dig into?

@Jennifer Huba

Why were you in contact with PNC about the SBA loans?  Did you fill out the paper work for the EIDL loan on the SBA.gov website and then PNC contacted you after you did this?  I am confused.  Or do you bank with PNC and you discussed with the about the possibility of getting the PPP loan from the SBA?

BP Business Podcast episode 50 does a great job of explaining the EIDL and PPP loans available.  I highly recommend listening to it.

Is this a hypothetical question or is this really your situation?  Reason I ask is you say they are all paid off but only cash flowing a little bit.  I'm trying to wrap my head around how a house could be paid off but only cash flowing a little bit.

So I am guessing that this is a hypothetical question.  The other item I did not see mentioned is that when you sell a house you will need to give back the depreciation on the property.  So holding a house for 30 years it will be fully depreciated which means you will basically be paying taxes on the full sale price of the house.  All comes down to do you personally want the money or do you want to pass it on.  If you die and pass it to your kids their bases gets moved to the day you die or some number of days after you die I don't recall the details.  So allot of taxes get erased when you kick the bucket.  At least this is my understanding of the situation please feel free to chime in.

This might sound harsh but if you have 20K to buy the house but you don't have 30K to rehab the house this might not be the right deal for you.  I think you might be stretching yourself to thin...  Don't force a deal, you don't want to be house poor.  30K in rehab can quickly become 60K.

Wow those pics are crazy sounds like a city engineering problem.  But since those guy's never make a mistake your probably screwed unless you get lawyers.  Then you're screwed and broke.