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MY NAME IS RICK ORTIZ, PRESIDENT, CEO OF THE GREATER DALLAS HISPANIC[GDHCC Straight Talk on January 21, 2021]
CHAMBER OF COMMERCE, HAPPY NEW YEAR TO EVERYBODY THAT'S JOINING US THIS MORNING, AS WE HAVE OUR FIRST STRAIGHT TALK FEATURING THE SBA TO DISCUSS NEW RELEASED FUNDING FOR SMALL BUSINESSES.OUR GUEST HOST, SOMEBODY THAT WE KNOW VERY WELL HERE IN OUR COMMUNITY, SOMEBODY THAT HELPS US AND WORKS WITH US AND WORKS WITH THE BUSINESSES THAT WE WORK IN REPRESENT.
AND WE'LL GET INTO HIM AND WHAT HE WILL BE TALKING ABOUT HERE IN A SECOND.
BUT FIRST, I WANT TO THANK OUR SPONSORS AND PARTNERS THAT HAVE MADE THIS TODAY POSSIBLE.
AND THAT INCLUDES ATMOS ENERGY, COCA COLA SOUTHWEST BEVERAGES, ONCOR, AND DALLAS COLLEGE.
SO THAT BEING SAID, I'D LIKE TO GET STARTED AND HERB, MR. AUSTIN, DISTRICT DIRECTOR DALLAS FORT WORTH DISTRICT OFFICE.
HERE WE ARE GETTING RIGHT TO THE CONVERSATION ABOUT THE FUNDING, BUT YOU'RE GOING TO GIVE US SOME UPDATE, YOU'RE GOING TO TELL US I GUESS, WHERE THINGS ARE TODAY IN TERMS OF THE RELIEF FUNDING FOR SMALL BUSINESSES AND FROM THE PPP TO THE IDLE TO WHATEVER ELSE YOU HAVE GOING ON.
AND WE'LL GET INTO SOME DISCUSSIONS AND QUESTIONS THAT WE'VE GOTTEN FOR SOME OF OUR MEMBERS REGARDING SOME OF THE SOME OF THAT RELIEF FUNDING AND WHAT THAT MEANS FOR THEM AND WHAT OPTIONS THEY HAVE.
AND SO GOOD MORNING, HAPPY NEW YEAR.
HOW ARE YOU? HAPPY NEW YEAR AGAIN, GOOD MORNING.
WE THANK YOU SO VERY MUCH FOR FOR THE INVITATION.
AND THANK YOU TO DIANA AS WELL.
SO WHAT WE'RE GOING TO BE DOING TODAY, YOU KNOW, WE HAVE LIMITED TIME, >> I WOULD BE MORE INTERESTED IN YOUR QUESTIONS.
I WANTED TO TALK ABOUT THREE THINGS.
I WANTED TO TALK ABOUT THE VENUES.
WE'RE GOING TO START WITH THE VENUE.
I'M SURE SOME OF THE MEMBERS COULD VERY WELL BE ONE OF THESE.
THE VENUES HAD TO SHUTDOWN AS A RESULT OF THE PANDEMIC.
THE MOTION PICTURE THEATERS, THE LIFE PERFORMING ARTS.
THE MUSEUMS, THE LIFE PERFORMING ARTS I MEAN, YOU NAME IT, ALL OF THESE ORGANIZATIONS, YOU KNOW, ONCE THEY SHUTDOWN IN MARCH, SOME OF THEM NEVER REALLY OPEN.
SO A PACKAGE THAT WAS SIGNED INTO LAW A FEW WEEKS AGO INCLUDED $15Â BILLION IN GRANT MONEY FOR THESE ORGANIZATIONS.
UNFORTUNATELY SBA IS STILL WORKING ON THE IMPLEMENTATION, SO WE DO NOT -- WE ARE NOT IN A POSITION YET TO TELL YOU WHERE THE APPLICATION IS YET FOR YOU TO APPLY.
AND FOR THE REQUIREMENTS, APPLICATION AS OF FEBRUARYÂ 29, 2020.
THE APPLICANT CAN NOT RECEIVE A SECOND DRAW OF A PPP LOAN.
SO THEY HAVE A CHOICE TO MAKE, SO SHOULD I BE APPLYING FOR GRANT MONEY OR SHOULD I APPLY FOR FORGIVENESS LOAN.
IF YOU ARE THE FIRST DRAW, IT IS ALL RIGHT.
IF YOU PLAN TO PLAN TO APPLY FOR A SECOND DRAW ON THE PPP, YOU MAY WANT TO THINK IT OVER BECAUSE I THINK YOU HAVE A BETTER CHANCE TO GET MORE MONEY UNDER THE GRANT PROGRAM, WITH A MAXIMUM OF $10Â MILLION AND YOU QUALIFY FOR UP TO 45% OF YOUR GROSS REVENUE.
WE'RE TALKING ABOUT A SIZABLE AMOUNT OF MONEY FOR THIS OPERATION.
IT IS A PROGRAM, WE ARE WORKING ON THE IMPLEMENTATIONS YET.
WE ARE STILL WAITING ON THE DAY WHEN THEY TELL US, OKAY, THIS IS THE SITE TO GO TO WHERE THE APPLICATIONS SIT.
WE DO HAVE A SITE HOWEVER THAT WE WOULD LIKE TO SHARE AND THAT'S WHERE THE APPLICATION WILL BE IN ANY EVENT.
SO YOU MAY WANT TO CHECK EVERY SO OFTEN AND LET YOU KNOW WHEN IT IS AVAILABLE.
IF YOU ARE TO GO TO THE SBA.GOV/CORONAVIRUS RELIEF.
THAT IS WHERE THE APPLICATION BECOMES AVAILABLE.
THE SECOND THING I WANTED TO TALK ABOUT IS THE EDIL.
A COUPLE OF THINGS HAPPEN ON THE EDIL.
IF YOU REMEMBER, INITIALLY, PART OF THE STATUTE, THE WAY IT IS SAID, IT IS NOT
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ONLY AN SBA IMPLANTED PROGRAM.YOU ARE ACTUALLY IN THE $10,000 REGARDLESS OF THE SIZE OF YOUR BUSINESS, AS GRANTS, WHEN YOU APPLY FOR THE EDIL INITIALLY, IT WAS VERY CLEAR, IF YOU WERE A SELF PROPRIETORSHIP, YOU WOULD APPLY AND REQUEST A GRANT UP TO $10,000.
WELL THE SBA DECIDED WE MAY NOT HAVE ENOUGH FUNDS TO SUPPORT ALL OF THE APPLICANTS, SO WHAT WE ARE GOING TO DO, WE ARE GOING TO OFFER ANOTHER ALTERNATIVE.
$10,000 -- -- A THOUSAND DOLLARS FOR EACH EMPLOYEE, UP TO $10,000.
IF YOU HAVE TWO EMPLOYEES AND YOURSELF, YOU WILL GET 3,000.
A LOT OF US ARE SELF EMPLOYED AND THE CONTRACTORS WERE ONLY ABLE TO GET A THOUSAND DOLLARS.
SO WHAT THE SBA DECIDED TO DO IS THERE IS MONEY BEING PROVIDED FOR SBA TO GO BACK TO SOME OF THESE RECIPIENTS OF A THOUSAND OR 2,000 AND MAKE UP THE DIFFERENCE.
SO IF YOU ONLY RECEIVED $2,000, AND YOU DON'T NEED TO CALL THE SBA AND YOU DON'T NEED TO CALL THE DISASTER CENTER, THEY HAVE YOUR APPLICATION, WHETHER YOU GOT THE LOAN OR NOT.
IF YOU GOT IN ADVANCE OF LESS THAN 10,000, SBA WOULD MAKE YOU WHOLE.
UNFORTUNATELY, YOU NEED THE -- THE APPLICATION NEEDS TO BE LOCATED IN A TARGETED AREA.
IT IS REALLY FOR PEOPLE WHO HAVE THE OPERATION AND BUSINESS IN UNDERSERVED COMMUNITIES, AND UP TO NOW, THEY HAVEN'T DEFINED WHAT A TARGET AREA IS.
I THINK THEY ARE PAYING SOME CONSULTING FIRM TO DO SOME RESEARCH FOR THEM.
SO WE WILL HEAR ABOUT THAT HOPEFULLY SOON.
YOU KNOW, WHO WOULD BE RECEIVING THAT MONEY.
WHETHER IT IS GOING TO BE BASED ON A ZIP CODE, WE DON'T KNOW YET.
IT IS SOMEWHAT GOOD NEWS, BAD NEWS IN THAT SOME OF US WILL BE GETTING THE MONEY.
THE SECOND THING, IF YOU ARE TO RECEIVE A PPP, IF YOU RECALL ON THE APPLICATION THAT YOU FILLED OUT, THEY HAVE TOLD YOU THAT THEY WOULD DEDUCT ANY ADVANCE THAT YOU HAVE RECEIVED.
THEIR THOUGHT PROCESS WAS YOU DOUBLE, IF WE GET YOU AN ADVANCE, WHICH IS A GRANT, AND THE LOAN WOULD BE FOR GIVEN.
THE SBA CHANGED, THE SBA DECIDED, IF YOU GET AN ADVANCE BY WAY OF EXAMPLE, IF YOU ARE GETTING A PPP FOR $20,000 AND ADVANCE FOR 2,000, YOU WILL BE RECEIVING $18,000.
IMAGINE IF YOU RECEIVED 10,000 BECAUSE YOU HAVE 10 EMPLOYEES OR SO.
SO THE AMOUNT WOULD BE REDUCED BY A LOT.
WELL, THE SBA DECIDED AGAIN, WE HAVE MONEY, AGAIN, IN THE NEW PACKAGE TO MAKE EVERYBODY WHOLE.
SO THAT MEANS IF YOU HAVE RECEIVED A PPP WHEN YOU APPLY FOR THE FORGIVENESS, MONEY WAS TAKEN OUT BECAUSE YOU HAD RECEIVED A GRANT.
THE BANK WILL MAKE YOU WHOLE, YOU WILL BE RECEIVING THAT MONEY IN YOUR ACCOUNT.
AND BY WAY OF EXAMPLE, 20,000, THEY ARE TAKING 2,000, YOU GOT 18,000, FORGIVENESS, YOU WILL BE GETTING YOUR $2,000 DIFFERENCE.
AND THAT IS FOR EVERYBODY WHO HAVE REQUESTED FORGIVENESS AND REALIZE THAT MONEY WAS TAKEN OUT OF THE AMOUNT THAT WITH TAKEN.
SO THAT WAS THE SECOND THING ON THE IDEA.
THE THIRD THING ON THE IDEA IS -- THE PROGRAM EXPIRED IN DECEMBERÂ 31ST, 2020.
THE PROGRAM HAS BEEN EXTENDED TO DECEMBERÂ 31ST, 2021.
IT MEANS FOR FOLKS WHO HAVE NOT APPLIED, WHICH WOULD BE WEIRD TO ME THAT PEOPLE WOULD HAVE WAITED SO LONG TO APPLY, BUT NEVERTHELESS, THE PROGRAM IS STILL OPEN FOR THOSE WHO HAVE NOT APPLIED PREVIOUSLY, THEY CA GO BACK TO THE PORTAL, THE SAME, YOU GO STRAIGHT TO THE PORTAL AND YOU ENTER THE INFORMATION, AND UNFORTUNATELY THERE IS NO ADVANCE ON THIS.
FOR THOSE WHO ARE RECEIVING EDIL AND SBA RAN OUT OF MONEY, YOU WILL NOT BE
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RECEIVING AN ADVANCE, YOU'RE NOT GETTING AN ADVANCE EITHER.THE ONLY ONES WHO BENEFIT FROM ARE THE ADVANCE ARE THOSE THAT RECEIVED THE ADVANCE AND HAVE THE PPP LOAN.
>> REAL QUICK ON THAT, SO I'M CLEAR AND I JOTTED DOWN STUFF AND I KIND OF TRIED TO LOOK AT SOME OF THIS STUFF EARLIER, JUST TO CLARIFY, SO THE EDIL, IF YOU PREVIOUSLY APPLIED AND YOU DID NOT RECEIVE THE INITIAL -- WHAT WAS ORIGINALLY LISTED AS A $10,000 ADVANCE AND BECAUSE IF YOU WERE LESS THAN 10 EMPLOYEES YOU RECEIVED 5,000, RIGHT, SO YOU'RE SAYING THEY WILL MAKE UP THE DIFFERENCE BETWEEN THE 5 AND THE 10?
>> PROVIDED THAT THE COMPANY IS LOCATED IN WHAT'S THIS SO-CALLED TARGETED AREA.
>> WHICH HASN'T BEEN DEFINE THE YET, RIGHT?
>> BUT YOU ALSO MENTIONED WHAT THE PPP, IF YOU APPLY FOR PPP, THAT WON'T BE THE CASE, OR WILL THAT IMPACT YOU'RE GETTING THAT, IS THAT WHAT YOU'RE SAYING?
>> SO ON THE FIRST DRAW, THE FIRST TIME APPLICANT, ON THE APPLICATION, IT WOULD SAY THE AMOUNT OF THE LOAN AND THEY ARE GOING TO DEDUCT THE ADVANCE, IF YOU ARE RECEIVING A LOAN, EDIL LOAN AND RECEIVED AN ADVANCE UP FRONT, AND YOU APPLY FOR THE PPP, THEY WOULD DEDUCT THE ADVANCE FROM THE TOTAL AMOUNT THAT YOU ARE SEEKING.
SO LET'S SAY IN YOUR FORMULA, YOU'RE SUPPOSED TO BE GETTING $30,000.
AND THAT'S WHAT YOU EXPECT TO BE FORGIVEN, SO YOU GO TO THE BANK, PRESENT YOUR DOCUMENTS, 100% FORGIVENESS.
YOU ARE SUPPOSED TO KNOW THAT $30,000 WOULD BE FOR GIVEN, YOU DON'T HAVE TO REPAY IT.
UNFORTUNATELY WHAT WOULD HAVE HAPPENED, IN MY EXAMPLE, IF YOU HAD AN ADVANCE OF SAY $5,000, THAT WOULD HAVE BEEN DEDUCTED FROM THE AMOUNT YOU ARE RECEIVING.
SO WHAT HAPPENED IF YOU ARE TO APPLY FOR AN EDIL AND YOU DIDN'T RECEIVE ANY ADVANCE BECAUSE WE ARE OUT OF MONEY, YOU'RE NOT GOING TO GET IT NOW.
I RECEIVE SOMETHING AND WHO ARE IN A TARGETED AREA AND THEY ARE GOING TO MAKE GOOD, THEY ARE GOING TO MAKE THEM WHOLE.
SO, AGAIN, YOU CAN NOT APPLY A SECOND TIME FOR EDIL UNFORTUNATELY, BUT YOU CAN APPLY FOR AN INCREASE, THAT'S NOT UNUSUAL, WE HAVE SEEN MANY PEOPLE COME IN AND SAY WHAT DO I HAVE TO DO TO REQUEST AN INCREASE.
LET'S SAY YOU HAVE GOT $90,000 AND YOU REALIZE, OH, MY GOD, I RAN OUT OF MONEY, I THINK I CAN TAKE $60,000, BECAUSE THE MAXIMUM YOU COULD HAVE GOTTEN IS 150, YOU REALIZE THAT GEE, I CAN NOT REAPPLY FOR MORE, BUT IF I CAN GET AN INCREASE WHY NOT APPLY.
WE HAVE SEEN PEOPLE COME INTO US AND SAY HOW DO I REQUEST AN INCREASE.
>> SO YOU CAN APPLY -- IF YOU WERE APPROVED FOR X AMOUNT AND YOU ONLY RECEIVED 60% OF THAT, YOU COULD APPLY FOR THE REMAINING 40% AS AN INCREASE?
>> THAT'S CORRECT, THAT'S CORRECT.
THE MAXIMUM YOU COULD HAVE RECEIVED, SOME PEOPLE COULD HAVE RECEIVED THE AMOUNT OF 150 ALREADY.
SO THEY CAN NOT APPLY FOR AN INCREASE.
BUT IF YOU ARE TO RECEIVE, SAY, 100,000, THEN YOU REALIZE I COULD HAVE A LITTLE BIT MORE MONEY.
YOU CAN APPLY FOR AN INCREASE FOR THE DIFFERENCE.
PROVIDED THAT YOU CAN SUBSTANTIATE THE NEEDS.
SO THERE IS A NEED AND THAT'S WHY YOU'RE REQUESTING IT.
IT IS REALLY A REQUEST FOR YOUR CONSIDERATION AND PRESENTING THE RIGHT DOCUMENTATION TO PROVE THAT, YOU KNOW, THIS IS THE BUSINESS YOU'RE IN, AND THEY PROVIDED YOU WITH FUNDS FOR SIX MONTHS, WORKING CAPITAL, BUT IT IS NOT CERTAIN WHETHER YOU CAN GET MORE MONEY.
>> LET'S GO TO THE PPP NOW, WHICH IS GOOD NEWS.
WE HAVE BEEN WAITING FOR THIS ORDER OF PPP, AS YOU KNOW, RECEIVING $286Â BILLION ON THE SECOND TIME AROUND.
SO IF SOMEONE HAD APPLIED THE FIRST TIME, YOU CAN NOW APPLY THE SECOND TIME.
SO THE PROGRAM STARTED THE 11TH.
THE PROGRAM STARTED LAST WEEK.
THE MINORITY GROUPS ONLY THE WOMEN AND VETERANS COULD HAVE APPLIED WITH A CDFI.
SO THE SBA TOOK THAT POSITION BECAUSE THEY RECOGNIZE THAT THE LAST
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TIME AROUND IT WAS REALLY HARD FOR THE GROUP TO GET ADVANCING, BECAUSE A LOT OF THE BANKS WERE GIVEN PRIORITIES TO THEIR TOP CUSTOMERS.SO IF WE CAN ONLY THE PROGRAM JUST FOR THOSE GROUPS, SO MONDAY, TUESDAY WAS FOR THE FIRST DRAW.
PEOPLE WHO WERE DOING IT THE FIRST TIME.
LAST WEDNESDAY FOR FOLKS ON THE SECOND DRAW.
SOME PEOPLE ARE CALLING US, AS YOU KNOW WHEN YOU HAVE TWO HERE, RELIEF FUND, IT DOESN'T MEAN THAT IF YOU KNEW OF A CITY IN LOUISIANA THAT COULD NOT APPLIED WITH THEM.
BUT DURING THAT WEEK, IT HAS BEEN ABOUT 80,000 LOANS IN THE ORGANIZATION THE FIRST TIME AROUND.
WHEN THE PROGRAM OPENS UP ON MONDAY FOR EVERYBODY AND EVERY LENDING INSTITUTION.
A COUPLE OF CHANGES TO THE PROGRAM.
ONE IS YOU CAN ONLY APPLY FOR UP TO $2Â MILLION.
THE INTEREST RATE IS STILL 1%, YOU KNOW, IF YOU GO FORGIVENESS AND YOU DON'T HAVE 100% FORGIVENESS, YOU MAY HAVE A DEBT THAT WOULD BE A 1 PERCENT INTEREST RATE AND FIVE YEARS REPAYMENT TERMS. IDEALLY, YOU WANT TO FORGIVE EVERY SINGLE PENNY THAT WAS PROVIDED AND GIVEN TO YOU.
>> WHAT WOULD PREVENT YOU -- AND I DON'T MEAN TO JUST INTERRUPT.
>> NO, YOU SHOULD, YOU SHOULD.
>> WHAT WOULD PREVENT SOMEONE FROM -- OR A BUSINESS FROM GETTING SOMETHING, GETTING THAT LOAN FORGIVEN? I KNOW THERE WERE CERTAIN RESTRICTIONS EARLY ON, RIGHT, THAT HAD TO ONLY GO TO PAYROLL BUT THEN THAT EXPANDED TO THE OPERATIONS AND SO WHAT IS -- WHAT WOULD TODAY PREVENT A BUSINESS FROM GETTING THAT FORGIVEN?
>> AS LONG AS IT IS -- A LOT OF PEOPLE MISUSE THE FUNDS.
BUT IF YOU FOLLOW THE FORMULA.
RIGHT NOW THE PROGRAM IS UNDER THE FIRST MONEY WE HAD BEFORE THE LAPSE WAS 75/25 THE FORMULA.
AND YOU HAD EIGHT WEEKS TO SPEND THE MONEY.
SO LET'S SAY YOU USE 75% FOR PAYROLL AND 25% FOR THE OTHER COSTS THAT WE JUST SPOKE ABOUT, YOU COULD HAVE EASILY GIVEN THAT IN 100% FORGIVENESS.
LET'S SAY THE NEW 75% WHICH IS A REQUIREMENT, THAT BECOMES AN ISSUE.
BECAUSE THAT'S WHY THE PROGRAM HAD TO CHANGE FROM 75/25, THEY SAID THIS WOULDN'T WORK FOR THEM.
THEY NEED A LOT OF MONEY TO PAY THEIR RENT, THEIR LEASE, AND THAT SORT OF THING, THEIR EXPENSES, MORE THAN PAYROLL, SO IT WAS CHANGED TO 60/40.
SO THAT'S A VERY IMPORTANT FORMULA IN THAT IF YOU LOSE LESS THAN 60%, YOU COULD POTENTIALLY NOT BE ABLE TO FORGIVE THAT LOAN, BECAUSE REMEMBER, BY DEFINITION, THE PROGRAM WAS DESIGNED FOR PAYROLL PURPOSES, PAYCHECK PROTECTION PROGRAM.
SO IT IS IN THE BEST INTEREST, I SAY TO FOLKS, APPLY FOR BOTH.
ONE FOR PAYROLL, 100% AND THEN THE WORKING CAPITAL UNDER THE EDIL TO PAY OTHER EXPENSES.
UNDER THE PPP, THAT 60/40 ONLY GIVES YOU 40% AND EIGHT WEEKS, IF YOU SPEND THE MONEY OVER 20 WEEKS PERIOD BUT THE AMOUNT OF MONEY DOES NOT CHANGE.
WHEREAS UNDER EDIL, YOU GET SIX MONTHS OF WORKING CAPITAL IN YOUR HANDS.
NOW IT IS BACK TO 60/40, YOU WANT TO MAKE SURE THAT YOU SPEND ON PAYROLL 60%.
YESTERDAY, A COMPANY CALLED ME AND SAID I'M A NOT FOR PROFIT, I DON'T HAVE PAYROLL, BUT I HAVE EXPENSES, CAN I USE THE FUNDS? I SAID UNFORTUNATELY, YOU CAN NOT.
YOU HAVE TO SPEND 60% FOR PAYROLL AT THE MINIMUM.
AND THE 40% COVERS EVERYTHING ELSE, WHICH IS YOUR RENT, YOUR MORTGAGE, INTEREST, YOUR LEASE, IF YOU HAVE ONE, YOUR LIGHT BILL, EVERYTHING ELSE.
>> IT HAS GOT TO BE DIRECTLY TIED TO OPERATIONS?
IT HAS GOT TO BE TIED TO OPERATIONS, YES.
>> SO 60/40 IS STILL REMAINING TOOTED?
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>> 60/40 REMAINS TODAY AND THERE'S A VALUATION, IF YOU REMEMBER, THE FIRST TIME IT CAME, THEY WERE GIVEN YOU MONEY FOR EIGHT WEEKS, THAT'S WHERE THE 2.5 CAME OUT WHEN YOU HAVE MULTIPLY ANYTHING COME, AVERAGE TIMES, 2.5.
WE'RE GOING TO GIVE YOU MONEY FOR EIGHT WEEKS, FOR YOUR PAYROLL, TO COVER OTHER COSTS, 75/25.
THEN THEY CHANGE IT TO 60/40 BECAUSE OF THE COMPLIANCE OF THE ACCOMMODATION INDUSTRY, NEED MORE MONEY FOR OTHER THINGS, IF YOU HAVE A HOTEL, YOU HAVE A HUGE MORTGAGE, YOU NEED MONEY FOR THAT, THEY DECREASE IT TO 60/40.
NOW WE ARE BACK TO 60/40 AND IT IS NO LONGER LIMITED.
THE FIRST TIME AROUND IT WAS EIGHT WEEKS, THEN THE SECOND TIME WAS EIGHT WEEKS OR 24 WEEKS.
IT IS BETWEEN EIGHT WEEKS AND 24 WEEKS, SO YOU JUST DON'T SPEND THE MONEY IN 12 WEEKS AND AFTER 12 WEEKS YOU GO TO THE BANK FOR FORGIVENESS, PERFECT.
YOU SPEND FOR EIGHT WEEKS, TRYING TO CARRY IT OVER FOR 24 WEEKS, THE AMOUNT OF MONEY IS THE SAME, SO I BET THE MONEY WOULD PROBABLY BE GONE BY EIGHT WEEKS ANYWAY.
BUT THERE IS SOME FLEXIBILITY NOW.
THEY HAVE A GROUP, IT IS THE TITLE 166, HAS BEEN ADDED TO THE GROUP.
THAT WAS ONE OF THE QUESTIONS WE ASKED YOU EARLY ON, TOO, IN THAT.
LET ME ASK YOU ONE OTHER QUESTION.
>> REGARDING WHAT YOU JUST TALKED ABOUT RIGHT NOW WITH THE PPP.
SO YOU MENTIONED TODAY THERE IS NO EIGHT WEEK OR 24-WEEK REQUIREMENT THAT YOU HAVE TO USE THE FUNDS SO GOING BACK TO THE ONES THAT HAVE APPLIED FOR IT PREVIOUSLY, DOES THAT APPLY TO THEN? ARE THEY APPLIED WHEN IT WAS EIGHT WEEKS REQUIREMENT OR 24? DO THEY GET -- DOES THAT GET -- DOES THAT APPLY TO THEM AS WELL OR DOES THAT ONLY APPLY FOR PEOPLE APPLYING GOING FORWARD?
IF YOU REMEMBER, 24 WEEKS, AND THEY CAME OUT AND SAYS EVERYBODY HAS THE OPTION OF 24 WEEKS, IF THEY WANT IT.
EIGHT WEEKS, YOU WOULD HAVE TO GO BACK TO YOUR BANK AND I'M GOING TO THE MONEY FOR 20 WEEKS INSTEAD, YOU HAD THAT OPTION, IF YOU HAD APPLIED THE SECOND TIME, WE GOT SOME MONEY, AND YOU WERE TOLD THE FIRST TIME YOU GOT TO USE IT FOR EIGHT WEEKS, NOW YOU CAN GO BACK TO THE BANK AND SAY AHA, I WOULD PREFER TO USE IT IN 24 WEEKS.
>> YEAH, ONLY 24, OR EIGHT WEEKS IF YOU APPLIED EARLIER, AND IF YOU CHOSE A POTENTIAL 24, YOU COULD HAVE DONE THAT.
BUT NOW IT IS BETWEEN 8 AND 24.
IT DOES NOT HAVE TO BE 8, IT DOES NOT HAVE TO BE 24, IT COULD BE 12, IT COULD BE 16, SO THERE IS SOME FLEXIBILITY NOW.
YOU JUST MENTIONED A COUPLE OF THINGS, AND MAYBE I MISUNDERSTOOD.
YOU MENTIONED -- EARLIER YOU SAID IF YOU APPLY FOR THE PPP BEFORE, YOU CAN NOT APPLY AGAIN; IS THAT CORRECT?
>> IF YOU APPLIED FOR THE PPP BEFORE, IF YOU APPLY FOR THE EDIL BEFORE, YOU CAN NOT APPLY AGAIN.
ON THE OTHER HAND, PPP, THAT'S THE WHOLE REASON BEHIND IT TO ALLOW FOLKS WHO HAVE APPLIED BEFORE TO APPLY AGAIN.
YOU CAN APPLY AGAIN IF YOU HAD APPLIED THE FIRST TIME AND IF YOU HAD NOT APPLIED THE FIRST TIME, YOU CAN NOW APPLY.
THE SECOND TIME AROUND IF YOU GOT MONEY THE FIRST TIME AND YOU WANT TO APPLY AGAIN, THE PROGRAM IS DESIGNED FOR THAT, FOR FOLKS TO GO BACK TO THEIR BANK AND APPLY.
>> THERE'S SOME DOCUMENTATION, IF YOU ARE APPLYING THE FIRST TIME, THE APPLICATION YOU NEED TO FILL OUT AND, AGAIN, IT IS AN SBA APPLICATION, I THINK THE BANK WILL ACCEPT IT, THE BANK WILL ASK YOU TO FILL OUT THEIR OWN, BUT YOU NEED TO GO ON THE SITE AND IF YOU'RE APPLYING THE IF VERY FIRST TIME, THE APPLICATION NUMBER FOR EVERYBODY'S 24832482E AND YOU CAN PULL IT OUT OF THE SBA WEBSITE SBA.GOV/PPP, YOU SCROLL AND YOU'LL SEE THAT APPLICATION.
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2483, THOSE WERE APPLYING THE VERY, VERY FIRST TIME.THEY MISSED THE LAST TIME, THEY CAN USE THAT FORM.
FOR THOSE WHO ARE APPLYING THE SECOND TIME, THE FORM THEY ARE GOING TO BE LOOKING FOR IT IS 2483SD SECOND DRAW.
THE FIRST TIME AROUND, YOU GOT TO USE THE 2483, THE SECOND TIME YOU USE THE 2483SD.
THESE APPLICATIONS CAN BE FUND ON THE SBA SITE, SBA.GOV/PPP.
>> DO THEY LIST -- AS THEY SAY FIRST TIME APPLICANTS CLICK HERE -- >> NO, WHAT IT SAYS IS THE FIRST DRAW.
TO APPLY FIRST DRAW AND YOU WILL SEE THE APPLICATION, WAYS, HOW TO APPLY.
>> AND THEN AT THE BOTTOM IT SAYS SECOND DRAW APPLICATION AND YOU GO DOWN AND YOU SEE THE SECOND DRAW APPLICATION.
AND AGAIN, IT IS A BANK LOAN, MANY FOLKS ARE SENDING THEIR APPLICATION HERE TO THE SBA, MANY PEOPLE ARE CALLING OUT OF FRUSTRATION, ESPECIALLY THOSE APPLYING FOR THE FIRST TIME, WE CAN NOT SUBMIT IT, WE WERE ABLE TO DO THAT WITH THE EDIL AND YOU NEED TO EXPLAIN THAT THE EDIL IS TRULY MANAGED BY THE DISASTER CENTER.
WHEREAS THE PPP, IS THE BANK PROGRAM.
SO ONCE YOU FILL OUT THAT APPLICATION, YOU DOWNLOAD THE APPLICATION, YOU MAKE A COPY.
THE BANK WILL MAKE THE LOAN TO YOU.
THE SBA PROVIDES 100% GUARANTEE BEHIND IT.
FOLKS APPLYING FOR THE SECOND DRAW, IT IS NOT LIKE YOU HAVE TO GO TO THE SAME BANK.
BUT IT DOES MAKE SENSE TO GO TO THE SAME BANK.
I DON'T KNOW WHY YOU WOULD WANT TO DO THAT, AGAIN, PEOPLE HAVE THEIR REASONS.
ON THE APPLICATION FOR THE SECOND DRAW, THEY WILL ASK YOU THE APPLICATION NUMBER FOR THE FIRST DRAW.
SO IF SOMEONE -- IF SOMEONE DOESN'T HAVE THE APPLICATION NUMBER, I MEAN, THEY WOULD HAVE TO HAVE IT BECAUSE THEIR BANK IS REQUESTED ON THAT APPLICATION.
WE'RE GETTING CALLS, YOU KNOW, I DON'T HAVE MY APPLICATION NUMBER.
YES, WE CAN FIND IT, BUT IT IS EASIER TO GO TO THE BANK WHERE YOU HAVE YOUR BUSINESS, WHERE YOU HAVE APPLIED THE FIRST TIME, THEY HAVE YOUR APPLICATIONS FOR SURE, AND THEY CAN TRY TO GET THE NUMBER THAT YOU HAVE TO PUT ON THE SECOND DRAW APPLICATION.
>> IS SECOND DRAW CONSIDERED A SEPARATE INDEPENDENT TRANSACTION CONSIDERED ON ITS OWN? JUST LIKE THE FIRST ONE? OR IS IT CONSIDERED AS PART OF THE FIRST ONE?
THERE IS -- THERE LIES THE RELATIONSHIP BETWEEN THE TWO.
SOMEONE GOT IN A LOAN THE FIRST TIME AROUND, THEY HAVE NEVER GONE BACK TO THE BANK YET FOR A FORGIVENESS.
THERE IS AN ASSUMPTION THAT THE MONEY HAS NOT BEEN SPENT.
SO THEY ARE GOING TO HAVE A HARD TIME GETTING THE SECOND DRAW.
OBVIOUSLY THEY HAVE MONEY, AFTER 24 WEEKS OR WHATEVER IT WAS.
THEY STILL HAVE NOT GOTTEN THE MONEY.
ON THE OTHER HAND, IF YOU HAVE GOTTEN YOUR DOCUMENTATIONS TO THE BANK, THE BANK WOULD HAVE SENT IT TO THE SBA.
THE SBA WOULD TAKE 90 DAYS TO EVEN LOOK AT IT, YOU'RE ABLE TO SAY, I HAVE SUBMITTED MY DOCUMENTATION, I HAVE NOT RECEIVED THE FORGIVENESS YET, BUT I HAVE.
SO IT IS VERY IMPORTANT FOR FOLKS TO EXPEDITE THEIR DOCUMENTATION, BECAUSE I HAVE TALKED TO PEOPLE WHO SAY I HAVE NOT MADE THAT REQUEST YET, I DON'T HAVE THE TIME.
SO MY RESPONSE IS, THE SBA'S POSITION IS YOU STILL HAVE THE MONEY.
YOU'RE STILL SPENDING THE MONEY, YOU DON'T NEED NEW MONEY, BECAUSE YOU NEVER WENT FOR FORGIVENESS, SO THAT'S VERY IMPORTANT.
PUT YOUR DOCUMENTATION INTO THE BANK BEFORE YOU PUT IN THE APPLICATION, BECAUSE THAT QUESTION WILL COME UP.
HOW IS IT THAT WE HAVE NOT FORGIVEN THAT LOAN YET AND THEN WE'RE SEEING A SECOND APPLICATION, THERE WILL BE QUESTIONS.
YOU'RE NOT GOING TO BE APPROVED IF YOU HAVEN'T SUBMITTED AND RECEIVED YOUR FORGIVENESS?
YOU ARE NOT TO RECEIVE IT, UNLESS YOU PUT IN THE DOCUMENTATION WITH YOUR
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BANK.>> BECAUSE THE TIME YOU TAKE IT TO THE BANK, THE SBA HAS 30 DAYS, THE SBA HAS 30 DAYS TO RESPOND TO THE BANK.
IT IS A LONG TIME, YOU MAY NOT HAVE RECEIVED THAT FORGIVENESS YET.
THE SBA IS ONLY UP TO MILLION, EIGHT, WHEN WE MADE 5.2Â MILLION APPLICATIONS.
SO ONCE WE CAN SUBSTANTIATE THAT THE APPLICATION HAS BEEN GIVEN TO THE BANK, FIVE DAYS AGO, 20 DAYS AGO, A MONTH AGO, THEN WE CAN APPLY.
IF WE ARE SAYING, WELL, DON'T REALLY HAVE THE TIME TO PREPARE THE DOCUMENTATION, I HAVEN'T DONE IT YET.
YOU BETTER WANT DO IT NOW, OTHERWISE YOU'RE NOT GOING TO BE APPROVED FOR A SECOND DRAW.
THE ASSUMPTION BEING YOU STILL HAVE MONEY.
>> SO, AGAIN, IT IS A LITTLE BIT LESS MONEY THAN BEFORE, BUT NOT MUCH HAS CHANGED.
BUT IT IS AN OPPORTUNITY FOR FOLKS TO APPLY.
ALL OF THE BANKS, THEY HAVE BEEN CALLING SBA NATIONAL FOR WEEKS SAYING THAT I AM READY TO GO.
SOMEBODY CALLED ME YESTERDAY AND SAID I WENT TO WELLS FARGO AND THEY SAID THEY ARE NOT MAKING THOSE LOANS, BUT MOST LENDING INSTITUTIONS WOULD BE TALKING TO BANKS, WOULD BE TALKING TO BANKS, ASKING THE FOLLOWING QUESTION, WILL YOU CONSIDER HELPING A SMALL BUSINESS THAT DOESN'T HAVE AN ACCOUNT WITH YOU.
SO, SO FAR, WE HAVE SMALL BANKS WHO SAY ABSOLUTELY, I WILL MAKE A LOAN TO ANYBODY WHO WALKS THROUGH MY DOOR.
AS YOU KNOW, A LOT OF THE BANKS, IT WOULD ONLY WORK WITH FOLKS, THEY HAVE EITHER A CREDIT RELATIONSHIP OR A DEBIT RELATIONSHIP.
WE HAVE ONE BANK WHO SAYS I MADE A LOT OF LOANS TO FOLKS WHO DO NOT HAVE AN ACCOUNT WITH US, IF THEY WANT TO COME BACK, WE WILL HELP THEM, BUT WE WILL NOT TAKE NEW ACCOUNTS, NEW CLIENTS.
>> SO THE SMALL BUSINESS IN THAT RESPECT.
>> YOU HAVE A LIST ON YOUR WEBSITE, THE FIRST PROGRAM, BECAUSE THERE WERE ONLY CERTAIN BANKS, I GUESS, THE ORIGINAL LENDERS OF THE PROGRAM, AND THEN EXPANDED TO NONTRADITIONAL LENDERS; IS THAT STILL THE CASE?
CDFIS, SBA WILL PROBABLY PROVIDE THEM WITH MORE FUNDS SO THEY CAN MAKE A LOT OF SMALLER FUNDS FOR US.
MOST OF THE BANKS SAYS WE ARE READY, WE ARE OPEN TO ACCEPT APPLICATIONS.
>> AND YOU STILL HAVE THAT LIST AVAILABLE ON YOUR WEBSITE?
YOU KNOW, YOU CAN IDENTIFY THE AREA WHERE YOU ARE LOCATED AND YOU CAN SEE A COUPLE OF COMPANIES.
BUT PEOPLE CAN FEEL FREE TO CALL SOMEBODY, BANK OF AMERICA, NOT REALLY, BUT I CAN SEND A SHORT LIST THAT WE HAVE.
A BANK SAYING TO US WE WILL WORK WITH ANYBODY, WHETHER THEY HAVE AN ACCOUNT OR NOT.
>> AND THEN THE NEXT STEP WOULD BE, YOU KNOW, ONCE YOU GET YOUR MONEY, HOPEFULLY AGAIN, IT IS UP TO 2 MILLION.
ONCE YOU GET YOUR MONEY, YOU GO BACK AND YOU START THE PROCESS AGAIN OF FORGIVENESS, NOTHING HAS CHANGED ON THAT FRONT.
IF YOU RECEIVED 50,000 OR LESS.
SMALL BUSINESS DEVELOPMENT CENTERS ARE VARIABLE.
THEY HAVE RECEIVED SOME MONEY, YOU KNOW TO BE ABLE TO HAVE THE CLIENTS WHO FEEL THAT THEY NEED HELP.
I DO TELL PEOPLE AROUND US, ESPECIALLY IF IT IS VERY COMPLEX, YOU KNOW, MAYBE, THE ACCOUNTANTS CAN HELP YOU OUT.
IT IS ONE OF THE THINGS THE SBA DOESN'T WANT TO DO IS GIVE THE WRONG INFORMATION TO THE CLIENT.
WE WOULD PREFER THAT YOU USE THE ACCOUNTANT THAT YOU HAVE AND THE BOOKKEEPER TO WORK ON THE NUMBERS, TO MAKE SURE YOUR FORMULA FITS IN THAT 60/40%.
SO YOU CAN GET YOUR FORGIVENESS BACK.
>> ON TECHNICAL SIDE OF SUPPORT?
THEY ARE ACTUALLY RELEASING SOME ADDITIONAL FUNDS JUST TO BE ABLE TO HELP CLIENTS WHO NEED HELP.
BECAUSE WE DO GET CALLS QUITE OFTEN FROM PEOPLE WHO SAY CAN YOU HELP ME FILL OUT THE APPLICATION? WE CAN ANSWER THOSE BASIC QUESTIONS.
BUT WHEN IT COMES ESPECIALLY TO FORGIVENESS PIECE, I THINK THAT'S THE
[00:35:01]
IMPORTANT PIECE, WE CAN'T AFFORD TO MAKE A MISTAKE FOR THE CLIENT, WE HAVE BEEN SAYING GO TO THE SBACS.I RECOMMENDED ONE YESTERDAY TO A CLIENT.
I DON'T KNOW IF THEY ARE DOING IT THERE OR IN PERSON, BUT THEY ARE AVAILABLE TO HELP CLIENTS WITH APPLICATIONS.
>> FOR ANYONE WHO DOESN'T KNOW WHAT AN SBC IS -- >> SORRY.
SMALL BUSINESS CENTERS AND ACTUALLY THE MAIN OFFICE IS ACTUALLY PART OF DALLAS COLLEGE, IS IN DALLAS COLLEGE.
>> RIGHT WHERE YOU ARE, RIGHT.
THEY ARE GREAT FOR FINANCE FOLKS WHO CAN HELP.
>> NOW, I GUESS WE CAN -- THE OTHER THING THAT IS IMPORTANT.
IF ARE IN THE ACCOMMODATION BUSINESS, IF YOU ARE A RESTAURANT THAT HAS SUFFERED DURING THE PANDEMIC, THE HOTEL INDUSTRY, STARTING 72, WHEN YOU'RE DOING YOUR FORMULA, IT IS NOT 2.5, IT IS 3.5.
SO WHERE ON THE APPLICATION, THEY ARE ASKING YOU YOUR AVERAGE MONTHLY PAYROLL TIMES 2.5 IS FOR EVERYBODY.
FOR THE FOLKS WHO HAVE IT STARTING WITH 72.
ALL OF THE RESTAURANTS, ALL OF THE HOTELS.
SO YOU ARE ACTUALLY GETTING MANAGER MORE MONEY THAN EVERYBODY ELSE.
AND HOW DO YOU KNOW IF YOU QUALIFY AS HOSPITALITY?
SO THEY WOULD BE ASKING YOU ON THE APPLICATION YOUR CODE.
IF IT STARTS WITH 72, YOU'RE GOOD, IT IS 3.5.
>> AND THE OTHER THING I SHOULD TALK ABOUT IS FOR THE SECOND DRAW, FOR THE SECOND DRAW, IT IS ACTUALLY FOR FOLKS WHO CAN DEMONSTRATE THAT THEY HAVE A REDUCTION IN THEIR REVENUE AND THAT'S VERY, VERY IMPORTANT, I ALMOST MISSED THAT BEFORE YOU WILL BE ABLE TO APPLY FOR A SECOND DRAW, YOU MUST BE ABLE TO DEMONSTRATE THAT YOU HAVE HAD -- YOUR EXPERIENCE, A REDUCTION IN YOUR GROSS REVENUE FOR TWO CONSECUTIVE QUARTERS.
>> FOR EXAMPLE, YOU WANT TO TAKE QUARTER ONE AND QUARTER TWO, 1920.
LET'S SAY IN 19 YOU HAD A GOOD YEAR.
AS A RESULT OF THE PANDEMIC, THAT WAS SECOND QUARTER 2019 AND NOW LOOKING AT YOUR SECOND QUARTER 2020, THAT'S WHEN THE PANDEMIC, YOU CAN SHOW THAT YOU HAVE HAD A REDUCTION OF 25% OR MORE, ONLY THEN CAN YOU APPLY.
SO TO GIVE YOU AN EXAMPLE, I HAVE SPOKEN TO A BUSINESS YESTERDAY WHO SAID TO ME, MY BUSINESS HAS DONE VERY WELL DURING THE PANDEMIC BECAUSE OF THE NATURE OF MY BUSINESS.
IF YOU CAN NOT SHOW THAT YOU ACTUALLY HAD A REDUCTION OF 25% OR MORE, YOU ARE INELIGIBLE.
THE BANK WILL ASK YOU THAT INFORMATION AHEAD OF TIME, AND IF YOU ARE APPLYING FOR 150,000 OR LESS, THE BANK WILL EVENTUALLY ASK YOU THAT AT THE TIME OF FORGIVENESS.
YOU ARE BETTER OFF PROVIDING THAT INFORMATION UP FRONT TO THE BANK.
REMEMBER, IT IS A COMPARATIVE QUARTER.
YOU DON'T WANT TO LOOK AT QUARTER ONE IN 2019, AND QUARTER 3 IN 2020.
IT HAS GOT TO BE QUARTER ONE, QUARTER ONE, QUARTER TWO, QUARTER TWO.
AND I'M SURE A LOT OF THE BUSINESSES HAVE SUFFERED A LOT MORE THAN 25% DURING 2020.
>> IS THAT FOR -- IS THAT FOR EVERYBODY APPLIES FOR A FIRST DRAW, SECOND DRAW, OR IT DOESN'T MATTER?
>> IF YOU'RE APPLYING THE FIRST TIME, IT DOESN'T MATTER.
IF YOU'RE APPLYING YOUR SECOND TIME, YOU MUST BE ABLE TO SAY, WELL, HERE IS THE STORY, BECAUSE A LOT OF BUSINESSES SEEM TO HAVE DONE NOT SO BAD AT ALL
[00:40:05]
DURING THE PANDEMIC, YOU KNOW, A LOT OF THEM HAVE CHOSEN TO DO SOMETHING ELSE.THEY HAVE PIVOTED AND SORT OF DOING WELL, AND SO IT IS NOT FOR THEM UNFORTUNATELY THE SECOND DRAW.
THE FIRST DRAW THAT DOES APPLY, THE FIRST DRAW.
>> AND AGAIN, VERY IMPORTANT IF YOU HAVE AN SBA LOAN, YOU WILL PROBABLY GETTING DEBT RELIEF AGAIN.
YOU WE HAVE PAID SIX MONTHS THE FIRST TIME AROUND FOR BUSINESSES THAT HAVE GOTTEN SBA LOAN, WE HAVE PAID PRINCIPAL AND INTEREST, AND I THINK BE THAT'S GOING TO COME BACK AGAIN.
SO I THINK IF YOU HAD A LOAN THAT WAS APPROVED BEFORE SEPTEMBER, END OF SEPTEMBERÂ 27, 2020, YOU'LL BE ELIGIBLE FOR SIX MONTHS OF FORGIVENESS AGAIN.
SO BUT IT HAS GOT TO BE AN SBA LOAN.
YOU HAVE AN SBA LOAN, WE PAY SIX MONTHS ALREADY.
YOU NEVER REALLY CAN CATCH UP.
YOU'RE NOT IN LIQUIDATION, BECAUSE WE'RE NOT GOING TO HELP YOU.
YOU HAVE BEEN IN DEFERMENT WITH YOUR BANK AND WE WANT TO HELP FOR SIX MONTHS AND I THINK STARTING IN -- IS IT NEXT MONTH, FEBRUARY, YOU WILL BE ABLE, SBA WILL BE ABLE TO PAY THE NEXT SIX MONTHS FOR YOU AND, AGAIN, IT IS NOT VERY SPECIFIC WHETHER IT IS GOING TO BE SIX MONTHS.
YOU DON'T KNOW HOW MUCH MONEY WILL HAVE IT VARIABLE TO SUPPORT THAT IN APPLICATIONS, BUT RIGHT NOW, IT IS MORE OR LESS FOUR TO SIX MONTHS.
>> THERE'S A COUPLE OF QUESTIONS THAT WE HAVE HERE FOR YOU, AND FIRST, GOING BACK TO THE EDIL, AND I KNOW WE SORT OF -- WE TOUCHED ON THIS, AND WE COVERED A COUPLE OF QUESTIONS, BUT THERE'S ONE OF OUR PARTNERS MENTIONED THAT THEY ONLY APPLIED FOR THE $10,000 GRANT.
AND ONLY RECEIVED 6,000 OF IT.
LET ME MAKE SURE I GOT THAT CORRECT INFORMATION HERE.
SO THEY ONLY RECEIVED 4,000 OF THAT AND THEY WERE TOLD THEY COULD APPLY FOR THE DIFFERENCE OF THE 6,000, SO YOU'RE SAYING THEY CAN OR THEY CAN'T DO THAT?
>> IF -- IF A PERSON HAD REQUESTED 10,000 AND, YOU KNOW, I'M HEARING THAT A LITTLE BIT, PEOPLE ARE SAYING, WELL, I DON'T NEED THE MONEY, I JUST NEED THE GRANT, THE PROGRAM WASN'T DESIGNED FOR THAT.
THE PROGRAM WAS DESIGNED TO PROVIDE WORKING CAPITAL MONEY FOR SIX MONTHS AND WE ARE WILLING TO GIVE YOU AN ADVANCE.
BUT A LOT OF PEOPLE WERE DENIED BUT STILL GET THEIR ADVANCE.
PEOPLE ARE SAYING I NEVER NEEDED THE MONEY, I JUST NEEDED THE ADVANCE TO GET MONEY, BECAUSE I UNDERSTOOD THAT TO BE A GRANT.
BUT THE PROGRAM WASN'T DESIGNED THAT WAY, I'M SURE PEOPLE ARE SAYING THAT, BUT IT CAN NOT BE TRUE, BECAUSE YOUR APPLICATION WHEN YOU FILL OUT IT WASN'T FOR LOAN APPLICATION, IT WAS FOR GRANT APPLICATION.
IF THEY SAY THEY ONLY APPLIED FOR THE GRANT, WHICH I DON'T UNDERSTAND IT.
THEY SAY THEY ONLY WANT AN ADVANCE, I HAVE SO MANY EMPLOYEES, I DON'T NEED A LOAN, THEY SAY YOU GET YOUR ADVANCE LONG BEFORE, BECAUSE TWO-PARTS OF MONEY.
WHEN YOU GOT TO AN OFFICER, THEY REALIZED, WAIT A MINUTE, YOU NEVER APPLIED FOR A LOAN.
BUT IF THE CASE IS, I APPLY FOR A LOAN, I DIDN'T GET THE LOAN, BECAUSE I WAS DENIED.
THEY CLAIMED THAT I WASN'T A CITIZEN, I DIDN'T HAVE MY GREEN CARD, BUT I GOT MY ADVANCE FOR 4,000, BUT I WANTED 10,000.
IF YOU ARE IN A TARGETED AREA, RIGHT NOW, SBA WILL BE DEPOSITING 6,000 FOR YOU.
SO THE QUESTION IS, IF THIS PERSON SAYS, I NEVER APPLIED FOR THE LOAN, I JUST SAID TO THE SBA ON MY APPLICATION, I JUST WANT GRANT MONEY, BECAUSE IT IS TWO SEPARATE PILES OF MONEY, THEY MIGHT HAVE GIVEN THE GRANT MONEY WITHOUT EVEN LOOKING AT THE APPLICATIONS FULLY.
I DON'T KNOW IF THAT HAPPENED AT TIMES.
I GET VERY FEW PEOPLE SAYING I NEVER WANTED A GRANT, I JUST WANTED $10,000, WHY WOULD I NEED MORE THAN $10,000.
BUT I HOPE IT IS CLEAR, I HOPE YOU UNDERSTAND WHAT I MEAN.
A LOT OF PEOPLE DIDN'T GET TURNED DOWN, DENIED FOR THE LOAN, MANY PEOPLE.
[00:45:06]
>> THIS IS A NONPROFIT, SIMILAR TO FOR INSTANCE LIKE US, WE APPLIED EARLY ON AFTER WE HAD THE FIRST TIME AND THAT WAS THE DISCUSSION THEN WAS THE $10,000 ADVANCE REGARDLESS IF YOU APPLIED, RIGHT? SO I KNOW THAT THEY APPLIED AS WELL DURING THAT TIME PERIOD AND THEN IF YOU ARE RECALL, RIGHT AFTER THAT, IT WASN'T THAT LONG AFTER THAT THE SBA CHANGED IT AND SAID BASED ON THE NUMBER OF EMPLOYEES, CORRECT? SO THEY GOT THE 4,000, INSTEAD OF THE 10,000 AND I GUESS, YOU KNOW THEY ARE LOOKING AT IT AND SAYING, WELL, WE COULD DEFINITELY USE THE DIFFERENCE BETWEEN THE TWO, THE 6,000.
>> IF THEY ARE IN THE TARGETED AREA.
>> SO IF THEY SERVE IN THE TARGETED AREA, LET'S SAY, FOR EXAMPLE, WE WORK AND SERVE HISTORICALLY UNDERUTILIZED, UNDERSERVED SEGMENT OF THE COMMUNITY AND THEY DO, TOO, AS WELL.
I KNOW YOU HAVE IT ISN'T DEFINED YET, THE TARGETED AREA.
FOR EXAMPLE, WHERE YOU ARE LOCATED AND THE PEOPLE THAT YOU SERVE, AS YOU SAID, IT MAY VERY WELL BE BASED ON THE ZIP CODE.
THEY MAY BE LOOKING AT HUB ZONES FOR EXAMPLE, THEY STILL HAVEN'T MADE THAT DECISION.
IN THE EXAMPLE GIVEN, IF THAT COMPANY, THAT ORGANIZATION IS LOCATED IN A TARGETED AREA, THEY WILL MAKE GOOD FOR THEIR 6,000.
THEY DON'T EVEN HAVE TO MAKE CALLS, THEY HAVE ALL OF THE INFORMATION THEY NEED TO MAKE THAT TRANSFER OF FUNDS.
>> THANK YOU FOR CLARIFYING THAT.
>> IS THERE A CONTACT -- OKAY.
SO YOU MENTIONED THAT SBC IS AVAILABLE TO SUPPORT AND BE THE TECHNICAL ASSISTANCE, DOES THE SBA SOURCE OUT ANY CONSULTANTS FOR -- TO WORK WITH BUSINESSES AS PART OF THIS PROGRAM OR ANY OF THESE PROGRAMS?
WE JUST USE OUR PARTNERS, THE RESOURCE PARTNERS THAT WE WORK WITH, THE WOMEN BUSINESS CENTER.
TOPICS THAT WE DON'T EVEN TOUCH ON.
SO AT THIS TIME THERE'S NO CONTRACT WITH ANYBODY?
NO CONTRACT WITH ANYBODY, JUST THESE ORGANIZATIONS, YEAH.
>> ONE OF OUR MEMBERS MENTIONED TO US THAT THEY -- THERE'S A BUSINESS THAT IS PART OF -- ONE OF THEIR FAMILY MEMBERS HAD -- SOMEBODY WAS ABLE TO APPLY FOR, IT SOUNDS LIKE THE EDIL USING THEIR SOCIAL SECURITY INFORMATION AND THEY RECEIVED SOME OF THE FUNDING, SO THEY COMMITTED FRAUD.
SOMEBODY COMMITTED FRAUD USING SOMEBODY ELSE'S IDENTITY, AND SO SOME MEMBERS HAVE LEARNED THAT THAT INFORMATION WAS USED FOR OTHERS TO GET LOANS UNDER THEIR BUSINESS NAMES DURING THAT FIRST ROUND.
WHAT DOES THE SBA HAVE IN PLACE IF YOU BECOME AWARE THAT SOMEBODY HAS USED YOUR IDENTITY, YOUR BUSINESS INFORMATION TO FRAUDULENTLY OBTAIN ONE OF THOSE LOANS, WHAT OPTIONS DO YOU HAVE? IS THERE SOME WAY YOU CAN REACH OUT TO THE SBA?
SO BY THE WAY, I'M GLAD THAT CAGE UP.
BECAUSE WE'RE TALKING ABOUT 400,000 OF THOSE.
SO WHAT WE SAY TO THE CLIENT AND PEOPLE HAVE BEEN CALLING US ALL OF THE TIME THROUGHOUT THE UNITED STATES, BECAUSE THEY ASSUME THAT WE'RE A DISASTER OFFICE.
IT IS AMAZING HOW MANY PEOPLE, YOU KNOW, WHO HAVE THEIR INFORMATION, YOU KNOW, BEING USED TO GET SBA LOANS AND SOME OF THEM GOT THE LOAN.
SO THIS IS WHAT WE TELL THE CLIENT AS THEY CALL.
PLEASE MAKE SURE YOUR POLICE -- IN YOUR NEAREST POLICE STATION, YOU HAVE TO GO.
THEY MAY BE USING YOUR SOCIAL SECURITY OR WHATEVER FOR OTHER THINGS.
SO THAT'S YOUR FIRST COURSE OF ACTION.
GIVE ME A LITTLE BIT OF INFORMATION BECAUSE THE SBA HAS THE OFFICE OF INVESTIGATION.
THEY ARE HANDLING ALL OF THESE CASES.
THE SBA DISASTER CENTER IN FORT WORTH HAD TO SET UP THE CLAIMS DIVISION, IT IS
[00:50:01]
CALLED THE FALSE CLAIMS. GIVE ME YOUR NAME, ADDRESS, SOCIAL SECURITY, MANY PEOPLE THEIR CREDIT.GIVE ME THE DATE AND I WILL SEND TO THE SBA FOR THEM TO DO THEIR INVESTIGATION.
THE CHANCES ARE SOME OF THIS LOAN COULD OBVIOUSLY BEEN MADE, BUT OF COURSE, SBA HAS THE CONTACT, WHERE THEY DEPOSITED THE MONEY.
THEY WILL TAKE CARE OF THAT INVESTIGATION.
THE PROBLEM IS THE CLIENT IS ASKING FOR A LITTLE BIT MORE INFORMATION THAT WE CAN NOT PROVIDE, YOU KNOW, WHO DID THAT, HOW MUCH DID THEY GET? DID THEY GET THE MONEY? THAT'S PART OF THE DISASTER INVESTIGATION.
THAT'S THE OFFICE OF INVESTIGATION.
THEY WILL NEVER SHARE INFORMATION WITH US.
BUT AT THE MINIMUM, WE GET THAT INFORMATION AND THEY IMMEDIATELY START INVESTIGATING.
THEY CAN MAKE A STOP ON THE CHECK, THEY CAN LOOK AT THE APPLICATION AGAIN TO MAKE SURE THAT THE LOAN WAS NOT -- YOU KNOW, WAS NOT GIVEN FOR THIS PERSON, BECAUSE THEY HAVE A NAME OF THE PERSON ON THE APPLICATION.
IF I WAS YOU, I WENT TO THE POLICE STATION.
FDIC.GOV AND YOU CAN ENTER THAT INFORMATION.
WE'RE GOING TO TAKE THAT INFORMATION AND SENT IT TO THE FRAUD DIVISION OF THE SBA, WE'LL NEED YOUR NAME, EMAIL ADDRESS AND TELEPHONE NUMBER AND THAT SORT OF THING.
WE IMMEDIATELY SEND IT TO THE DISASTER, IN THE ADDITION WE SEND IT TO THE OIG ON YOUR BEHALF.
OIG.GOV, AND THAT'S ALL THEY DO IS INVESTIGATE THINGS LIKE THAT.
>> SO GO TO YOUR LOCAL LAW ENFORCEMENT FIRST.
DOES LOCAL LAW ENFORCEMENT TYPICALLY REACH OUT TO THE FEDERAL INVESTIGATORS AS WELL?
>> WE GET A LOT OF CALLS FROM POLICE STATIONS.
PEOPLE WHO THINK THEY HAVE DONE EVERYTHING.
REPORT IT TO THE POLICE, BUT PLEASE, PLEASE, LET'S GO A COUPLE MORE STEPS.
WHY IT IS CRITICAL AND OF COURSE SBA DISASTER, SO PEOPLE WILL KNOW.
BUT A LOT OF PEOPLE GO TO THEIR POLICE STATION AND REACH OUT TO THEM, BECAUSE THE POLICE STATION WOULD HAVE GIVEN US THE NUMBER, AND TELL THEM, IT IS IMPORTANT TO GO TO THE FTC.
>> WE HAVE A COUPLE MINUTES LEFT AND I KIND OF WANTED TO GO BACK TO WHERE WE STARTED AND THAT WAS THE 15 BILLION THAT YOU TALKED FOR THE GRANTS, CORRECT?
>> JUST TO CLARIFY, THIS IS A NEW PROGRAM, A GRANT PROGRAM THAT IS GOING TO BE -- THAT IT IS NOT -- IT IS NOT -- IT IS NOT IN PLACE NOW, CORRECT? IT IS STILL SORT OF IN THE WORKS, BUT IT IS GOING TO BE COMING OUT IN PROBABLY THE NEXT FEW WEEKS IS WHAT YOU'RE SAYING?
PEOPLE ARE ALREADY CALLING US.
WE HAVE BEEN DOING A SEMINAR, I THINK THE GOVERNOR'S OFFICE IS DOING A SEMINAR NEXT WEEK.
>> WE HAVE A COUPLE OF SEMINARS, WE DO ONE ON USING MICROSOFT TEAM.
I THINK WE HAD ABOUT 3,000 PEOPLE, OR 4,000 PEOPLE ON IT.
THROUGHOUT THE UNITED STATES OF COURSE.
YOU KNOW, I HOPE TO BE ABLE TO RECEIVE -- AS I SAID, I GIVE THE CORONAVIRUS RELIEF, YOU KNOW, WEBSITE, PEOPLE WANT TO CHECK ON THEIR OWN, BUT I WILL LET YOU KNOW FOR SURE WHEN WE HAVE THE INFORMATION.
YOU GO TO SBA.GOV/CORONAVIRUS RELIEF.
THAT'S WHERE THE APPLICATION IS POSTED.
ONCE I GET IT, YOU CAN COUNT ON US, WE WILL MAKE SURE THAT YOU HAVE IT ON HAND.
>> THE PROGRAM IS CALLED SVOG.
THE SHUTTERED VENUE OPERATOR'S GRANT.
I THINK THEY WERE SHUTDOWN, AND NEVER REALLY OPENED.
SHUTSERED VENUE OPERATOR'S GRANT PROGRAM.
YOU CAN APPLY FOR MAXIMUM 10 MILLION.
YOU HAVE TO PROVE THAT YOU DID APPLY FOR THE PPP TO BECOME ELIGIBLE FOR THE
[00:55:07]
GRANT, BECAUSE THE PPP IS ALSO A GRANT AND I SEE THERE IS A LOT MORE MONEY -- BECAUSE YOU CAN GET AN AMOUNT EQUAL TO 45% OF GROSS REVENUE.SO IT COULD BE A SUBSTANTIAL AMOUNT UP TO $10Â MILLION.
WHEREAS THE PPP ONLY GOES TO TWO MILLION, SO I DON'T KNOW WHETHER SOMEBODY WOULD WANT TO APPLY FOR A PPP IN LIEU OF THAT GRANT PROGRAM.
>> SO IF YOU HAVE ALREADY APPLIED FOR PPP YOU DON'T QUALIFY?
>> YOU CAN NOT GET THAT GRANT.
AND THIS IS ONLY FOR SOMEBODY -- A BUSINESS THAT HASN'T APPLIED FOR THE PPP.
IT DOESN'T PLAY A ROLE IN THIS AT ALL.
IF YOU HAVE APPLIED THE FIRST TIME, FORGIVENESS, YOU CAN APPLY UNDER THAT GRANT.
IF YOU HAVE APPLIED FOR PPP THE FIRST TIME, BUT YOU PLAN TO APPLY RIGHT NOW, BECAUSE A LOT OF PEOPLE KNOW ABOUT THAT SEC DRAW OF PPP, THEY ARE EXCITED, THEY MAY GO AHEAD AND APPLY, NOT KNOWING THAT THE PROGRAM EXISTS, IT IS VERY IMPORTANT THAT WE EDUCATE EVERYBODY.
IF YOU HAVE APPLIED FOR THE PPP THE FIST TIME AROUND YOU ARE ELIGIBLE TO APPLY FOR THAT GRANT.
IF YOU PLAN TO APPLY AND IT WOULD HAVE HAPPENED THIS WEEK, BECAUSE JUST LAST WEEK A HANDFUL OF ORGANIZATIONS COULD HAVE APPLIED, SO YOU STILL HAVE TIME TO DRAW THAT APPLICATION, IF YOU ARE A SECOND TIME APPLICANT, BECAUSE YOU HAVE A BETTER CHANCE GETTING A GRANT WITH SO MUCH MORE MONEY.
WELL, THAT'S A LOT OF GREAT INFORMATION YOU HAVE SHARED WITH US TODAY AND IT SOUNDS LIKE WE'RE PROBABLY GOING TO HAVE TO REVISIT AGAIN WHEN WE'RE GETTING CLOSE TO THAT PROGRAM INFORMATION.
>> HOPEFULLY WE CAN GETTING TO AGAIN AND PROVIDE ADDITIONAL INFORMATION TO THE SMALL BUSINESSES THAT ARE IN OUR COMMUNITY THAT WE CAN SERVE AND INFORM.
SO WE THANK YOU FOR ANOTHER GREAT OPPORTUNITY TO GET THE WORD OUT ABOUT WHAT'S GOING ON AT THE SBA.
ONE QUICK QUESTION, AS WE'RE CLOSING HERE.
BUT WITH THE TRANSITION FROM THE PREVIOUS ADMINISTRATION TO THE NEW ADMINISTRATION, IS THAT GOING TO THROW ANY DISRUPTION INTO SBA ADMINISTRATOR'S -- ADMINISTRATOR'S PROGRAMS, DO YOU SEE THAT HAPPENING?
>> THINGS DON'T SEEM TO CHANGE MUCH.
YOU KNOW, THEY WOULD COME AND SPEAK TO THE ADMINISTRATOR.
THIS IS WHAT WE DO AND NORMALLY THEY HAVE NO BIG PLAN TO CHANGE THINGS OVER.
AS YOU KNOW, YOU NEVER REALLY GET TO KNOW OUR REGIONAL ADMINISTRATOR WELL.
HE WAS AN APPOINTEE, SO YESTERDAY BY 12:00, HE HAD TO GET OUT.
>> THE ADMINISTRATION SIDE OF IT FOR THE TIME BEING IS GOING TO CONTINUE, YOU'RE NOT GOING TO GET THROWN OUT.
WE JUST STARTED BECAUSE THE TRANSITION TEAM THAT VISITED EVERY SINGLE OFFICE WITHIN SBA.
THEY SHOULD HAVE WAITED UNTIL THE NEXT ADMINISTRATION COMES IN.
JUST ANNOUNCED IT ACTUALLY TWO DAYS AGO FOR THE TRANSITION.
I MEAN, FOR ME, FOR ME, IF YOU ARE TO ASK MY OPINION, I'VE NEVER SEEN ANY MAJOR, MAJOR CHANGES TO PROGRAMS. THINGS NEED TO CONTINUE.
TRANSITION TEAM WAS TO THE OFFICE OF FIELD OPERATION DISCUSSED STAFFING.
AND WHAT CAME UP IS WE NEED MORE PEOPLE OUT IN THE FIELD TO DO THE WORK.
AND THE RESPONSE WAS, WE HAVE TO GIVE THE PEOPLE WHEN WE START IN JANUARY, THAT'S WHAT WE WANT TO HEAR.
THAT'S VERY POSITIVE, THE LOAN PROGRAM IS NOT GOING TO CHANGE, IMPROVEMENT TO PROGRAMS, MAYBE, IF NEED BE, YEAH.
>> SO YOU'RE NOT GOING TO SEE MUCH CHANGES, YOU KNOW WHO THE ADMINISTRATOR IS.
WELL, SO WE'RE UP ON OUR TIME, THANK YOU, AGAIN, THANK YOU TO OUR SBA PARTNERS FOR MAKING TODAY'S EVENT POSSIBLE.
WE LOOK FORWARD TO SEEING YOU AGAIN, PROBABLY IN THE NEXT FEW WEEKS.
>> IT IS MY PLEASURE, BYE-BYE.
* This transcript was compiled from uncorrected Closed Captioning.