Worth a shot?

[Dnkldorf]

Times are a little slow right now, so I was thinking.
I am thinking of burying all profits back into the business somehow, with equipment purchases, new tools, vehicles, buy some ground…I don't know.

Let’s say I totally break even, with no profit when I’m done. Maybe we’ll leave $10-15K on the books for the IRS..

Now, being an S-corp, and taking the “reasonable salary” that the IRS forces me too, I take the min $7,500 as salary.

Then I file individually from my spouse, and claim income below the poverty line….

I’m thinking that next year, when the government starts handing out free money and low interest loans to low income people with small businesses that I would be sitting pretty.

I end up with a bunch of new stuff, low interest loans from the gov, and the economy is starting to turn around and business picks up.

[khixxx]

I would think now would be the time to get some big ticket items. Interest rates are seriously low. I think next year we will start seeing interest rates going up. In the end I wouldn't be surprised if they were double digits IMO.

I have been getting cheaper labor down on some of my rental properties. You know stuff that needed done that I was putting off.

I just bought an 2008 left over F250 Diesel for $31k OTD it was stickered at $47k.

[zog]

Someone who understands the system and how to make it work, good to see.

[benaround]

What if the money lender says, 'How you going to pay us back, you only make $7500" ?

[Dnkldorf]

What if the money lender says, 'How you going to pay us back, you only make $7500" ?

I tell him I'm backed by Uncle Sam (the taxpayers) and the SBA.

[Rewire]

I tell him I'm backed by Uncle Sam (the taxpayers) and the SBA.

Banks now want you to have more than just a pulse,lending is still possible but not as easy.A good plan is what they will be looking for we are expanding our operation into another city we have hired a cusultant to help write applications for stimulous money.

[Dnkldorf]

Banks now want you to have more than just a pulse,lending is still possible but not as easy.


Huh, it is easy as heck to get money if your broke and have debt. It is impossible if your books are squeeky clean and debt free.

Look at what they have out right now. The gov made up to $35,000 available to small businesses, but it has to be used to pay off existing debt. The loan is interest free for up to 6 years, and you don't start paying it back until like 6 months after the last disbursment of the loan funds.

So if you have debt, you can apply. If you don't, you can't.

google SBA ARC loan program.

[weressl]

I’m thinking that next year, when the government starts handing out free money and low interest loans to low income people with small businesses that I would be sitting pretty.

The Government will be handing out $'s that are my taxpayer $'s. That is 'your' free money.

SHeeees:mad:

[walkerj]

The Government will be handing out $'s that are my taxpayer $'s. That is 'your' free money.

SHeeees:mad:

Makes me sick also.

Huh, it is easy as heck to get money if your broke and have debt. It is impossible if your books are squeeky clean and debt free.

Look at what they have out right now. The gov made up to $35,000 available to small businesses, but it has to be used to pay off existing debt. The loan is interest free for up to 6 years, and you don't start paying it back until like 6 months after the last disbursment of the loan funds.

So if you have debt, you can apply. If you don't, you can't.

google SBA ARC loan program.


Where do you think this free money comes from?

Now all the people on top of their game, with no debt, have to pay for yours?

Makes perfect sense:roll:

[Rewire]

Huh, it is easy as heck to get money if your broke and have debt. It is impossible if your books are squeeky clean and debt free.

Look at what they have out right now. The gov made up to $35,000 available to small businesses, but it has to be used to pay off existing debt. The loan is interest free for up to 6 years, and you don't start paying it back until like 6 months after the last disbursment of the loan funds.

So if you have debt, you can apply. If you don't, you can't.

google SBA ARC loan program.

then go get it and I hope it works out for you

[CopperTone]

Drive your healthy company into massive debt to try to get a gov. bailout? yea that sounds like a good business plan.

you would be better off having great professional relationships with a banker, an attorney, an accountant, and a financial adviser.

I had an accountant once tell me " there are plenty of ways to legally "hide" your money". For one, try a simple IRA - you'd be surprised how much pretaxed money you can max into one of those and get a pretaxed company match.

Or buy a piece of property to run your business from. with this economy you can get great deals and a great investment to sell 10 years down the road.

Cash is king right now - if you have it hold on to it - you still don't know what 6 months from now will bring - Buy what you need - don't just spend to spend.

[Rewire]

where have all the good topics gone just a few months back we were topping 100 replies now a topic is lucky to get 10

[hardworkingstiff]

From what I'm hearing, it will be 18-30 months before things start to get better and then interest rates will kick in hard to slow it down.

Your best plan is to shore up your balance sheet. Being self employeed, you should have at least a years worth of living expenses in easily retrieved assets. In this economic environment you might really need to bump it up to 2 years.

Taking a $7,500/year salary is a good way to trigger an IRS audit, so make sure your books are perfect and you are squeeky clean.

Planning to fool the government into giving/lending one money if one could have gotten by without it makes one part of the problem and not part of the solution. :smile:

[vinster888]

i bet you voted for obama too. thanks for being another sponge on the system instead of making money the right way.

[iwire]

Lets get back on topic, if the conversation keeps heading toward politics the thread will be closed.

[Dnkldorf]

Planning to fool the government into giving/lending one money if one could have gotten by without it makes one part of the problem and not part of the solution. :smile:


Depends who's perspective your looking at.

On one hand, I would appear to be using the system to my advantage, and legal also.
Yet on the other, one might see me as part of the problem, for using this system to my advantage.

Do I think of me and make out great, or do I think of everyone else, and keep trucking along just fine?

[Dnkldorf]

Lets get back on topic, if the conversation keeps heading toward politics the thread will be closed.

Yeah, you have been on a real roll this week.
Is there a quota you were trying to fill?

[iwire]

Yeah, you have been on a real roll this week.
Is there a quota you were trying to fill?

Yes, and you will help me fill it.

[Dnkldorf]

Yes, and you will help me fill it.


Power trip this week?

[iwire]

Power trip this week?

Could be, or it could be that we never have allowed political discussions here.

[dbuckley]

... thanks for being another sponge on the system instead of making money the right way.
The only people that make money are the Federal Reserve; everyone else redistributes wealth.

Strangely, many people who have no problem whatsoever with they are doing the wealth redistribution, but have difficulties when Governments (or any colour or nationality, this isn't a USA only feature) do wealth distribution...

Definition of a political posting - if a mod can tell who you voted for then its a political posting!

[busman]

The idea of manipulating your books to get Gov't money makes me want to vomit.

Mark

[dduffee260]

I guess things are different with us. We have never had more people stumbling over each other to loan us money. If GM sank it was not because we did not help this year, we have purchased 6 new vehicles and looking at 2 more.

I constantly get these lease places calling me begging me to borrow money from them. Truth is I don't trust them. Every loan we have is from a small town bank and the banker lives a block from me. I have known these guys for 25 years and if I can I let them have all of our notes.

We also have been making monthly trips to the bank to deposit CD's. I know the rates are terrible but at least they are safe.

I hope things do pick up in about a year. I think we are covered until then.

As far as getting any type of SBA loans, I don't need the paperwork or the headaches. I do not need the goverment in my business any more than they already are.

[tonyou812]

The idea of manipulating your books to get Gov't money makes me want to vomit.

Mark
Same here...

[hardworkingstiff]

I wonder, if you take their money, will they tell you what you can charge/make ? :smile:

[khixxx]

After reading about the Arc Program I would stay far away from it unless you meet the standards. "Immediate financial hardship" does not mean buying new stuff to go in debt. Either way I would contact the SBA directly. They might even have other Government back programs that might be a better fit for you.

Some of you guys crack me up. If you get a loan from the SBA and you drop the ball and default who do you think picks the bill up?

[Sparky555]

Times are a little slow right now, so I was thinking.
I am thinking of burying all profits back into the business somehow, with equipment purchases, new tools, vehicles, buy some ground…I don't know.

If you're having a slow spell there aren't any profits.

BS alarm on this one.

[wirenut1972]

O.K. I’m game.:grin: I called the SBA and asked about the ARC loan.

The program is good for one year or 35,000 dollars which ever comes first. Basically I tell the SBA who I owe and how much, they make the min payments on my debt.

So, if I have a C.C. bill, supply house bill, truck note, and gas card payment, the SBA will send me checks made out to the C.C. or supply house. I then sign the checks and mail ‘em to the people I owe.

The program will only make the minimum payment’s. Up to 35 grand or one year. No interest no payments on the SBA ARC loan for one year, after the last pay out.

The nice people at the SBA explained to me that if I didn’t have to make payments, that would help my cash flow. With freed up capital I’d be able to advertize, buy new equipment, or buy property.

Politics aside, what is the point of this loan?

For 35 grand, what am I to do with that? That’s like a week of billing when I’m busy(ok two weeks). I’m not busy, I’m slow as heck. I don’t want money, I want work. When I get the work I go fast and make money.

I don’t get it. I owe 35 grand, don’t have to worry about a truck payment(or what ever) for a year. Then I owe 35 grand and still in the same place I am now.

The SBA will not pay anything off in full, only min payments!!??

I think it would be a good deal 35 grand one year no interest no payments, kinda, if I really needed 35 grand…………….

Really, 35 grand and then what?

Me, I get a job, finish the job, pay off the supply house in full, taxes and benis are paid in full during the job, wait for last payment, do it again.


AM I MISSING SOMETHING?


Can everybody PLEASE leave the politic’en out of this one. Thank You, I really want to see where this goes.

[ptrip]

We also have been making monthly trips to the bank to deposit CD's. I know the rates are terrible but at least they are safe.



...and at least CD's offer a positive interest rate!

To the OP ... look at all facets of what you're planning. If it seems like a fishy plan where you need to question the ethics of it online ... it's probably fishy.

[Ohmy]

Can everybody PLEASE leave the politic’en out of this one. Thank You, I really want to see where this goes.

Cash is King. This was incredibly evident last fall during the "credit crunch." The idea behind giving folks some cash is that it gives them breathing room to operate or get over a bad job. Even a mid-size company could benifit from 35K. Say you keep 50K in the bank as your daily average to cover payroll, ads, material, etc., but you get stuck on a bad job and you take a 20% hit because contractor doesn't pay or your guys screw-up. On a 200K job, that's 40k that is gone and now you only have 10K in the bank to cover lets say 30k in liabilities. That is is a big time issue, especially if you need material and guys to finish the next job and get you back in the black.

The reason they don't just write you a check is because they are regulating the size of the loan. They don't want to give a 35K check to a dude with a pick-up truck or 5K to a company with weekly liabilities in the tens of thousands. Plus, while its true that paying someones bills is like giving them cash, it isn't really and makes it easier for the tax payer to swallow.

[Rewire]

I just realized My company is dept free.

[Flex]

call dave ramsey.

[macmikeman]

I think the op's plan may have some sort of merit if instead of purchasing tools or heavy equipment, he were to go into debt to purchase gold instead. If he can get the govt. to make the minimum payments for a few years on the purchases he has made on this commodity, it will be almost be certain to be worth alot more than now given current trends in that market and the way the dollars value is about to drop to the bottom. 8-)

[emahler]

I just realized My company is dept free.

I would agree, you are not large enough to justify having departments.

[Rewire]

I would agree, you are not large enough to justify having departments.

maybe a spelling department, after all I can't rely on you always being their for me.

[emahler]

maybe a spelling department, after all I can't rely on you always being their for me.

Depends. How much are you willing to pay?

[dduffee260]

The reason they don't just write you a check is because they are regulating the size of the loan. They don't want to give a 35K check to a dude with a pick-up truck or 5K to a company with weekly liabilities in the tens of thousands. Plus, while its true that paying someones bills is like giving them cash, it isn't really and makes it easier for the tax payer to swallow.

35K would last us about 8 days right now. Without vendor payments.

We are not debt free but we have more in cash than we owe which is supposedly good. Our bonding agent tells me that they want us to carry some amount of " managable" debt.

If we could collect what is out in retainage right now it would be a decent sum. But that's they way it goes I guess. As long as my check clears and I can pay my personal bills then everything is ok.

[weressl]

The idea of manipulating your books to get Gov't money makes me want to vomit.

Mark

You mean your and my money that we INVOLUNTARILY give to the Government?