Worth a shot?

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dbuckley

Senior Member
Location
Canterbury, New Zealand
vinster888 said:
... thanks for being another sponge on the system instead of making money the right way.
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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!
 
dduffee260

dduffee260

Senior Member
Location
Texas
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.
 
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khixxx

Senior Member
Location
BF PA
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?
 
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Sparky555

Senior Member
Dnkldorf said:
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.
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If you're having a slow spell there aren't any profits.

BS alarm on this one.
 
wirenut1972

wirenut1972

Member
Location
chicago
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

ptrip

Senior Member
dduffee260 said:
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.
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...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.
 
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Ohmy

Senior Member
Location
Atlanta, GA
wirenut1972 said:
Can everybody PLEASE leave the politic?en out of this one. Thank You, I really want to see where this goes.
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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.
 
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macmikeman

Senior Member
Location
Planet 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. :cool:
 
dduffee260

dduffee260

Senior Member
Location
Texas
Ohmy said:
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.
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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.
 
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