Coronavirus - effects on business

[Maxie]

Pierre got it right.
What's frightening about this virus is how fast it's affecting the world, I am attaching a article form the January edition of the New Scientist saying that they have found a virus in Wuhan and 59 people are affected and they are not sure what it is.     That's 3 months ago, crazy.
The SGIA should get a legal team to advise on all these questions about how to handle staff and what loans to get, etc.

[GraphicDisorder]

A lot of this is going to come down to your cash reserves. We've been responsible in that department. Our soft plan is once the work stops from either lack of sales or being forced to close by the government, we will keep our staff employed for a short period. Then we will simply have to lay everyone off. Makes me sick to do it. We had ultra slow day Monday, about half sales as normal day yesterday. We have about a week and a half on the books for screen printing and 2 weeks on embroidery. 

Then from there we trim 100% of all non essential spending. Sell cars I don't need, refi house/building/talk to my bank about maybe going interest only for a period (know the bank on a personal level). When things turn back to good we bring people back as we can and move forward the best we can. One thing to remember is a lot of shops will go out of business on this. If you can make it out the other side there will be a larger piece of the pie there if you can manage this chaos.

The important part to remember is everyone is about to be faced with similar as you are. Panicking will not solve anything. Sit down look at your situation and make some tough choices.

[mk162]

as of tomorrow I am the sole employee of Repla.  It hasn't been this way since 1986. 

The contract work here is trickling in.  Our regular work was shut off like a faucet.

I've already contacted all of our leasing/loan companies and I am in the process of renegotiating those.  We are essentially shutting down.  It will be temporary, hopefully.

[whitewater]

I have been looking at applying for the SBA business loan to get through. BUT, then i started thinking what if i make it a month, and we are still where we are? Then i still have to pay that loan back..with interest. so then i would be worse off then i am.

[whitewater]

And i told my staff to file for unemployment now...they have been trying for 2 days... no one can get on to do it. The system is overwhelmed.

[Nitrox73]

I have been looking at applying for the SBA business loan to get through. BUT, then i started thinking what if i make it a month, and we are still where we are? Then i still have to pay that loan back..with interest. so then i would be worse off then i am.

We've checked in to the SBA emergency funds. It's $50B from the Fed. You can apply for up to $2M at 3.75% However, your state has to declare an economic financial crisis before you can apply. Here' in Indiana, we can't yet.

Here's the info we got from our Chamber of Commerce, that's been awesome in trying to help but they are pissed that the state won't do anything. Holcomb is a tool....

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

https://www.sba.gov/disaster-assistance/coronavirus-covid-19

[3Deep]

I know it's hard to find a silver lining in all this mess, but the only thing we got going for us is all our equipment is paid for and our biggest expense shop wise is rent.  We are hoping we have enough reserve to outlast the shutdown, this is one time I'm glad we are small so to speak but then again we still might shut down scary as hell for sure.

[aauusa]

if you are in florida they do have small business emergency bridge loans up to 50K  no interest till December.  talk to your loan holders to see if you can defer payment for 60 days.  these are the steps we are taking now. 

[cbjamel]

Yea our idiot Governor hasn't declared yet either in Colorado.
So No Help! yet....

Shane

[Frog]

Okay, I figured that it was time for me to check in on this as well, coming from a slightly different perspective, as I represent the very small volume end of this industry. As many here may know, for the last few years I have been "retiring", merely letting my business die a slow, natural death, with no advertising, SEO,or other promotion. and even finally being able to really, really know when to say no, and cherry pick jobs. Screen Printing jobs that deem worthy get sent to a buddy's shop to do, and I've been taking the small runs, and vinyl and digital transfer jobs that others shun, and always seem to pop up regularly, and allow me to remain creative, and do what I like doing.
Last week, the spigot started to trickle with no follow up emails on jobs that were going to happen, but I was waiting on their art or other details.

Monday, no new calls or emails, and Tuesday the entire SF Bay Area (7 counties) entered a "Shelter in Place" status that closed all non-essential business locations to the public. Business that sell supplies for business and shipping stores like UPS remain open. as do hardware stores, and grocery, and pet food shops. "Non-essential" travel is banned.  We can drive for supplies, health reasons, and food. We can walk or hike or run if we can keep the required distance from others.

For me, the financial impact is far less than for most of you. No employees, minimal overhead with my business located on my residential property. Nonetheless, it is quickly sinking in to me that Social Security, and the small dividend check from my retirement account is not going to cut it. That check, will, of course, be considerably cut as well. I guess that essentially, I am now retired and will have to now rely on said account, dwindling daily with the whims of the market as it is.
I also know that eventually, things will turn around. And, contrary to the somewhat sick trend of millenials cheering this as the "Boomer Remover", Mrs. Frog and I will survive, and even thrive in that time of life for us in which we still feel young and healthy enough to do the things we want, and old enough to afford them.
Good luck, and stay well my friends.

[Croft]

I know it's hard to find a silver lining in all this mess, but the only thing we got going for us is all our equipment is paid for and our biggest expense shop wise is rent.  We are hoping we have enough reserve to outlast the shutdown, this is one time I'm glad we are small so to speak but then again we still might shut down scary as hell for sure.

Same here I have been pretty conservative over the years, maybe not expanding as quickly as others , maybe not earning as much as others but have ended up with 5 employees and  no debt , have always kept enough in the bank to carry any overhead for a year. I'm paying my people for the next 2 weeks then we will see, orders have slowed a great bit but orders are still coming in. I'll see how I feel in a month but at this point who knows. stay safe everyone.

[whitewater]

I have been looking at applying for the SBA business loan to get through. BUT, then i started thinking what if i make it a month, and we are still where we are? Then i still have to pay that loan back..with interest. so then i would be worse off then i am.

We've checked in to the SBA emergency funds. It's $50B from the Fed. You can apply for up to $2M at 3.75% However, your state has to declare an economic financial crisis before you can apply. Here' in Indiana, we can't yet.

Here's the info we got from our Chamber of Commerce, that's been awesome in trying to help but they are pissed that the state won't do anything. Holcomb is a tool....


I spent 5 hours on this monday. 5 hours just to get registered. Then finally found what i was looking for. Tried to apply - nope. We are located in Upstate NY  - Albany area - and ONLY 3 counties in ny are eligible - 3 that are downstate.

as of today its still the same way.

Last night having insomina, i was thinking about this loan with interest, what happens if i take a loan out to get me through the month...then what happens if we are still like this in a month? So then we are still closed, will there be money for another loan with interest? Or do i have to close up for good and NOW i have a loan hanging over my head to deal with that could take years to pay back...

If i saw any light at the end of the tunnel here, then i would do it... but i search and can not find anything positive coming up in the next couple weeks.

If anyone has sees any glimmer of hope or timeline for this please share.


https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

https://www.sba.gov/disaster-assistance/coronavirus-covid-19

[blue moon]

If you get a loan, do not use the money. Have it sitting in the bank to use after the virus is under control.
When the businesses reopen and ppl are walking out and about, you will see if you can use the money to get going again.
That is the only acceptable use for it. Even then you will have to do some math to figure out if the risk is worth it.
Pierre

[Nitrox73]

If you get a loan, do not use the money. Have it sitting in the bank to use after the virus is under control.
When the businesses reopen and ppl are walking out and about, you will see if you can use the money to get going again.
That is the only acceptable use for it. Even then you will have to do some math to figure out if the risk is worth it.
Pierre

I literally just got done having that conversation with our bank. They advised getting the loan when it becomes available and sitting on it.

[whitewater]

interesting way to think about the loan.