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Surly Thread of Business Owners/Managers, Etc. & Current Business Climate

VABuckeye

By VABuckeye
in Business and Markets

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Spaulding Smails
Spaulding Smails

Subscribed.  I've posted in two of the other threads, but I have a construction (residential and commercial) and facility maintenance company in Austin.  65 employees currently.  80% of my workforce c

MaclovioBrown
MaclovioBrown

CaboWabo and I run a small bank in South Texas with low workload on PPP approvals. PM if stuck in big bank queue and at risk of missing first tranche of funding. We can get you an SBA loan number in a

VABuckeye
VABuckeye

Bam! We were just awarded the Federal Reserve project we bid back in February.

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G650

G650 14249

Posted
Posted
2 hours ago, VABuckeye said:

His reply to me when I called him out on it. 
 

“I could just fire 50 people instead 

I have been floating them something for an entire month we have been closed 

The amount of money I have paid in state unemployment and taxes over the last decades is obscene 

I want it back. I want my dollars to work for me finally. 

Dont feel even 1 ounce bad about it. Society is still way ahead of me on those dollars. 

Call the local SS and report me. I am a CPA. I am gaming the fuck out of this.”

Holy fuck

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G650

G650 14249

Posted
Posted
16 minutes ago, T’Boo Ted Marshall said:

I look at businesses all day long and I stay away from restaurants and retail. Just can’t get past the margins.
Don’t trust RE much although I am a slumlord and like hard assets.
Give me a service based business any day with a side of manufacturing.

RE all day

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RollLeft

RollLeft 5044

Posted
Posted
19 minutes ago, T’Boo Ted Marshall said:

I look at businesses all day long and I stay away from restaurants and retail. Just can’t get past the margins.
Don’t trust RE much although I am a slumlord and like hard assets.
Give me a service based business any day with a side of manufacturing.

T if i remember correctly you broker some?  Aside from word of mouth referrals do you have a list of sites or places people go to list the sale of their business in Houston/Dallas/Texas. Is there a need for one? With so many businesses making hard choices, during this time, I know some will considering selling (their business if not assets) before trying to file for bankruptcy.   

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troph

troph 24783

Posted
Posted
30 minutes ago, T’Boo Ted Marshall said:

I look at businesses all day long and I stay away from restaurants and retail. Just can’t get past the margins.
Don’t trust RE much although I am a slumlord and like hard assets.
Give me a service based business any day with a side of manufacturing.

I’m into my second distribution based business with some private labeling and even some trade secret based product formulations to juice the margins. I like it.  The thing about hospitality though when it its hot man the numbers are insane.  I mean were.

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Doze

Doze 1322

Posted
Posted
12 hours ago, Cheeseweasel said:

This is a completely different "bailout" than the last shitshow (No CR).

75% MUST be spent on employees and the balance can ONLY pay for utilities (and some minor interest). No C-suiters are going to benefit from this, in fact, many of us are taking pay cuts to make sure our business survives. 

I thought I read that you can pay up to 25% for rent in addition to utilities.  ???

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Doze

Doze 1322

Posted
Posted (edited)
32 minutes ago, Chewbacca said:
33 minutes ago, Doze said:
I thought I read that you can pay up to 25% for rent in addition to utilities.  ???

Rent is included in utilities.

Never heard of Rent defined as a utility......so that's how it is in their family. 

Edited by Doze
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ChiTownDoc

ChiTownDoc 21151

Posted
Posted

We didn't apply for PPP in the end as a portfolio company for private equity.  Still super annoying that venture capitalist backed companies got to apply because of CA politics.  Overall we got 1.5M from CARES act from medicare payments - that's w add'l 300k that hit today.  We do a lot of medicare advantage that didn't get paid - hoping there's a chance down the line.  We will distribute the 1.5 to independent contractor docs and some of the employed midlevels as well.  We have not furloughed anyone and nobody laid off.  We have well over 100 docs so 1.5M is not some lottery we hit.  

I wouldn't be annoyed except we get to hear about Ruth's Chris and some other massive companies getting 10's of millions from PPP.  Also apparently hedge funds have been applying.  I'm glad all this is already coming out.  

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MaclovioBrown

MaclovioBrown 100

Posted
Posted
9 hours ago, Apep said:

IIRC, the interim final guidance that Treasury released earlier this week said "Schedule C", not the whole return. Not 100% sure, but I keep hearing that plenty of banks are asking for more than what is required. If you push back, they might drop it, but banks kinda do what they want.

Not really. Banks take the cautious route knowing the federal gubment does what it wants.

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ChiTownDoc

ChiTownDoc 21151

Posted
Posted
Just now, Chewbacca said:
6 minutes ago, ChiTownDoc said:
Feel most comfortable about my RE plays.  Of course most are very long term but compared to the market?  Fucking no brainer. 

Hopefully you're in apartments or industrial, but not retail or office.

When we sold I got into OZ stuff. It's a lot of stuff where the ground breaking is just starting.  Long ways to go on it.  But you don't get the full tax break unless you hold 10 years.  I'm on year 2 so I can breath easy.  The rest of my real estate stuff is apartments and it's not much.  I have some restaurants stuff but they got rent abatement.  But like everyone else, I'm taking a beating overall. 

I have about 1% of a telemedicine company that should be competing with teledoc in a year or two.  I'm on their board and that may be the play that bails me out of all this BS.  Telemedicine was only for rural areas with medicare before C19 but they've suspended all those rules and the cat is likely out of the bag - they were close to approving the RUSH act anyway but this should push it over the edge.  I don't know how you can go back on it and insists doctors do a physical face to face in this new world.  Especially doctors that see a ton of elderly patients...that population is too susceptible and it's too easy for busy doctors to spread disease really damn fast. 

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Brew

Brew 3049

Posted
Posted
3 hours ago, G650 said:

RE all day

Now is the time to double down on that bet. I had two groups closing deals next month that fell through in due diligence because of this. One is a large retail center and the other is 50k square feet of office space. I expect both have gotten cheaper in the last month and the numbers will have changed in our favor. Timing is everything and this may be one instance where it worked in my favor. That is offset by the fact my day job pays out 2/3 of annual comp in May which doesn’t look so great now, so I guess you win some and lose some.

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Brew

Brew 3049

Posted
Posted
1 hour ago, ChiTownDoc said:

We didn't apply for PPP in the end as a portfolio company for private equity.  Still super annoying that venture capitalist backed companies got to apply because of CA politics.  Overall we got 1.5M from CARES act from medicare payments - that's w add'l 300k that hit today.  We do a lot of medicare advantage that didn't get paid - hoping there's a chance down the line.  We will distribute the 1.5 to independent contractor docs and some of the employed midlevels as well.  We have not furloughed anyone and nobody laid off.  We have well over 100 docs so 1.5M is not some lottery we hit.  

I wouldn't be annoyed except we get to hear about Ruth's Chris and some other massive companies getting 10's of millions from PPP.  Also apparently hedge funds have been applying.  I'm glad all this is already coming out.  

I have a couple groups that are real uncomfortable signing the attestation agreements from HHS. They were rather vague in what the stipulations around the use of funds are.

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ChiTownDoc

ChiTownDoc 21151

Posted
Posted
14 minutes ago, Brew said:

I have a couple groups that are real uncomfortable signing the attestation agreements from HHS. They were rather vague in what the stipulations around the use of funds are.

Yeah we are really on the frontlines of C19 treating a lot of nursing home type patients etc.  For example, we had to buy our own PPE because many buildings don't have it.  I don't think we have any trouble with attestation but we will definitely not play around with proper documentation.  But if you're a group not really doing C19 care and making close to what you normally make...maybe radiology type groups...I would definitely say hell no to that money.  

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YoungCounty

YoungCounty 165

Posted
Posted

I’m self employed and received my PPP funding on Tuesday. Thankfully. 

Side note... I’m glad I didn’t listen to a poster way up thread who said “Just apply for the EIDL and be happy with your $10,000”. I did apply for that as well, but looks like I would only qualify for $1,000. 

So, what do I need to do with the money?  I do have rent and utilities. That part is simple. But do I simply write myself a check each week for the next 8 weeks to cover the payroll portion?

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T’Boo Ted Marshall

T’Boo Ted Marshall 2732

Posted
Posted
T if i remember correctly you broker some?  Aside from word of mouth referrals do you have a list of sites or places people go to list the sale of their business in Houston/Dallas/Texas. Is there a need for one? With so many businesses making hard choices, during this time, I know some will considering selling (their business if not assets) before trying to file for bankruptcy.   

I do it full time and really enjoy it. It’s not easy to sell a business so if people are trying to do it themselves that is a horribad idea and will lead to more frustration than anything. I’d say 95% of my engagements and from referrals.

 

It’s also a bit of a different process to sell one in distressed fashion. Vetting qualified buyers in a compressed manner takes focus but there are a lot of C and E level people that will look for a way out of their current roles to take on a business they can control.

Heck, I’ve been trying to buy a service contractor for a few months now but the old man doesn’t understand anything about how valuation and/or financing works.

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Reagan1k

Reagan1k 3024

Posted
Posted

We got PPP funded for both of my companies last week, after working through our local bank.  They were deliberate but not necessarily slow.  Fortunately I'd gotten out ahead of them and was more than ready once they said go.  Thanks to several of you for bits of wisdom and interpretations that helped me be ahead of the curve when they opened their window.

I've got several buddies who waited on their banks and were left holding an empty bag.  Hopefully they'll get swept up in a 2nd round. 

The impact of this on banking relationships is going to be interesting to watch.  

Take care all.  Trudge on......

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G650

G650 14249

Posted
Posted
17 minutes ago, bluto said:

If a buddy went thru BofA and they still don’t have a check in hand is it safe to assume they missed the boat? He’s saying his company was approved, just waiting on BofA to disburse

He fucked

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Cheeseweasel

Cheeseweasel 26438

Posted
Posted
On 4/17/2020 at 4:28 PM, VABuckeye said:

His reply to me when I called him out on it. 
 

“I could just fire 50 people instead 

I have been floating them something for an entire month we have been closed 

The amount of money I have paid in state unemployment and taxes over the last decades is obscene 

I want it back. I want my dollars to work for me finally. 

Dont feel even 1 ounce bad about it. Society is still way ahead of me on those dollars. 

Call the local SS and report me. I am a CPA. I am gaming the fuck out of this.”

Well fuck this guy. He's the kind of jackass who ruins it for the rest of us.

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SydneyCarton

SydneyCarton 48075

Posted
Posted
On 4/17/2020 at 10:03 PM, ChiTownDoc said:

When we sold I got into OZ stuff. It's a lot of stuff where the ground breaking is just starting.  Long ways to go on it.  But you don't get the full tax break unless you hold 10 years.  I'm on year 2 so I can breath easy.  The rest of my real estate stuff is apartments and it's not much.  I have some restaurants stuff but they got rent abatement.  But like everyone else, I'm taking a beating overall. 

I have about 1% of a telemedicine company that should be competing with teledoc in a year or two.  I'm on their board and that may be the play that bails me out of all this BS.  Telemedicine was only for rural areas with medicare before C19 but they've suspended all those rules and the cat is likely out of the bag - they were close to approving the RUSH act anyway but this should push it over the edge.  I don't know how you can go back on it and insists doctors do a physical face to face in this new world.  Especially doctors that see a ton of elderly patients...that population is too susceptible and it's too easy for busy doctors to spread disease really damn fast. 

I had an appt with my GP last week, second using telemedicine. Jude was amazed at how quickly they go up to speed with it, and has basically transformed how he looks at his entire business. He's part of a massive medical group, Village Medical. Basically said he no longer sees a reason he needs to travel for work, and should dedicate about 2 days a week to seeing patients solely online. Would rethink everything they do. 

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Brew

Brew 3049

Posted
Posted
4 hours ago, Cheeseweasel said:

That's correct. I guess rent = utilities for the SBA. 

The Act treats them differently. It also makes no mention of the max 25% that SBA is using from memory (have not double checked that), so it is all up to how SBA bastardizes the law. They have made a number of their own interpretations at this point.

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Cheeseweasel

Cheeseweasel 26438

Posted
Posted
2 minutes ago, Brew said:

The Act treats them differently. It also makes no mention of the max 25% that SBA is using from memory (have not double checked that), so it is all up to how SBA bastardizes the law. They have made a number of their own interpretations at this point.

The 25% max is "by default" since you must spend 75% on "wages". 

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Wulaw Horn

Wulaw Horn 19069

Posted
Posted
2 minutes ago, MrBig said:

Not trying to get political in here, but is the PPP or any other SBA loan available for marijuana businesses and abortion clinics too? No CR in this, just wondering a simple yes or no based on it being federal funding.

No on marijuana (it was on my application). I think PP does most abortions and they’d be too big.  I saw nothing on application to make me believe that an abortion clinic couldn’t get funding. 

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Brew

Brew 3049

Posted
Posted
6 minutes ago, Cheeseweasel said:

The 25% max is "by default" since you must spend 75% on "wages". 

There is nothing in the act that says you must spend 75% on wages. It says forgiveness will be calculated based on payroll costs, rent, etc in the 8 week period. Then it says forgiveness will be reduced by any reduction in total salary or wages of any employee by 25% or more.

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riloh05

riloh05 107

Posted
Posted
6 minutes ago, MrBig said:

Not trying to get political in here, but is the PPP or any other SBA loan available for marijuana businesses and abortion clinics too? No CR in this, just wondering a simple yes or no based on it being federal funding.

i would doubt the description of the business would be listed as "abortion clinic"...It probably looks like riloh's general medical practice.

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Brew

Brew 3049

Posted
Posted
3 minutes ago, VABuckeye said:

They need me to write this shit.  I write things in black and white.  No gray areas.

Copied and pasted straight from the Act. Ultimately, it doesn’t matter because we’re having to follow SBA guidance, but they have taken a number of liberties with what was written in the loan portion. Hopefully, they don’t get too far away from what was written on forgiveness. I did not copy and paste the FTE adjustment portion as it is pretty straightforward.

(b) Forgiveness.—An eligible recipient shall be eligible for forgiveness of indebtedness on a covered loan in an amount equal to the sum of the following costs incurred and payments made during the covered period:

(1) Payroll costs. 

(2) Any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation). 

(3) Any payment on any covered rent obligation.

(4) Any covered utility payment.

(3) REDUCTION RELATING TO SALARY AND WAGES.—

(A) IN GENERAL.—The amount of loan forgiveness under this section shall be reduced by the amount of any reduction in total salary or wages of any employee described in subparagraph (B) during the covered period that is in excess of 25 percent of the total salary or wages of the employee during the most recent full quarter during which the employee was employed before the covered period.

 

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SquishMitten

SquishMitten 10403

Posted
Posted
8 minutes ago, VABuckeye said:

So they took out health insurance premiums but they let us use health insurance premiums to calculate the loan.  Twats.

You don't HAVE to use all the money you're given. If you end up with extra that you can't figure out how to use on something forgivable, just pay it back.

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Brew

Brew 3049

Posted
Posted
11 minutes ago, VABuckeye said:

So they took out health insurance premiums but they let us use health insurance premiums to calculate the loan.  Twats.

Health insurance is included in the definition of payroll costs along with the other payroll related items.

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