Scott Duffy, Episode 18: How To Manage Through Coronavirus, Recession & Uncertain Times

Good morning, everybody.

Good morning. I hope you guys are off to a great day. And this is Scott Duffy, and I am coming to you live. I'm in Los Angeles, and I want to welcome all of you guys for joining the live stream. We are now broadcasting across Facebook and YouTube and Instagram and Periscope and LinkedIn. And so for all of you who are joining, if you haven't joined before, I'd love to ask you to do something for me. If you could drop your names into the comments, wherever you're watching from, what industry you're in and the biggest challenge that you're having, I want to use this opportunity that we have together the next hour to answer any questions that you have and really shape this show around the things that it is that you need. Again, my name is Scott Duffy. I'm so happy that you're here today. There's so much to discuss. And let me, let me share. If you are somebody that is considering applying for economic stimulus, you're considering applying for economic stimulus, whether it is through a federal disaster relief loan or it's through the $350 billion stimulus plan, there is a ton of new information that came out overnight and was released this morning. If you are going to apply, this is the show that you got to watch. Today, is the one that you have to watch, because I'm going to go through everything. I have been up.

All morning reading, taking notes. I have read everything. I've read how this program applies to borrowers directly from the SBA and the treasury, how it applies to lenders. I even have gone through the application which I have right here, for that $350 billion of stimulus money. And so what I'm going to share with you today is everything I know, everything I've learned in the past 24 hours since our last show. I've talked to folks at the sba. I've talked to folks that were formerly at the SBDC Small Business Development Council, that worked hand in hand with the SBA to help businesses like yours and mine to get funding. And I have spent my time this morning going through all of the new stuff that's been released, and it is awesome. I'll tell you what, in a time where we go on television or we open up our favorite news website, it looks like everything is so negative. Today's show is actually all about good news. Today's show is about things that are super. They're really positive and super beneficial for you and me as business owners, as business leaders, as people that may need Help Right now, we not only need each other, but we may need help. We may need some stimulus from the government to help us to keep our businesses moving forward. There's a lot here. There's a lot in these programs. I have everything for you today. So again, if you are thinking about raising money, you're planning to do it. This is a show you got to watch. And if you know somebody that is considering raising money or, or applying for a loan, please share this with them. Please share this to your groups and your communities because I'm going to share what you need to know today. The lad this information that came out from the government, it was posted this morning on the the treasury, the FB and the SBA's website. So I'm gonna wait just another minute and let this stream continue to propagate across social media. And good morning. Patrick Carney, it's always good to see you. Thank you so much for joining.

And hello. Sita Thompson. Good to see you this morning. Thanks so much for joining.

And I want to thank all of you guys for being here. This is going to be an awesome show. So good morning. My name is Scott Duffy and this is what Now An Entrepreneur's Guide to Managing Through Coronavirus, Recession and Uncertain Times. I want to welcome you from wherever you're listening. You can tune in each day at 10am Pacific Time to watch the live broadcast on YouTube and Facebook or listen nationwide on Dash Radio throughout the day or, or download the podcast. Now, this show is for entrepreneurs, small businesses, and those thinking about starting their own companies. It's for people affected by this economy. So maybe they lost their job, maybe they were furloughed, maybe they were a consultant and saw all of their contracts disappear like that. It's for people who are asking the question, what do I do now? And how do I come out of this even stronger? Now, our focus for today's show is going to be on what you need to know to apply for the economic relief that's being made available by the government today. Hazel Ortega, you always put a smile on my face. Great to see you, Christina. Great to see you. On today's show again, we're going to talk about what you need to know in order to apply for the stimulus packages today. And there's so much here. I'm just going to, I'm going to drop right into it. So this morning, Treasury Secretary Steve Mnuchin laid out the government's plan for how it will distribute the $350 billion in stimulus money. And I am so excited about this plan again in a time where every time it seems like you go on television and you watch the news or you open up your favorite website, it seems like everything out there is negative. What we're gonna talk about is positive. This is really good news for business. I was so concerned when the government passed the stimulus package last week that it was going to be built for big businesses like it was in 2008 and 2009 when the market crashed. But this business is built. This plan is built for people like you and me. So super exciting. What I'm going to share with you today is how the stimulus plan affects borrowers. And I'm actually going to do a little bit of reading because I want to make sure that, that I get all this information absolutely accurate. So how it affects borrowers and how it affects lenders, I want to share with you where and how you're going to apply when they open the gates to receive this money. And also I want to talk to you about the two most common programs that people are applying for today. Because there's a lot of things that you need to know about these two programs and what you can and you can't do so you understand which program is right or not right for you and your situation. And I want to start with this before we get to the stimulus, the Eidl program. So the economic injury disaster loan program. Now there is a link that has been going around for the past, really since I think Friday, Saturday, where you can click on this link and you can apply for a $10,000 loan or grant. So let me share with you how that works and what that Eidl program is all about. Because that program, think of it like a fund, almost like an investment fund. It's a fund that was created before the coronavirus Crisis. Now, the $350 billion stimulus package is a new fund. So the Eidl program was, was already around and it was already funded and it was something that was already there in place for the government to use, a vehicle to use to help get money into our pockets quickly, to help us to run and to maintain our businesses. With the EIDL loan, there is a simple point and click application. And if you look in our stream, if you're not a member of our group, it's called what Now? An Entrepreneur's Guide to Managing Through Recession or Coronavirus Recession in Uncertain Times. If you look in our group, you'll see the link to the EIDL program. So here's the thing. When you apply, it's A, I believe it was a two page application. It's super simple. You're not asked to provide taxes, profit and loss statements, balance sheets, anything like that. So you don't have to provide any of that information. And basically what this is is it's an advance. So the $10,000 is advanced to you quickly by the government and it is an advance on a decision about whether or not to give you a loan or a grant. So you only apply for one thing. You only apply for one thing, one application. And they use that to determine whether you get a loan or a grant. Now, if you get the loan, then you go ahead and you pay back the loan. There are certain things that you can do in order to have some of that loan forgiven.

If you do not qualify for the loan, then the money immediately becomes a grant and that's something that you don't have to pay back. So again, the Eidl is a super simple, super simple application. It'll take you 15, 20 minutes to complete. You're eligible for $10,000 in emergency economic relief. And again, the government will look at that and they'll determine whether or not you're going to have to pay that money back. So they'll process it as a loan or as a grant. The money gets to you quickly. It's almost like an advance on their decision. So that's the Eidl program. That. And again, if you're looking for the link, just go down, take a look in our group and I've posted it. There's if you want to apply for stimulus and the stimulus comes out of the $350 billion. $350 billion.

Government program. It's a different process.

So the stimulus. And I want you guys to get this stuff down. The first thing I described was the Eidl program. The other acronym that you're going to hear a lot about over the next month is the PPP program. That is the name of the $300 billion stimulus package for business. It is the Paycheck Protection Program. The PPP Paycheck Protection Program. And the way that this was written and approved on Friday and the way that it's being laid out this morning is slightly different than the things that we've heard. So here's what I want you to forget. Before I tell you exactly what's in this plan and how you apply for it. Here's what I want you to forget. Forget about what you thought or what you knew about the loan terms, the rates and some of the rules of forgiveness. So those things that we were told last Friday and throughout the week, forget everything that you've learned, okay? Because there are changes to the loan terms rates and some of the rules of forgiveness, but the calculation of the loan is still valid. The loan term in the bill was for 10 years, but treasury has changed that and we saw it this morning to two years max. So the original loan term in the bill was 10 years. Treasury has changed that to two years max. The loan rate in the bill was up to 4%. So the loan rate was up to 4%. Treasury has changed that to 0.5%. So that's right, that's a point, to 0.5%. And that's so important to know. Now, the biggest change in the forgiveness calculation is this.

The government did keep the ratio of full time employees during the base period.

But now, and this is really important, the amount calculated as forgiveness will only be forgiven if 75% of the money that you get goes to payroll expenses. So again, this program, the stimulus program, is called the ppp, the Paycheck Protection Program. And they have really focused this program on getting people to work and on paying people to go back to work. So again, 75% of the amount that you spend has got to go to payroll, to payroll expenses.

So let me share with you first and foremost, who can apply? Because there is a lot of money available and the government, I got to apply them. Like, this is really amazing. Like I said, I got up, really, I got up at 4 o' clock this morning so that I could read all this information, take notes, talk to folks so I could just break it down simply for you. And what I have learned is that the government has made this so easy for people to apply and to get funded. Like, I can't even. There's a part of me that can't even believe that this government, it feels more like private industry. It's really cool. Who can apply? And I want you to write this down. Starting April 3rd, which is Friday, small businesses and sole proprietorships can apply and receive loans to cover their payroll and other certain expenses through existing SBA lenders. So again, this is really important for people who have never gotten this kind of information. It's really important. Good to see. Al Manfray.

Many people think that what they're supposed to do is go and apply through the SBA for these programs. That's not the case. The way SBA lending works, even though they're managing this program, the way SBA lending works is the SBA works with and certifies lenders and there's 3,000 certified SBA lenders across the United States. The lenders are at places like your local bank. You may be able to go online and find some of these folks. These folks as well. So an SBA lender is the one that actually is going to take your, take your loan application. They're the ones that are going to process it, they're the ones that would approve or decline it. And then the government, the SBA backs the bank. And so if the bank loses money, the government is the backstop and helps to protect the bank's investment. So what you need to find is an existing SBA lender and there's a new program the government's rolling out to try and add lenders. And I will include a link to lenders in our group. Okay, so if you need that information, I'll apply a link to lenders in our group. So April 3, small businesses and sole proprietorships, that's Friday, can apply starting April 10th. And this is amazing. So this is one week from now, starting April 10th. Independent contractors and self employed individuals can also apply for and receive these loans to cover their payroll and other certain expenses through existing SBA lenders. So in the past, contractors and self employed people would never be able to qualify for something like this. But what's really cool is that the government has included contractors and self employed in this stimulus. You still have to go to an SBA certified lender in order to get the loan approved. And by the way, the whole country is going to go to these lenders and there's not many of them. And so I highly recommend that you go to the link. The link is in, in our group, you go to the link, you go to the website.

And when you go to the website, fill out the application. We're gonna, I'm gonna take you through the application here in just a minute. Again, I, I just wanna make this as easy as possible for you. This is the application right here. I printed it out. This is the Paycheck Protection Program application form. And this whole thing.

Is two pages. It's two pages to fill out and then there's some information on the back. So the best thing that I think you can do is go download the form, fill it out, have it ready, go and find yourself somebody who is a certified lender for the SBA and go and get your paperwork to them and get things ready, get things in their system. So when.

The government says go, you can be first in line. So again, April 3, for small businesses and sole proprietorships April 10 for independent contractors and self employed individuals. Now other reg, I told you the government's trying to add lenders quickly. Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program. Now where can you apply? Again, I just want to reiterate and go over this. Where can you apply? You can apply through any existing SBA lender or through any federally insured depository institution or federally insured credit union and farm credit system institutions. Super important. If you don't know where to go beyond that, go to SBA.gov for the Small Business Administration. Go to SBA.gov and you'll get a list of SBA lenders. Okay, so that's when you can apply. Where you can apply. Now how do you apply? Super important, how do you apply? And by the way, if you know anyone that wants to apply for government relief, for government loans or grants, will you please share this with them and share this with their group? Again, if you find any value out of this. My job is to try and get through the clutter and just get really clear with all of you on what is available so that you can take action right away. And the only thing that I ask is that if you find value to please share it with others so they can benefit from this information. Now where you can apply? All businesses. Now listen to this. All businesses, including nonprofits, veterans organizations, tribal business concerns, sole proprietorships, self employed individuals and independent contractors with 500 or fewer employees can apply. So this program is there for you. I don't want you to think that your business is too small. I don't want you to think that, you know, if you have, you know, if you have up to 500 employees, you're too big. If you're a solopreneur, up to 500 people that are working in your business, these programs are for, are for you. Now what do you need to apply? What do you need to apply? You'll need to complete the form, the loan application, the paycheck, the ppp. Remember this, the Paycheck Protection Program Loan application. You submit the application with the required documentation to an approved lender. I'm going to talk about what the documentation is to an approved lender that is available to process your application by June 30th. So you have from Friday, April 3rd until June 30th in order to apply for this.

Now what other documents are you going to need to include with the application? Keep in mind this program is all about payroll protection and the amount of funding that you get will primarily be determined by your payroll. So what the government is looking for is payroll documentation. They want proof that you employed people. So the payroll and payroll expenses.

One of the questions that I kept getting yesterday from people, and I appreciate all of these questions, I got a lot of these through dm, is do you need to look for other funds before you apply to this program? So with some lending programs out there, they require you to go out and look for other loans and for other funds before you apply to those programs. But with this program, the answer is no. The government is waiving the usual SBA requirement of looking in other places for funds, which is super, super helpful for anyone that's raising capital right now. How long will this program last? The program is open until June 30th. It's open until June 30th. But keep in mind, there's a funding cap of $350 billion. Now, if that cap gets exceeded and all of that money is placed again. Listening to Steve Mnuchin, our Treasury Secretary, this morning, he said that the government would jump on top of expanding, doing their best to expand the bill.

How many loans can you take under this program? This is another question that I was asked. I've been asked a lot this week. I didn't have a lot of guidance until now. You can only take one under this PPP program.

And what can these loans be used for? Super important. This is what you got to know. Here's what you can use these loans for.

Payroll costs, including benefits.

Interest on mortgage obligations incurred before February 15th of this year, rent under lease agreements in force before February 15th of this year, and utilities for which service began before February 15th of this year. So you are able to use this PPP program, this payroll protection program for payroll costs, including benefits, fits interest on mortgage obligations, rent under lease agreements and utilities.

Next, what counts as a payroll expense? What's going to count as a payroll expense? You got to know this so you know how to apply or if you qualify.

You also need to know this, by the way, because a lot of this money, in fact all of it can be forgivable, which means the loan that you get can be completely wiped out. It's like free money to help you to keep your business up and running, to help you keep people employed and working.

If you don't use the money for the things that I just described, then that money becomes a loan.

So what counts as payroll costs? It's salaries, wages, commissions, or tips. Salaries, wages, commissions, or tips. Employee benefits, including Costs for vacations, parental, family, medical or sick leave. It's state and local taxes associated with compensation. And check this out. If you're a sole proprietor or you're an independent contractor, pay attention to this.

Its sole proprietor or independent contractor. Wages, commissions, income or net earnings from self employment, almost consider yourself the employee in the business.

Did you hear what I just said? Think of yourself as the employee in the business. Now, how large can a loan be? It's a big question that comes up. How large can a loan be?

A loan can be for up to two months of your average monthly payroll costs from the last year. Okay, so this is as of today and again, this program, you can start applying on Friday. Loans can be up to two months for your average monthly payroll costs from the last year plus an additional 25% of that amount.

The amount is subject to a $10 million cap. So when you're taking a look at your payroll cost, it's up to a $10 million cap. Now, if you're seasonal, if you have a seasonal business, you operate ski slopes, things like that, you have a different. There's a tip of a different applicable timetable and you'll find that on the SBA's website. Okay, here's the big question. The big question is, how much of your loan can be forgiven? How much of your loan can be forgiven? You will owe money when your loan is due. If you use the loan amount for anything other than payroll costs, mortgage interest, rent and utilities over the eight weeks after getting the loan. So here's what the government's trying to do. The government in the PPP paycheck. I keep saying payroll Paycheck Protection program is trying to give you the cash that you need to operate your business, to pay your employees, to pay your mortgage, your mortgage interest, to pay your rent, and to pay your utilities for the next eight weeks, they want you to be able to turn the lights back on or keep the lights on over the next eight weeks and keep people working. So.

So.

You will owe money at the end of eight weeks.

If you use the loan amount for anything other than payroll costs, mortgage interest, rent and utility payments. And again, it's over that eight week period. So don't think of this as like something where they're like an investor, the government, and they're giving you, you know, they're giving you this money and you have the next year to figure out how you're going to spend it. If you want that money, all of that loan to be forgiven, you got to spend it in eight weeks. You got to spend all of it in eight weeks on the things that I just shared shared with you. There's a couple more things I want you to know.

There's some things around the loan forgiveness and the hiring. So first of all, number of staff, your loan forgiveness will be reduced if you decrease your full time employee headcount. So if you take this money and you don't bring everybody on but you, you decrease your employee headcount, the amount that you can have of this loan forgiven gets reduced.

Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for an employee that made less than $100,000. So they not only want you to keep people at work and keep paying them, but they also, they also want you to keep their wages as close to where they were before this crisis happened. So if you reduce or decrease salaries and wages by more than 25% for any employee that makes less than $100,000, the amount of, of this loan that would be forgiven gets reduced.

And rehiring, rehiring. You have until June 30th to restore your full time employment and salary levels for any changes made between February 15 and April 26. So basically what they're saying is we want to give you this money and we're going to give you a couple months worth of money. We want you to use it on payroll, we want you to keep your payrolls. What people are getting paid really close to what it is they were making before this coronavirus thing happened. We want you to bring people back that you had to let go as soon as possible. And that money is supposed to be used over an eight week period.

How do you request loan forgiveness? This is another question. I haven't been able to answer this, but this is one of those questions that people keep asking me and now I know the answer today. How do you.

Request loan forgiveness? You request loan forgiveness by doing this, submitting a request to the lender that's servicing the loan. Remember I said that the SBA doesn't give you the loan. A SBA qualified certified lender actually is the one that under, they give you the loan and the SBA backs it. So what you need to do is go back to that lender.

You need to go back to that lender and you need to provide the following documents. You need to verify the number of full time equivalent employees and pay rates as well as the payments on eligible mortgage, lease and utility obligations. You basically have to certify that you use the money in the way that you say or you said that you're going to use it. You got to certify that the documents are true and that you use the forgiveness amount to keep employees and make eligible mortgage interest, rent and utility payments. And then the lender has to make a decision on the forgiveness within 60 days. The government gives you this money, you go and use it on payroll, mortgage interest, rent and utilities. You want forgiveness, you go back to the lender and you say, here's the proof. Here's. Here's how we paid people. Here's all the bills that we paid. We want this to be forgiven. The lender has 60 days to actually forgive all or part of that loan. Your interest rate is 0.5%, not 5%. It's a 0.5% fixed rate. And the final thing here is that all payments on this loan are deferred. They're pushed out for six months. Interest will accumulate during this period. But your first payment, everything is pushed out six months.

Now, first of all, are you guys finding this helpful? If there is. If any of you are.

Considering, if any of you are considering going in and raising or getting money through these stimulus programs or you know somebody that is. Please share this. Please share this with your groups, please share this with your communities, because this is the information that everybody's been waiting for. This is the most important stuff that you need to know in order to get this money. Let's go get this money. Like, let's keep things moving in this country.

Couple important questions, more questions that have come up. And I actually just got this question through YouTube, so thank you very much.

Do you need to personally guarantee the loan? The answer is no. There's no personal guarantee requirement. Is there collateral required? Is there collateral required to get the loan? No, there is no collateral required.

Is there a prepayment penalty if I pay off the loan in less than two years?

No, there is no prepayment penalty or fee for prepaying this loan. When's the loan due again? In 10 years. We had heard 10 years last week with the stimulus bill when it was passed on Friday, but according to the Treasury Department today, it's due in two years.

Last thing I've got on this. And then, then it really gets serious because then I got to talk to you about the difference between the EIDL and this, the ppp. And if you select one versus the other, what it could mean, what it could disqualify you from. This is really important, really important stuff.

What do I need to certify as part of Your application, you're going to need to certify in good faith.

This is amazing. This is good faith to me. I mean, this feels like a handshake agreement between you and the government. In good faith, you need to certify, number one, current economic uncertainty makes the loan necessary to support your ongoing operations. So you have to certify, you got to tell them that current economic uncertainty makes the loan unless makes it necessary to support your ongoing operations too, that the funds will be used to retain workers and maintain payroll or to make mortgage, lease and utility payments. Second thing, the third thing you have to certify is you have not and you will not receive another loan under this program. And we're going to talk about that in a second. Next, you will provide to the lender documentation that verifies the number of full time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments and covered utilities for the eight weeks after getting the loan. So basically what you're saying is, look, here's what I pay people, here's my payroll, right? Here is what my rent, here's what my mortgage interest is. Here's, here's what my rent payments are, here's what my utility payments are. I mean, I would think you could probably just print that stuff out if you needed to. Super, super simple, super straightforward.

On loan forgiveness.

You will be provided, or you'll have to provide the sum of the documented payroll costs, covered mortgage interest payments, covered rent payments and covered utilities.

It's anticipated that not more than 25% of the forgiveness amount may be for non payroll costs. So let's talk about that for a second. So what you're doing is you are certifying with the lender that here are my payroll costs, here is my interest, here's my mortgage interest, here's my rent and here's my utilities. This is what you're saying. When you want forgiveness, you're going to go back to the lender and you're going to say, over the last eight weeks, here's the totals, here's the tallies, here's my payroll that I spent, here's the mortgage interest I spent, here's the rent I spent and here's the utilities. And look, the two match up. That's all you're going to do. By the way, have you noticed I have not talked at all about providing like multiple years of IRS statements? I have not talked about providing updated profit and loss statements, updated balance sheets. I haven't talked about any of that. It's amazing, honestly. It is amazing. So, again, this is a program that you are eligible for or may be eligible for. And the last thing is you're going to acknowledge when you go back to try and get forgiveness of this loan.

That the lender is going to calculate the eligible loan amount.

Using the documents you submitted and you affirm that the documents are identical to those you submitted to the irs. So here's what that means. What that means is.

If they ask you to provide tax documents, the primary reason that I'm being told by people that are very close to all this, the SBA or working with the SBA or, or with the sbdc, is that the purpose, the primary purpose of looking at the DAX documents is to calculate your payroll. And so you want to certify that what you're telling people that you file to the IRS around payroll is the same as what you're telling them today. That's it. This is all about payroll costs. So.

Instead of repeating myself, because that is a lot of information, I think I got to take a breath and I think I need a drink of water. But I hope that that was really, I hope that that was helpful. That was information on the EIDL program, the Economic Injury Disaster loan, and the $350 billion stimulus plan, which is being categorized. The loan is in the form of the PPP program, which is the Paycheck Protection Program. So what I just shared, if you're just joining us or you're just joining us lately, is I shared the difference between the EIDL and the ppp. So if you didn't see that and you want to know, you're going to have to go back and just replay the show I shared with folks on the PPP program when they can apply, starting April 3 for small businesses and sole proprietorships, starting April 10 for independent contractors and self employed, where they can apply, who can apply, what you need to apply, what other documents you'll need to include. I shared with you whether or not you need to look for other funding first before going to this government program. How long will this program last? How many loans you can make under this program, what you can use this loan money for, what counts as payroll costs, how large can my loan be? How much of my loan will be forgiven, how I can request loan forgiveness, what your interest rate would be, when you need to start paying interest on the loan, when is your loan due? Can you pay more? Can you pay your loan off early and not have a penalty? Do you need to pledge any collateral? Do you need to personally guarantee your loan. What you need to certify when you get this loan and ask for forgiveness. So that is really what the first, actually the majority of this program has been about today. Now, I want to share with you something else. This is right here. This is the application. So here is the application. You probably can't see it because of the lighting. So I'll try and do something like that. But here's all you need to know is that the part that you fill out here without attachments, just the part that you fill out is two pages.

So I don't want you to be concerned that you're going to get a, you know, 50 page loan application here from the government and feel overwhelmed. Instead, what I want you to do is get excited that the government has made this so easy for us. So again, it's two pages and then behind it there's a, there's some additional information. So additional information talks about the purpose of the form, instructions, and then there's some kind of legal disclaimer language in here as well. So this is it. This is the, Let me see if I can. Boom. You can see the application form. It's right here. The Paycheck Protection Program application form. And again, if you're looking for where to find this.

It'S simple. You just join the group. If you're not, if you haven't joined the group yet, just join it. It's a, it's a public group and if you go into the group and you scroll down, I have posted a link to all of this and it's there for you. My job, like what I'm trying to do is make this so easy for all of you to wade through and like to like sift through all the BS out there and the noise, like I'm doing that work for you. And I, I, my focus is just in this group, in this forum to give you what you need to know, when you need to know it, and share what you need to do and how you need to do it. And that is what this group is all about. So by the way, in this group, today I posted things, I think that this is important for all of you to know. You can not only find links to this, to this loan program, you can find link, this is the PPP program. You can find links to the economic disaster injury loan, the Eidl that's in this group as well. You can also find new links to tech resources that are available for free. So there are, there are so many technology companies right now. That are giving away their tools and their services for one, two, three months so that you're able to use those services and those tools.

In order to keep your business going. So it is all there it is in this group. By the way, if you know anybody that could benefit with that, would you please share this? Please share this show. That would be really super helpful. A couple more things, super important, like underline this right here.

This is really confusing to me. It took a whole bunch of phone calls in order to figure it out. And I had great people on the phone and I want to give a special shout out to two people to Tony Child, Tony, who reached out to me yesterday and we had a group call that was amazing. Kedma O. Formally a director of the sbdc. We talked three times last night. We talked this morning as well. To go through all of this, here's what I need you to know. Okay?

If you apply for the EIDL loan, the $10,000 quick relief loan, you may be ineligible for the PPP.

Did you get that? If you apply for that $10,000 quick relief loan,. You may be ineligible for the PPP.

And what will happen when you. I'm going to answer a bunch of questions about this with the eidl. What will happen is you will submit in the application your bank account number and your routing number so that the government is able to deposit the $10,000 into your account. Here's what I want you to know because a lot of people are really concerned about this this morning.

The government's not just going to put it in your account. So I don't want you to think that if you already applied for the Eidl loan that oh my gosh, I messed up. I didn't know what Scott sharing with me. I didn't know this information and I shot myself in the foot. I thought I was doing the right thing. Somebody told me to do this and, and I was wrong. They're not just going to put the money in your account. What they will do is they will reach out to you and they will verify with you a couple of things like your, your, your, your taxpayer id. They will verify your, your bank account information and ask if you want this loan to be, to be this loan slash grant to be sent to you.

Now.

I would talk to the person on the phone because they should be more educated than anybody on this. Okay? So what I'm sharing is the best information that I have from people that have been very connected. But you need to know that all of this is a very Fluid situation right now. All this is a very fluid situation, which is why it takes so much time to dig up this information from the right people.

You cannot use the funds in one loan for the same purpose as the other. You get that? So the purpose of the $350 billion stimulus Paycheck Protection program, the purpose is to get people back to work. And you're going to pay for payroll, you're going to pay for mortgage interest, rent and utilities. I believe, I believe that what I was reading earlier is that if you.

Spend 75% of the money that you receive in the PPP program on those things, then you could qualify to get a full. Have the whole thing wiped out. That's I read. I would check with your lender, double check with your lender. So if the PPP program is all about that, when the person contacts you about the Eidl loan, the economic injury disaster loan, and they ask you what are you going to use it for? If they ask you that question and you say, I'm going to use it for payroll, mortgage interest, rent and utilities, you may not qualify for the Eidl loan because you're doing the same thing. And there's not supposed to be, from what I've been told from people in these organizations and lenders, is that, is that you can't use it for the same. So you would disqualify yourself now.

If you have a different use of funds for the Eidl. So, for example, you're restructuring debt, you're investing in new technology, you are. You're paying for the cost of manufacturing or manufacturing materials. Those things could be seen as separate, which could enable you to potentially qualify for both. Does that make sense? Does that make sense? And so before accepting one, if you plan to apply to the other, make sure that you talk to the lender. And, and you're absolutely clear before you say yes to everything about what you're still going to be eligible and not eligible for. Does that make sense? That, I mean, that is like a huge, huge piece of the puzzle that's been missing. So I wanted to share.

All of that with all of you. Now, there's a lot of people out there, and I know this because of the calls and the emails that I get, that despite all this information.

Are going to be home today.

Really upset, really nervous.

Really concerned.

About how they're going to eat, about how they're going to feed their families right now, about how they're going to get through the day. I've talked to a lot of people that have been right on the edge of making some really bad choices over the past 24 hours.

Since it's the first of the month, a lot of people have become. There's like a new reel that has hit many people because rent is due today, typically, or their mortgage payment is due today, or maybe a car payment is due today, or car insurance is due today.

So there is this kind of like new level of anxiety that many people are feeling. And what I wanted to share with you is this. First of all, don't worry, don't worry about those things because it doesn't matter how they respond. Particularly if you're in a state that has been really affected and is labeled as a major disaster area, you're not going to get kicked out. It would be near impossible to get you kicked out or evicted from your place. And if you reach out to most landlords and you reach out to more. We'll start with mortgage companies. If you hold a mortgage. So you could be a person that actually you're paying a mortgage for. Either your own place, you'll go and you'll reach out to the mortgage company. And what I'm finding from lenders is they're doing four to six months in deferments. All you gotta do is reach out. Seriously, all you have to do is be proactive. I did this last night with a loan and I didn't even have to talk to somebody. I went to the homepage of the website. It said if you need relief from COVID click here, I click there. It had my loan brought up. After I logged in, it asked, would I like a deferral? I said yes. For how long? Within these time things and boom, it was literally point, click, click, and I was done. So you can do that on your mortgage. If you are, you have a mortgage on a place where you have tenants and you rely on rent. It's a lot of people out there. You rely on rents. Well, first I would work on getting the mortgage relief that you need and those deferrals. Second is if you're concerned, if you haven't heard from your renters or you're concerned that those people are not going to be able to pay or they've indicated that they can't pay. What I would do is I would be proactive and I would reach out to those people and I would ask them what they could do and try and get whatever you can in now instead of subtype of payment terms with those people. I would rather get less in a commitment than getting nothing at all but again, if you have protected yourself with the mortgage, at least that will provide some, some relief and some help. So then there's the rental income. If you're a renter and you just can't pay, I highly recommend, don't just avoid it and wait for somebody upset to call you. Reach out to the person you rent from and your landlord and share with them what you're going on and see what you can work out in terms of a deferral or some, or a partial payment or whatever it is. So everyone is on their toes right now. Everyone is leaning forward. And so I think that you're going to find you're going to get much more help than you ever imagined. I can tell you with my credit cards, my car, my utilities, everything. In most cases it was simple as point and click and boom. Money was deferred anywhere from two months to six months. Payments were deferred without any negative impact on my credit. So I don't want you to worry about that stuff. And if you have any questions, put them here in the, in the comments or shoot me a dm and I'm happy to help you with that. If you need a job. What I want to share is this. There are so many jobs that are available out there. That's right, Craig Cox. I have Cox also Cox. Postponed for two months, my auto loan. Postponed for, for three months.

Credit card, postponed one credit card for three months, one for two months.

So this is, this is what's happening. You just have to get on your toes. And I would say before you get on the phone, what I would do is I would go to the websites and the odds are many of the bigger lenders have set up something on their website because they can't take all the calls right now. And so you can do this automatically. You don't even have to get on the phone. Hey, also, just so you know, a lot of people use, use working capital loans, have working capital loans through, you know, it could be PayPal, it could be Stripe as an example and services like that.

If you have a working capital loan, several lenders have stopped taking out the percentage of your sale, the high percent to pay back the working capital loan. So I would reach out to your lenders and I would ask them if you have a working capital loan, if they're willing to stop doing that. I'll give you an example. I received something, being in the training business, a lot of payments come to me through PayPal and I had a PayPal working capital loan and PayPal sent me a. Sent me a.

They sent me an email and the email said that during this crisis, they were going to stop taking out the percent they take off the top so I would get full access to that cash that was processed. So, again, just a really important thing to know. I'm just trying to share with you how to be proactive and on your feet if you need to find work today. If you can't wait and you need to find work today, I want to let you know a few things. First, I'm going to share a list of people and companies and places looking for people right now. Second, I want you to know that if you go into our group, I'm constantly posting updates of companies that are looking for new employees. Third, I want you to know that many of these companies, because they're trying to hire so fast, and some of these jobs may be on the front line at grocery stores and things like that are in delivery. Some of them are paying signing bonuses. Some of them are paying higher wages than normal. There's a, there's a bump in what you get paid. And, and, and some of these companies have actually decided to pay daily, as opposed to weekly, twice a month or once a month. They're trying to get cash into your hands. They're trying to incentivize. They can't hire people fast enough. Who are these people? Here's some examples. Amazon hiring a hundred .000 people. Walmart 150,000 people. Target 9,000 people. Dollar General 50,000 people. Dollar Tree 25,000. Instacart 300,000. Lowe's 30,000. PepsiCo 6,000. Kroger 20,000. Pizza Hut 30,000.

Publix. Publix 10,000. Walgreens 10,000. Dominoes 10,000. 7, 11 20,000. Papa John's 20,000. Microsoft 4000. Outschool, they hire teachers 5,000. Slack 200. CVS 50,000. Albertsons 30,000. Blue Apron 300. GE Healthcare, an undisclosed amount. And Zoom Zoom is hiring an undisclosed amount of people as well.

There are some. There's a lot of jobs out there. And if you need cash, don't let your pride and don't let your ego get in the way. That's the worst thing that you could possibly do if you need cash. The purpose of being in business today is to be in business tomorrow. Pause those other things and go and get a paycheck. And here's the thing. I can tell you that getting a paycheck is going to create a sense of stability and calm, just knowing that you have money coming in right now. So you've got that. And maybe you've applied for unemployment, maybe you've applied for government assistance through the EIDL program or through the stimulus relief program.

So you've got that stuff to look forward to. And, and.

And this too shall pass. This period in our life is going to pass. This thing that we're going through right now together is going to end one day. So right now, the purpose of being in business today, our purpose of doing what you do today is just to get to that is just to get to tomorrow. Okay? That's all we got to do. Don't worry about where you're going to be in a year or six months. If you're in a really tight spot, worry about how you get to tomorrow. And those jobs, the relief that I've shared with you today, a whole bunch of ways to find capital that could be something that really helps you to.

Create stability. There's a great expression that one of my friends, Dave Meltzer, used to always use. He used to say that the legs feed the lions, the legs feed the lions. And here's what that means. What that means is in the jungle, the most powerful hunter, the most powerful hunter in the jungle is the lion. And what fuels the lion, its strength comes from its foundation. It comes from its legs. And for all of us, for business owners, for entrepreneurs, for micro businesses, for independent contractors, sole proprietors, for mamapreneurs, datapreneurs, for us, cash, our foundation. Cash is our oxygen. And so if you don't have that foundation right now, that income foundation, there's a bunch of jobs I just shared with you that you can go and apply for. There are a bunch of places that you can go and get government stimulus. I encourage you to watch this program again, share this program. Because there is so much meat in here. There's so much meat in here to help people find cash today.

And use this time while you're at home, use this time.

I have another friend, Mark Moses. And Mark used to do this, used to do this, this exercise for this client. Incredibly crazy, successful entrepreneur. What he used to do is he would go into a client meeting and he would have. He did this a couple times, and he would have two entrepreneurs and they were partners. And he would walk in and only one partner knew of what was going to happen. And he would say to the other partner, I just talked to so and so. And what so and so shared before this meeting was they've made a decision. They made a decision that they're going to leave. They're going to leave this partnership and they're going to go right across the street. They've already leased a place and they're going to start up a business just like yours and they're going to compete.

And the one partner, usually they hold their breath. The partner is usually the partner that is the most stubborn. It's the person that's most locked into what they're doing, the way they're doing it. Then what he does is he reveals that all of it was a setup for an exercise taking place that day. I encourage you to do the same thing with yourself and ask yourself, if you were going across the street and you were going to start your business over today, given everything that we've learned about the world and the way it's changed, what would you do? What would you look? What would it look like? How would you execute? How would you manage a team? Where would they be? Would they be in that big office? Would they be at home? What tools would you use? Would you leverage video conferencing more? Would you leverage it less? Would you alter and adapt your products or services? Like what would it look like? And if you rebuild and you do that rebuild from the ground up, it's amazing the way you can adapt and innovate and transform your business. So you come out of this frickin period so strong that you crush the competition. You crush all the people at home. They're sitting there in fear, paralyzed and not moving while you're sitting at your desk talking to your teams, talking to your customers, figuring out how we get through this thing stronger and how we get through this thing together.

When I was in college, I'm going to wrap here. When I was in college, in my junior year, I got involved in this terrible car accident, fraternity trip down in Mexico. Two brain hemorrhages.

Getting better really sucked. I had to drop out of school for a bit and I couldn't do much of anything. I couldn't really read, I couldn't watch tv. Everything, all the moving pictures, reading, everything made me sick. I picked up a habit. I started listening to motivational books on tape. And as I got better, I started to develop a library. And this is people like Tony Robbins and Zig Ziglar and Les Brown and Brian Tracy and Dennis Whelan. Oh, I love these people. I love these guys. And what did I do? I decided when I got better, I wanted to go back to college and finish and I wanted to work for one of those people as an intern. And the first person I applied to intern was for Tony Robbins. And instead of an internship, the company, Mike Hutchinson, offered me a job. And so I ended up not finishing school and I went on the road. And I remember about a year into it, I was up in Seattle and we were doing. Tony had a live event one day and we were having lunch and I was sitting right next to him and I said, tony, I said, I don't know if you remember how I got to you. And I told him about the accident, what had happened. And I said, but it's crazy. What it did is it led me to you. And I said, by being around you, it's not really about you. It's about all these amazing people. What's happened is by being around all these incredible people, it has totally opened up my mind and my sense of what's possible. And I went on and Tony put up his hands, got big hands, and he just stopped. And he said this. He said, scott, I always want you to remember in life and business, you have good days and you have bad days, but you don't know which is which until sometime down the line, because you don't know what you're going to make of the experience.

You don't know yet what you're going to make of this experience. But I got to tell you, you're the person that's going to determine what you make of it and what it means to you going forward. You guys have an amazing day. We'll have a lot to talk about tomorrow. Craig, I'm going to get to the scams tomorrow. We have a lot to talk about tomorrow. If you find value in today's show, please share it. Please share it to all of your groups, your people. Today we talked about funding and fundraising and what you need to know in order to get cash today to help you to move forward. Have an amazing day and I'll talk to you tomorrow. Bye. Bye.