Scott Duffy interviews Kedma Ough : A complete rundown of Business & Personal Stimulus Bills, Ep. 14

Good morning everybody and welcome. This is Scott Duffy and I want to welcome you to another day. This is episode 15. I can't believe we've been doing this for the last two weeks of what Now An Entrepreneur's Guide to Managing Through Coronavirus, Recession and Uncertain Times. You can come and join us every weekday, Monday through Friday at 10am Pacific Time. I'm broadcasting live here across Facebook, YouTube, Instagram, Periscope and. Did I say YouTube? Where else are we? So you can, you can again join us live every single day, Monday through Friday. You can also catch this show on Dash Radio. You can download the podcast and you can hear the replays throughout the day. I want to welcome all of you. We have got such a big day today. We have got such a big show. I have been up all morning long. I have been on the phone talking to my friends, my network, my colleagues to learn everything I can about this stimulus package that was passed by the Senate last night. It is now with the House. I actually printed it out at 4:30 this morning. It's right here. I've got it all right here. And I have got great information for you today with regard to what this stimulus bill means to you. As a business, as either an SMB, as an entrepreneur, as a solopreneur, as a mamapreneur, as a datapreneur, it doesn't matter. As a, as a gig economy worker, there's something in this plan for all of you. I also have updated information on how we can expect to receive cash from the government, not through our business, in a business loan, but personally. We've heard about the government issuing checks to people and we've heard about this for the past couple of weeks. It was an idea. Well, it is really soon, really soon. We expect this to be passed and.

Made law and we have all the details for you. And again, we have so much to talk about today. And I can't do this alone. I need all of you. And so as you jump in to the stream today, if you're watching live across social media, Facebook, you're on LinkedIn, you're on YouTube, you're on Instagram, you're on Periscope. If you could drop in your name for us, please. You can drop in your name, the industry that you're in and maybe the biggest challenge that you're facing today so that we can try and address that during today's show. And also we have got an expert coming on today. My first guest for this program, Kedma O is going to join us in Just a bit. And Kedma is a former director at the sbdc, the Small Business Development Council, which works side by side with the sba. And Kedma was one of the top people in the United States helping small businesses find funding, businesses just like you to find funding not only through government programs like SBA loans, but through grant programs both public and private. Kedma, she's a best selling author. I think her last book was published by McGraw Hill called Target Funding. She's going to be on here today and she is going to share a wealth of knowledge and a number of different resources that you can utilize to go and find cash for your company today. So again, I'm so excited to have all of you joining us. Please make sure to drop in your name, your industry, the biggest thing that you're concerned about, biggest challenge today so that we can customize this show for you. And again, we have a lot to discuss and I'm going to wait just another minute or two here as this stream propagates and we get more people who are watching us live. And I see Kedma has just joined me. She's kind of like in the virtual green room right now getting all ready. So I'm so happy, Kedma, to have you here with us to, to kick things off again. I want to reiterate this show today is going to be all about you and it's going to be all about how the Senate's bill that passed last night, that's with a house, will affect you as a small business and a small business owner. And by the way, the definition of small business and who's going to be helped by this bill is pretty doggone broad.

For most of you that probably don't know. The government classifies a small business as a business that goes up to 500 employees. But most companies in the United States, over 80% of businesses in the United States are sole proprietorships. They're solopreneurs. They're people like so many of you that are joining the stream today that are working from home, that may not have had access to certain kinds of government programs in the past. Well, everyone's included in this bill. And.

I'm just so excited. I'm so excited because I take a look at some of the news that's out today and you know, it's concerning about coronavirus and the negative impacts it could have on the economy. But then I hear about what the government's doing and in 2008, 2009, when we went into this great Recession period, the government The House and the Senate, they passed a bill and it was a bailout program, a bailout bill. And what that bill did is it rescued big businesses with very little oversight. So it gave big businesses a ton of cash, but it didn't really mandate how that cash was to be used. So that those big businesses, they took that cash and they used it for things like stock buybacks for their companies. They used that cash to pay management bonuses. So we would hear in 2008 and 9 about leaders at Goldman Sachs and these other big companies that were bailed out getting bonuses in the tens of millions of dollars. What's different about what the Senate passed last night, which we expect the House to pass today, is this plan is for you, it's for SMBs. It is not a bailout program. It does provide stimulus, and we're going to talk about this in just a minute in more detail, but it does provide stimulus to big industry. But what this does is it really watches out for people that are small business owners. This plan, that it's the driver that's on the corner, that it's the person that owns the coffee, it's the person with five employees or 10 employees, it's the person that's working from home, it's the solopreneur, it's the gig economy worker that really is the engine that drives this economy. And there are ways for all of you to get cash from the government today. So we're going to talk about that. First things first. Every morning, start out with three things that you need to know. And like I said, there's so much to know today that we've completely kind of, we've broken that three thing rule. But again, the Senate did pass the bill last night. The goal of that bill was to get people back to work and in the interim between now and the time they are back at work to provide stimulus and to help them bridge that period. The bill's nearly a thousand pages. I have all 880 pages printed out here last night. There's a statistic that came out which many of you may have seen this morning, that unemployment, 3.3 million people filed for unemployment over the last week. And that is the biggest, that is the biggest number of people that have ever filed in history. And to just give you an example, that far exceeds the number of people that filed for unemployment in a single week back in 2008, 2009, in fact, that is four times the previous record number, which was 1982. Now in California.

It'S interesting, in California I'm in Los Angeles today and last night our mayor got up on stage and he talked about President Trump and how President Trump has set a target of Easter being a time that America is back at work and easter is on April 12th. But what our mayor shared is that the worst of this is just starting to get to the west coast and hitting Los Angeles. He shared that based on the data, LA's infection rate is six to 12 days behind new York City, which is pretty concerning.

And he said that we're going to be in this stay at home kind of place that we are Today, not until April 12, when President Trump wants to open the government and wants to open business back up. But he said that in Los Angeles we're going to be in this position for at least the next two months and prepare for a much longer period. His concern was the loss of life and he's so serious that we need to stay at home that for businesses that don't comply with his request, they'll be cited. And then the city is prepared to turn off their electricity and their other utilities, their water, to make sure to ensure that they can't go to work to operate their business. So that's some pretty serious stuff. The Pentagon last night order to halt to all troop movement around the world. And again, the rate of coronavirus increase is. Well, it's increasing across this country at an exponential rate. So, you know, when we take a look at some of the medical stuff, you know, it's not much different than what I've been telling you or sharing with you over the next few days. But there is good news. And the good news today is this. We are increasing our test capacity. We are increasing manufacturing for masks, gloves and ventilators. The new numbers that are out of what's being manufactured and distributed is super, super encouraging. And by the way, just to give you a sense of volume, when you hear that there's a shortage of masks as an example, most of us don't realize, like how much volume how many masks a hospital goes through in a busy day. In New York, the average hospital that's dealing with coronavirus virus patients needs 70,000 new masks every single day. 70,000 masks a day and the market's up. If you take a look at the Dow Jones, the market today, it has been up the past couple days. But I don't want you to get fixated on that and I don't want you to think that that means that the economy has suddenly changed. And the reason is that Dow Jones isn't a representation of all of the stocks that are being traded. The Dow Jones is an average of 30 stocks that were chosen by the Dow Jones. And Boeing is a company whose stock has gone up significantly over the past two days. And that's what's really driving this growth in the market over the past couple days. So those are updates, three things you need to know and some of the pockets areas where there's some real positive things happening right now around coronavirus and in the economy. Now, let's get right to it. Let's talk about stimulus. Before I bring Kedma in, I want to share what it is that we know. So first of all, on the personal side, we've heard about the government writing checks and distributing checks to every person in America. Let me tell you what we know today. Last night and vote, it was 96 to 0 past 96 to 0 in the in the Senate. This $2 trillion stimulus plan, which by the way is the biggest economic stimulus in U.S. history.

Directs payments to all taxpayers in the United States. So pay attention to this. The government will be sending money and directing payments to all taxpayers in the United States. And this starts at $1200 to the individual and is $1200 to an individual making 75,000 up to $75,000 a year and $1500 for married couples. In addition to that, there's an additional $500 per, per child that they'll be sending. So again, let me just summarize that one more time. $1,200 for an individual earning up to $75,000 a year or $1,500 for a married couple that's filing jointly. Now here's the thing. When you earn more than $75,000, the amount of stimulus that you would receive starts to ratchet down. It phases out, and I believe it phases out for individuals that are earning more than $99,000 a year or $198,000 that are filing jointly. And we're going to ask Kedma more about that in just a minute. Unemployment. So for anyone that has filed or is planning to file for unemployment, there's good news here. Unemployment insurance in the past has been good for 26 weeks, but that has been extended for 13 additional weeks. So again, unemployment was 26, extended for 13. Now you can collect unemployment insurance for, for 43 weeks. So that is a big win for anyone that is looking, that's anyone that's looking for work or recently unemployed. Now, how much do you get from unemployment?

That number is different from state to state State to state. I know in California, the maximum amount that you can get per week is $450, which means $1,800 per month in unemployment. Now, in this stimulus plan, what's happened is I think this is a really smart move. What the Senate did is they looked around and they said, because every state is different, this is going to be really hard and not only to administer, but for people to understand what they qualify for. So instead, what they did is they created. I believe KEDMA will talk about this more of a universal unemployment ceiling. And that ceiling has raised from $450 a week to $600, an increase to $600 a week for people all across the country. Doesn't matter where you are. So six times four, $2,400 a month. So that's a big increase, $1,800 to $2,400. Now, what do you need to receive this? What you need is a Social Security number, not to be a dependent of somebody else. By the way, this is also available to people that do not have income. So if you were just recently unemployed, like in the past, if you were let go as an example, you could file for unemployment. What this bill shows is that even if you don't have income and it looks like if you weren't employed by somebody else, but you're not generating money right now, you can file for these unemployment benefits. Now, we should be getting details hopefully today as we get more details where to apply things like that, we'll post them in the group. How long is it going to take to get the money from the government stimulus? Well, unemployment can typically take a couple of weeks to get. And what I can tell you is the personal stimulus that I talked to you about just a second ago offered by the government, that stimulus, the $1200, the $1200 checks for people earning up to 75,000 a year. Those checks, they believe, will take three weeks before they can start issuing them. Really important to know. So we're talking about this stimulus the government is saying you're going to see in the news, they're going to send you a check, but it's not going to happen tomorrow. It's going to take about three weeks, according to the treasury today, Secretary, to get to get those checks to start to be sent out. So again, if you can apply for unemployment, I highly recommend that you do it if you need the cash.

There are several people that have texted me, they've emailed me, they've called me, people that never thought they would be in a position where they would need a benefit and they're not sure whether or not to take it. Some of them are embarrassed, some of them feel there's a pride thing, there's an ego thing. Look.

We all as entrepreneurs, as people, we all have highs and lows, we all have ups and downs. This program, unemployment was created by the government to protect us and we all pay into it through our taxes. I, in the past, after 2008, 2009, I went on unemployment when I lost everything. And so I highly recommend that if you need it to go ahead and file for unemployment and don't wait because it takes some time. So go ahead and do it today for businesses and we're going to. You know what I'm going to do? I'm actually going to bring Kedma in right now and I'm going to walk through my understanding of how businesses are impacted by this bill. But Kedma is really the expert. So let me see if I can do this. I haven't brought someone onto a stream yet so I'm going to make her like her mic live. We're going to add her to the stream. There she is.

How you doing?

So good. I'm just listening and I'm just, I'm in awe of all, I mean 880 pages you printed out. I thought, oh my goodness. So yes, it's a lot.

Yeah.

It'S a lot. And I didn't get where anywhere near. I was just skimming through and I was, I was just looking for pages that impacted small businesses and talked about small business. So let's talk about business and if I get anything wrong here, Kedma, please just jump in again. Kedma, for those of you who are just joining us was director at the sbdc, the Small Business Development Council that works side by side with the sba. Kedma's job, part of her job was to help small businesses entrepreneurs.

Solopreneurs, momopreneurs, datapreneurs, it doesn't matter to find capital to either teach them how to get loans from the government or what Kegma is really amazing at is helping people to find grant money, money that they didn't even know existed and helping them to basically package themselves, apply and win that and win that capital. And Kegma has a book out, I want to mention it, Target Funding. It's published by McGraw Hill. Go pick it up on Amazon if you're looking for capital because it is an incredible step by step guide and I use it as a textbook for people that I work with as well. So again, kedma, OUGH and target funding. Let's talk about businesses.

Yes.

So what I love about what I've seen from this Senate bill is it is not bailing out big business. It's not bailing out big business like it did in 2008, 2009. It recognizes that the lifeblood of this country is, is small business. It's people like you and me instead for big business, it's providing assistance to aerospace, to airlines, to hospitality. They're not bailing out the cruise industry, which I thought was, was pretty interesting. This bill recognizes that. It's the coffee shop, it's the dry cleaner, it's the person at home that's a solopreneur, it's the guy that's got the restaurant, the 10 person company. Those are the people that we really need to help right now so distressed companies can get assistance through this bill. Now let me tell you Kendall, what I understand here. So the total bill provides $425 billion of funding which is going to be controlled by the Federal reserve. There's additional $75 billion that's added for specialty industries like the airlines, the hotels and things like that that we really need to support. Right Now. There's another $17 billion on top of that for crucial wartime type of businesses and industries. So these are things like General Electric and Boeing and places like that.

Now like in 2008, I've talked about this before. The government bailed out the big companies. There were buybacks, bonuses. Those big companies did nothing to bring back their employees. But this bill is completely the opposite. It incentivizes companies. It requires companies to rehire their people. And so, and what I also like about this bill, and I'm sorry, I keep looking at my notes, but no.

You need so much here, so much information. You, I thought you were going to memorize all this.

Oh my gosh. It's, it's like I said, it's insane for anyone that I, I printed this out at 4:30 in the morning and I've been going through.

No, we need to because it's so important.

So, so what I love is I learned that this bill requires disclosure. So in 2008, 2009, we didn't know, us taxpayers who were paying for this did not know where the money was going. We did not know that people like CEOs at big companies that were taking in all this money could use that money to pay themselves big bonuses and stuff like that totally didn't make sense when their companies were being rescued. This bill provides total disclosure oversight, and there's even an inspector general that's being put in place to oversee how this funding works. And there's big aid for hospitals, which is so important right now. So this is a $350 billion loan program for small business. Okay.

It bans, it bans the president, it bans Congress, it bans the families of the President and Congress from benefiting in any way from this. So I love that, you know, there weren't incentives here that were put in by the Senate or the House where they could benefit. So this is really for the people, okay, the sba. And correct me if I'm wrong, wrong, Kedma. The SBA typically issues about $25 billion, backs $25 billion of lending every year. This new bill adds to that $350 billion. So the total amount of money that we can get access to as small businesses is $375 billion. Now, for those of you who don't know, you've never applied for a small business loan. The SBA doesn't like, do the loan. What happens is the SBA works with about 1800 banks, credit unions, and other financial institutions that are SBA approved lenders. Those lenders will process your loan application. They'll effectively determine, I believe, whether or not you get the loan, and then the SBA guarantees the loan. That's what happens. Okay, so it's the same thing, the same framework. The framework for the actual loan for this 350 billion is the SBA's 7A program. Okay. Right. That's the primary loan offering.

Correct.

It's a partnership between private lenders and the government. In the same way I just mentioned the local bank, they process the loan and they approve it, and then the government backs it. They guarantee it.

These loans, which is different than the way it's worked in the past. These loans.

Aren'T just for bigger companies, they're for smaller companies. Self employed can qualify for the small business loans under this bill, and gig economy workers can apply for loans under this bill. Now, the loans come with.

Certain measures, and if you follow these measures, you can get loan forgiveness. Yeah. So what this means. Yeah, Kenma, correct me if I'm wrong here, so what, what this means is that if you use the money that you receive to retain or rehire workers.

Correct.

To do things like pay your rent or pay your mortgage, to pay your utilities. If you do that. And I believe. And we don't know the number yet, but I believe at a.

At a, you have to spend A certain percentage of the money to do those things.

For a specific amount of time.

For a specific amount of time. Then the intent of this bill is that all of that money, the loan is forgiven.

Correct.

You never have to pay it back.

Correct.

So it basically works like a grant. So Kidma, this is almost like free money.

Exactly. It is free money, except with a grant, you submit what you're doing and the grant then gives you the funds with a forgivable loan. It is written as a loan. However, you must complete the criterias and then show that those criteria were met. And then the loan is forgiven.

And then the loan is forgiven.

Right. So it is a grant, but they won't say it that way.

I see. Gotcha. This also raises, this program raises the maximum amount of money that you can apply for, from 5 million to $10 million. And many of the past collateral requirements.

That you had to put up to get your loan are waived in this program.

So before I'm going to turn this pretty much over to you, Kedman, just a second, a couple more things for all of you that want to apply for this.

A couple, everyone is going to try to apply for this. And so what we, what I need you to do, and we're going to talk about this today, is if you want to apply, we need to get your loan package ready to go. Now we're going to want to start and we're going to give you the framework, all the things that you need, everything that you need in order to submit your loan package. This is going to be super important. Important. Nobody is more of an expert because she did it than Kedma at this. So we're going to talk about that. You also have to recognize that our government in our system is not set up for this. So even though the bill could pass the House today, so the Senate last night, the House today, let's say it gets done by the end of the week. It's not set up for this. An emergency loan forgiveness program. We've never done this in this country. So even though the secretary, Secretary of Treasury says that by the end of next Friday, he wants to have the mechanism in place to make this a really smooth process, and he wants to create a system. So if you apply for a loan and you're approved, there's no waiting time from the day you're approved, you actually get the money the same day. The reality is this is government and it probably will take more time. But what we can recommend and the counsel we can provide is that you need to get your Stuff ready, you need to get it in order and be ready to hit send so that you're at the front of the line. The last few things.

Last few things.

Trust and wills. So this, so what I'm going to talk about now.

Because you're doing all of this work right now and for many people, putting together three years of tax returns and the information that's going to be required for you to apply for a loan that's backed by the government, it's going to be comprehensive. And because it's comprehensive, this is a great time for you not just to apply for this loan, but also to get the rest of your business and personal financial house in order. It's a great time to do this. And so I really want to recommend, now is a great time for you to take a look at things like your trusts, your wills, your medical powers of attorney. We have people, they're in this thread. I can recommend people that can help you do this. Do it virtually over a zoom call. Their entire business has shifted from in person meetings to over zoom. I really. And by the way, I saw a cartoon today.

And the cartoon said I don't think it was China. That is the cause of coronavirus. I think the cause of coronavirus was zoom.

We have become a zoom culture, haven't we? Holy cow.

So true.

So again, I want to recommend before I go over to Kedma here that your trust, your wills, your medical powers of attorney, if you have relatives that are over the age of 60 that could be, are the most impacted by coronavirus, we got to make sure that they've got a trust in place, that they've got a will in place. This is a great time to do it. It's a really simple process. It doesn't take much time. You need to make sure that there is a medical directive, a medical power of attorney in place. So if somebody is sick and they need someone to make decisions for them, that this is what you, that you have all of that in place. All right. I gotta take a breath. I gotta have a sip of water.

Amazing.

And Kidma, by the way, if any of you who are watching find any of this information valuable, I ask you to please share this with your tribe. Share this we are broadcasting this program over the Dash Radio network. This is being broadcast nationally. It will re air so several times a day. You can download the podcast. You can find us live every single day. I'll be live 10am to 11am Pacific Time on Facebook, on YouTube, we're on Twitter, we're on Periscope we're on LinkedIn. I guess we're all, well, we're all over social media. Please share this information if you find it valuable. I really appreciate that I'm doing this. I'm collecting this information. I'm trying to bring you the best information I possibly can because I love entrepreneurs. I really believe that it is people like you and me, it's, I appreciate the government's help right now, but it is not the government, it is entrepreneurs. We are, we are the ones that figure out what the biggest problems are. We figure out how to solve them. We figure out how to get them financed. And so I feel that now more than ever, we need an army of the most well trained, well financed, most badass group of entrepreneurs we've ever had. And so I am doing, I'm giving you everything I have to help to put you in that place. If you find any value. I'm not asking for anything. Just share. That's it. KADMO Director FORMER Director, SMALL BUSINESS Development Council first, can you please explain to everyone how the SBDC works with the SBA and your experience, your experience working with small business owners to get them funding, not just through the government programs, but also through grants. And then we're going to talk about what we're going to talk about. I'm going to ask you how people listening can best prepare themselves to have the best and most highly financeable loan package or grant getting package, how they can do that, what resources, all that stuff. I'm not the expert. You're the expert. Ready, set, go.

Well, first of all, Scott, thank you for your service to small businesses. Because, you know, many of you, if you've ever seen me, I traipse around with a cape. And really the cape represents that we need superheroes and more than ever, we need them right now. And when we talk about why does the federal government even care about us, right? Why do they care about the coffee shops or someone who's home, you know, doing some online social media? Let me tell you why they care. Let me tell you why it matters. Let me tell you why they decided to put all of this in to support us. You're going to be shocked, Scott, but I'm going to just lay it out here. 99.9% of all businesses in the US today are classified as a small business. We're talking 30 million businesses. For them to not recognize that, they might as well close the United States of America up and go somewhere else, that is how powerful it is. So every single person listening here we are the power of America. And so we need to just band together and work together. Secondly, let's talk about how SBA works and how SBDC works. Okay? You need to understand that the Small Business Administration is a very critical component of for how governance is done. But the SBA does it through three major arms. The first is the Small business development center. 10,000 advisors on the ground across every single state that support technical support. I managed as state innovation. I managed based in Oregon. I also managed the innovation piece, and I was on the ground. Now, I've been on and off with supporting SBA for 15 years. The second program is Score Service Corporation for Retired executives. These are retired executive and business owners who want to give back, and they do that in the terms of advising and support. And the third arm is the Women's Business Center. I also was a director at the Women's Business Center. So two out of three I managed and I understand the deep down behind it. And the Women's Business center essentially supports women. And so SBA is the governing body. To your point, SBA does not give the funds. It is actually the lenders that do. To your point, SBA does give loan guarantees. However, Scott, we need to go a little deeper into the stimulus package to see what does that guarantee look like. Typically, the loan guarantees have been up to 90%. So there is some risk for business bankers to work with business owners. They may add up to 100%. We're going to have to see what that looks like, but typically it's not 100%. I also want to make it very clear here, the loans that we're talking about does not forgive the requirements. So we're going to talk about what the requirements are because you said, let's get our documents together. And what I want to make sure is that we don't set you up to get super excited about something.

And then not receive it. So we're going to talk about other options available to you as well. The other thing I want to make clear is we're not even thinking about the other side of the fence. But I want to call this out. People have been asking me, if I go after these loans, Scott, how is it going to affect my credit score?

That's a very valuable conversation to have. And what I'll tell you is, at this point, can I just jump in for a second? Yeah, absolutely.

This is amazing, because during crisis, what tends to happen is we tend to go and we ask ourselves two questions. What does this mean? And what do I do? And we look around everywhere to get people's advice. And there's two ways that you can learn advice. Advice comes from people that may love you, may support you, all that kind of stuff, but they don't have any direct experience in this thing. Right. They don't have any direct experience in it. So anything they give you is just an opinion. Counsel comes from people that have actually walked in your shoes. They have literally experienced. They've done that thing. It's really important you seek counsel and not advice today. Kedma, I never even thought about how this affects your credit.

Yes.

And so again, it's that that is the reason that you want to be talking to people who can give you counsel. So I'm going to get off. But again, just such an important distinction. Go.

Thank you. Thank you. And to your point, the reason I'm able to comfortably share this is, Scott, I was very much at a dark place many years ago where I had to file bankruptcy. You know, I talk about this in my book 2001. I was left with no option, had to live a terrible relationship, filed bankruptcy, and I found myself in a dire scenario which took me on this journey for 18 years to figure out how to play the game.

Right.

So this is real stuff. And I've been in people's shoes and probably in worst shoes. I like to say heels because I like to wear heels, but worse heels than other people. Now, let's just get back to the credit. So very important. The Senate bill has introduced a bill right now. So we don't know how that's going to play out, but it's going to prevent negative information hitting your credit for up to four months. So it doesn't mean it's not going to hit your credit as far as I'm aware, but it's going to give you that time you need to get what you need before the credit company says, Scott is not a good deal right now. Right. And so I think the way the bill is set up, they're setting it up to prevent you from not getting it because the last thing you need is to try to go after these loans and then they pull a credit report and say, sorry, your debt to income ratio is not qualified. Of course it's not, because you just got laid off. And so I just want to make sure that we're, you know, don't go after something you don't need. Don't go after something you don't need if you need it. Absolutely. But just know that there may be some impact in your credit score as a result of it make sense. Okay, let's talk a little bit about a little bit more about the sba. I absolutely. You talked about the forgivable loan. The forgivable loan is about job retention.

They want to make sure that you're retaining those employees, because employees, to your point, this is unprecedented. The amount of people who are unemployment, they want businesses to take back those employees. On top of that, they're going to give a 50% refundable payroll tax credit on worker wages. That again, anybody who's 500 employees or less, you're going to get that 50% on top of everything else just for keeping those employees. So that's the number one thing to remember, is they're doing everything they can to retain. Now, before I go into any other options, I want to talk about what this actually really looks like. At the end of the day, the SBA is offering a low interest rate, but it's still a loan. It's up to. It's 3.75% for small businesses. Your repayment terms are up to a maximum of 30 years. Now, why this is so important, Scott, is this. I am working with every single person on the ground to look at where grants and loans are coming. If I find a grant for you that is less than 3.75% and you need less than what SBA's requirement, there is no reason why you would go after the SBA loan. So if you're sitting in California and you're saying to yourself, as a result of the situation, the coronavirus has hit my business and I really need $70,000.

And I'm able to find an interest rate that's less than 3.75% in your state to give you that 70 or $75,000, you don't even have to think about SBA. That's the thing you need to be aware of. Just because everyone is running to the store doesn't mean you have to run to that store.

The question I have is whether it's the SBA or it is another loan or type of offer that we're trying to qualify for. Can you share what. Let's use the SBA as the benchmark.

Yes.

What we have to have prepared in order to make that request, if we're going to go to a bank that's going to finance us or what do we need to have? And I want to know, where do we find an SBA accredited lender?

Okay, two things. So SBA credit lenders can be found on SBA.gov or you can go to your online, you can literally key in SBA approved lender and then you key in your city and state. SBA approved lender, Los Angeles, California. Now, as far as the SBA 7 loan, I'm going to tell you some of those criteria. However, I don't want people to panic because what happens is, is I'm going to now tell you the other side that people don't want to hear. And then they get nervous and then they think, gosh, Scott, how the, how am I going to even do this? You're asking me to apply and now I have to put all these documents together. So let's go through it. For an SBA 7 loan, you're going to have to fill out a loan application that they're going to make it as easy as possible if you go in person. If you do it online, however it is, there's going to be an SBA loan application. You're also going to have.

Edmund, where can we find an SBA7 loan application? By the way, for all of you watching, we'll put a link to it in our community. But where can we find this?

This would be on SBA.gov and you will have, you can get a list of the loan documents you're going to key in. SBA 7 loan loan documents. Okay. All right. You see, it's all about terminology. If you don't have the right terminology, you won't look at it. So loan criteria is different than loan documents. So you're going to be looking at loan documents. And again, we'll provide this to you, Scott, so people don't have to scurry and find it. They're also going to look at your personal financial history. That's your SBA form 912. You don't have to memorize this. You just need to know they're going to look at your personal financial history.

Let me ask you about that.

Okay?

When they look at my personal financial history, does that mean that they look at my credit score? Does that mean they look at my. They do. They go into my bank accounts and see what balances are.

They're going to look at your credit score. They're going to look at your, your, your, your, your credit history. They're going to look at what we call your character. Now, your character isn't, you know, how you show up and you know, to a business meeting. Your character is, are you credit worthy? Prior to coronavirus, did you pay your bills? Did you pay your bills on time? Did you have any bankruptcy? Did you have any bad debt. Did you? You know, they're going to look at your character for repaying this loan now.

With the stimulus package, my guess is that the standard that they'll hold people up to will be a lot more lenient than in the past. So what I'm trying to communicate, Kedma, is if you have had, if your credit score isn't great and you've had trouble paying loans in the past, or you've gotten into trouble, you've had some rough times in the past, that doesn't mean don't apply, of course, because the rules of engagement may be different today. I think the government's trying to make them different to get you to employ people and keep people on staff. But, but historically, that's the way it's been. So they're going to look, you're going to fill out an application, they're going to look at your things like your credit score and, you know, your ability in your past. What else do we need to prepare?

So I've got. Yeah, but let me just preface here, and you may not like this, but I have to just make a clarification.

Yep.

If there's any leniency on reducing the document requirements, it is not going to be the SBA that makes that final decision. Why is that the case? Do you know why, Scott?

I have no idea.

I'm going to tell you why.

That's why I have you here.

Because it's the underwriters that are working at the banks who have to respond to the shareholders who make those final decisions. And those criterias will either have to be decided by the financial industry in collaboration with SBA as a negotiation tool, or else you're going to run into. What normally happens is while SBA can relax it for the loan guarantee for the lender, at the end of the day, if the underwriter at the lending community that you're working with, which I would highly recommend you working with smaller banks as well as bigger banks because of the underwriting requirements. If they say no, it's no. And so it's not that we're. I know the government's going to do a lot, but we have to also see what are the lenders saying and how are they going to consider that criteria?

Okay, okay.

Sorry for that.

I mean, that's, that's great. I mean, because there's, there's.

What I want to share is the real, real, real. It's, you know, it's easy to get caught up in hype. It's easy to get caught up in hype. About what this coronavirus may mean and what it's going to do. It may be it's easy to get caught up in hype around what a payment from the government or a loan from the government may look like.

So I want to give you the best information, the best information possible and that we have available. And by the way, two things. One, this is a super fluid situation, right. We all know that things are changing on a real time basis. And so we're giving you the most current information as it exists at, you know, today.

Right.

Right now. And so some of what we share may be a bit different tomorrow. So, so again, so you're gonna, okay, so you're gonna go, you're gonna go to the.

Get the documents.

Get the documents.

Let me add a few more documents. So everyone knows you need to have your profit and loss statements in place. So if you don't know how to do that, there's lots of resources. Scott, we can talk offline, but they're going to look at that. And to your point, they're going to look at your income tax returns and they're probably going to look at your business plan being revised. So you need to go back to your budget, you need to revise your budget, because what they're going to say is you have to communicate how your plan is right now, and then you have to communicate how you're going to spend that money so that we can see how it's going to play out in the budget moving forward.

So at a minimum, we're going to fill out an application. We are going to, they are going to run, you know, credit and other things. We are going to prepare our taxes. So we need.

Up to three years.

It doesn't have to be the current, it doesn't even have to be 2019, because I know there's been an extension made for that.

Right. So you would have maybe 18, 17, 16. You would have a profit and loss statement.

Absolutely.

You would have a balance sheet.

Yes.

And you would potentially be asked to revise or update your business plan in a way that shows how you're going to spend this money and effectively, by spending this money, be able to repay it, knowing that if you get the loan from that's backed by the sba, you would be able to, and you, do you satisfy the criteria that they've set. You could potentially have the entire loan forgiven and not even have to pay that loan back. But they need to see that you're treating this as if you were getting a loan that you would be paying back. So I think that is. I think that's super important. I think what's also really important here that we're discussing is if you want a business, it is absolutely essential that you have a relationship with a banker because stuff comes up. Maybe coronavirus doesn't come up, you know, every year for you, but what may come up is there may be a hiccup in your business. There may be an illness, you know, that you have or somebody in the family that in fact impacts, you know, what's going on in your industry. There may be changes in the market. There may be times when you're really short on cash, and if you don't have anybody to call, that puts you in a really difficult place. The people that I know that are the most successful that have had businesses over a long period of time, one of the things they have is they, they typically, they got a list of the key people that they build relationships, and near the top of that list is with their banker.

Yeah.

So again, if you have a relationship with a banker, this is a great time to call them. If you're going to look for an SBA guaranteed loan or another. Another loan. One of the questions that keeps coming up, Kedma, is is this something where we have to go into the bank in order to apply today, or is this something that we can. Are going to be able to do with a loan officer over the phone or through Zoom?

That's a great question. I think. Well, banks are being considered essential business as we know it. So the banks are still going to be open, but given the. What. What I think is most concerning to your point is they're going to be inundated right now. And so it's going to be dependent on how that particular lender is going to design their infrastructure, because they are, they're probably right now hiring. So if you're thinking about becoming a loan officer, this is the time right now because they are so inundated. So it's probably going to be a combination of both. I also want to make sure, Scott, we leave some room so I can talk about other funds. We're probably not going to have enough time in this episode, but we can continue that dialogue so that people listening here know that there are other avenues if they can't receive those funds, that this is not just the only funds out there.

You know, I think that that's a, that's a show in itself.

I think so, too.

We've done this with people. We've taken them through a process of helping Them to really get clear on on who they are and what connects about them and their businesses with the right grant opportunities.

Correct.

And there is so much money out there that people don't realize is available, which is your specialty. So in Kedma worked with the sbdc, she was director with the sbdc. One of the things that she did was help small businesses. It was a primary responsibility to get SBA financing, but her expertise was always finding non SBA money for people. And so it was either other loan programs or other grants. So what I'd like you to do, if you're open to it, is I'd like to ask you to come back if you could come back tomorrow. If you could come back tomorrow, that for all of you that are listening, would that be helpful? If we had Kenma come back tomorrow and we talked specifically about what are the other ways you can find money programs available, other loan programs, grants, free money programs, institutions, whatever it is to help you guys find capital. If you guys think that would be helpful, we'll have Kedma back tomorrow and that's what we'll focus on. And if there are any new updates that we get with regard to.

The bill that was passed by the Senate last night and hopefully gets passed by the House today and what is required for SMBs to get money from these programs, we'll give those to you tomorrow. If you find any of this information has been valuable for you or you think it would help another entrepreneur, please, I ask you, please share this stream Share this feed let's help as many people as we can to get as much information as we can in real time. And what we hope to provide here is.

Hardcore data. So we don't want to be about hype. We don't want to be about. This isn't a place to come just purely for motivation. We want to give you the best data that you can act on right away to help improve your circumstance. That's what we want to do and that's what this show is all about. Also for anyone who's listening. And again, we are broadcasting across Dash Radio all over the United States. You can pull down the podcast each day. We are live on Facebook, YouTube, Periscope, Instagram, LinkedIn, every day from wherever you are watching or listening. If there are experts, particular areas where you need particular help and you want me to bring in an expert from that industry. So Kedma, I couldn't think of anybody in the country that I know that would know more about how to translate this stimulus bill for us, for small businesses and help us to actually get the cash into our accounts than cdma. So that's why I reached out this morning. If you're in another business, you may be in the restaurant industry, you may be in delivery driver business, you may be in whatever the industry that you're in. Real estate, and you need specific help and you'd like me to bring in an expert or there's somebody that you know that is really kind of a light in that. In a particular space. Please tell me because I would love to bring them on and make them a resource for all of you.

Love it.

No, we have one more minute left to go.

Are there any questions that came up? Is anyone. Is there any other questions, Scott, that came up that we could answer?

There's so many.

Oh, my God. Let's pull one or two then, as a way to support them.

Yes. Okay. Hold on just a second. I'm looking for patterns right now. That's typically what we see.

And if anyone needs to reach out to me, Scott has my info. You could find me on LinkedIn.

Why don't. Why don't you share it right now while I'm looking?

Yeah. And then while you're doing. Yeah. So you could go to kedmao.com k e d m a o u g h dot com. I do a lot on LinkedIn, on Facebook, I have targetfunding dot com. My book is on audio. But we are here to serve you. This is time to come together to find the funds to use the funds. And so I am in such full gratitude for Scott for bringing me on, so I can really help as many people as possible. Any questions?

We have a question from Dr. V.

Hey, Dr. V.

This is a great question and it's a trend that I'm seeing. What if you've had an SB loan in the past, would you still qualify for a new loan?

I can't see why not. As long as you did not default on the SBO loan in the past, presuming you paid off the loan, I'm assuming you paid off the loan, there should be no reason why you can't go after this loan. This loan is specifically designed as disaster relief loan says. So it's. Even though it's written as an S7A loan, it's built.

Got it. We have just another minute. This is actually a great question. This is from Angela.

Hello, Angela.

If you're an individual with an S corp, are you unable to to. Are you ineligible for any of the stimulus?

In what aspect? In terms of receiving the checks that are coming in or receiving access to the small business loans because there's so many aspects of that.

So let's talk about both. If you're, if you're an S corp, can you, is there a way that you can get access to the personal stimulus loan? Stimulus, the cash that's being sent. If you're a small business and you want to get a loan back by the SBA as an S corp, do you think you would qualify?

So Angela, great question. My understanding is the stimulus that's coming in for checks is really based on the tax returns for the household income that you've had. So looking at what the household income was and then determining what each house, what which each adult member would get and whether there's any children in the house, what they would get. And I think that is being seen as separate. Correct me if I'm wrong, I'll have to go back. But that I see as that's the personal stimulus, that's the personal versus the business space. You know, I have not received any information that a legal structure is going to be excluded from it. The only thing I have received that is that in certain loan applications outside of SBA there are some stipulations on who can apply for certain things. But I have not received any notice that you're not eligible for the stimulus package or to apply for a 7A loan as an S corp. Now my understanding also.

So I'm getting a question about unemployment.

Yeah, we can talk about that.

So just real quick and we've got a wrap. So for unemployment, if you have an S corp or you have an LLC and this is impacting you.

Can you file for unemployment? I don't have the answer, I haven't seen the details. But my understanding is that this new stimulus package and the way that they're altering unemployment during this period could make you eligible.

Yes, that is correct. So as I understand it, sole proprietors and other self employed workers.

Yeah.

Could be eligible for the expanded unemployment benefit. So that's the writings in the, that's kind of the details that we have to find out. What I would suggest you do, Angela, and for everyone here, you need to call your state department unemployment and find out if in fact that you're going to follow through that eligibility. Those are the nitty gritty details to see how they're going to spend it. But I will tell you self employment.

Workers are being considered for SBA loans. Final question. We got about 30 seconds.

The question is do you have a resource or where can people find resources? To help them prepare loan packages.

I will send you the link on that. There are several ways we can do that. So I will provide that to you. Scott, where to go? Because if I say it off the top of my head, you're probably going to. There'll be people who are lost anyway. So is it okay for us to upload this? Definitely want to do sba.gov but I will give you the link and I will explain to you how to prepare the documents.

Awesome, awesome, awesome, awesome. Kedma, I can't thank you enough for being here. You took my call really early this morning. I said, will you please come on. I called you at like 5:30 this morning. I can't believe you picked the phone up. That was awesome. And so thank you so much for coming on. That's great information. I'd love to have you back on tomorrow to talk about programs that aren't tied to the government necessarily, but other places that we can go to find financing and also other places that we can go outside of loan programs, grant programs to find all that right now. So if we can talk about that tomorrow. For all of you that joined us live here today, I want to thank you, thank you to our family, to our community here in Facebook, YouTube, Instagram, LinkedIn, Periscope, all over the Internet. I want to thank you so much for joining. Also, you can listen to this show on Dash Radio Monday through Friday. Download. The Dash app is incredible. Listen to Dash.

And download the podcast. You can find the podcast on itunes. And if you found value today in what it is that we're talking about, please go ahead and share it with other people. Please invite them to join the community. Invite them to be a part of this network. And finally, if there's anyone, if there's an expert in industry, anything that you want me to include in the show, it's all about you. So anything that I can do, please just shoot it, you know, put it in the comments, whatever, and I will be more than happy to reach out and try and make that happen. For Kedma and for Scott, I want to say thank you guys. Have an amazing day and we'll see you again tomorrow at 10:00am Pacific Time. Take care.

Bye.