SBA PPP loan thread

[scostu]

Originally Posted by dreamingat30fps

I applied with Chase as soon as their online app was working. Not a word. I got a voicemail from someone at chase (local branch I'm guessing) asking if I had any questions about my account or the PPP loans. I immediately called back and got their voicemail, left a message, haven't heard back from them either.

The whole thing was very poorly handled by Chase and people online are saying they are having to wait for hours on hold to get anyone on the phone about account related things.

Same scenario with Chase bank and me.

[KenB925]

I got an email from Bank of The West.

This all went about how I expected.

I suspect that in the weeks and months to come we are going to learn some disturbing and infuriating things about this program.

I read that Bank of America (the first bank to start funding these things) was giving the money to people/companies that were at risk of defaulting on Bank of America loans, which is not hard to imagine.

It is also my opinion that banks will not want to process this program for a solid company because that company is low risk and they would much rather write a conventional (more profitable) loan.

Pretty disgusted with my bank right now. I may make a change when all the dust settles.

[cmyx6go]

Originally Posted by KenB925

I got an email from Bank of The West.


I suspect that in the weeks and months to come we are going to learn some disturbing and infuriating things about this program.

Does this qualify? Can't blame the bank, but the rule makers.


Large restaurant chains have gobbled up $30 million in federal loans meant to shore up small businesses during the coronavirus crisis.

The companies behind Potbelly Sandwich Shop and Ruth’s Chris Steak House each got sizable loans under the feds’ Paycheck Protection Program, the $349 billion small-business aid package that ran out of money Thursday.

Florida-based steakhouse operator Ruth’s Hospitality Group inked deals April 7 for $20 million in loans administered by the US Small Business Administration under the $2.2 trillion coronavirus stimulus bill passed last month, records show.

And Chicago-based Potbelly Corporation got a $10 million loan from the program on April 10, the company said in a regulatory filing. Both firms said they received the money through JPMorgan Chase Bank.

The so-called PPP loans were aimed at helping companies with up to 500 employees cover payroll and overhead costs. But lawmakers expanded eligibility for restaurants so that companies could apply as long as they had no more than 500 workers at any single location.


Seriously? A friend of mine's boss didn't qualify because they have over 500 employees spread throughout the country but a huge restaurant chain is OK because they don't exceed 500 employees at ONE location.

https://nypost.com/2020/04/17/potbel...mall-business/

[dsad1]

Originally Posted by cmyx6go

Does this qualify? Can't blame the bank, but the rule makers.


Large restaurant chains have gobbled up $30 million in federal loans meant to shore up small businesses during the coronavirus crisis.

The companies behind Potbelly Sandwich Shop and Ruth’s Chris Steak House each got sizable loans under the feds’ Paycheck Protection Program, the $349 billion small-business aid package that ran out of money Thursday.

Florida-based steakhouse operator Ruth’s Hospitality Group inked deals April 7 for $20 million in loans administered by the US Small Business Administration under the $2.2 trillion coronavirus stimulus bill passed last month, records show.

And Chicago-based Potbelly Corporation got a $10 million loan from the program on April 10, the company said in a regulatory filing. Both firms said they received the money through JPMorgan Chase Bank.

The so-called PPP loans were aimed at helping companies with up to 500 employees cover payroll and overhead costs. But lawmakers expanded eligibility for restaurants so that companies could apply as long as they had no more than 500 workers at any single location.


Seriously? A friend of mine's boss didn't qualify because they have over 500 employees spread throughout the country but a huge restaurant chain is OK because they don't exceed 500 employees at ONE location.

https://nypost.com/2020/04/17/potbel...mall-business/

The employees per restaurant makes sense, we have local chains here that have multiple locations with over 500 employees total, but are still very much a small business.

They should have added another limitation though, maybe put a limit on how many locations you have,or that you have to be local or regional, no national companies.

[cmyx6go]

Originally Posted by dsad1

The employees per restaurant makes sense, we have local chains here that have multiple locations with over 500 employees total, but are still very much a small business.

They should have added another limitation though, maybe put a limit on how many locations you have,or that you have to be local or regional, no national companies.

I feel for any SMALL business. I'm sorry, but I don't consider Ruth's Chris a small business. I never heard of the other company but in my opinion, Ruth's Chris took $20M away from all the small guys here and everywhere who didn't get in before the money ran out. Why do their rules state no more than 500 employees at a location when the general rules are overall 500 employees total. What restaurant do you know of that has 500 employees in ONE location.

They have 150 locations....And they are public. WTF???? It's just wrong.

Thank you for visiting the Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) website. This is the place where you'll find the latest company news and overview of our business.

Our portfolio of restaurants includes our legendary Ruth's Chris Steak House brand, which was founded in 1965 by Ruth Fertel.

The Ruth's Chris Steak House legacy began when Ruth Fertel mortgaged her home for $22,000 to purchase the "Chris Steak House," a 60-seat restaurant located in New Orleans, Louisiana. More than 40 years later, our success continues to be driven by our adherence to Ruth's core values, which are to deliver the highest quality food, beverages and service in a warm and inviting atmosphere.

Today, there are more than 150 Ruth’s Chris Steak Houses, including 20 international franchisee-owned restaurants in Mexico, Hong Kong, Taiwan, Tokyo, Aruba, and Canada.

[RickFLM4]

Originally Posted by cmyx6go

I feel for any SMALL business. I'm sorry, but I don't consider Ruth's Chris a small business. I never heard of the other company but in my opinion, Ruth's Chris took $20M away from all the small guys here and everywhere who didn't get in before the money ran out. Why do their rules state no more than 500 employees at a location when the general rules are overall 500 employees total. What restaurant do you know of that has 500 employees in ONE location.

They have 150 locations....And they are public. WTF???? It's just wrong.

Thank you for visiting the Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) website. This is the place where you'll find the latest company news and overview of our business.

Our portfolio of restaurants includes our legendary Ruth's Chris Steak House brand, which was founded in 1965 by Ruth Fertel.

The Ruth's Chris Steak House legacy began when Ruth Fertel mortgaged her home for $22,000 to purchase the "Chris Steak House," a 60-seat restaurant located in New Orleans, Louisiana. More than 40 years later, our success continues to be driven by our adherence to Ruth's core values, which are to deliver the highest quality food, beverages and service in a warm and inviting atmosphere.

Today, there are more than 150 Ruth’s Chris Steak Houses, including 20 international franchisee-owned restaurants in Mexico, Hong Kong, Taiwan, Tokyo, Aruba, and Canada.

They made the rule like that specifically to assist restaurants, much like there is specific help for airlines and others, and specially to assist workers (many of whom are not highly paid) avoid layoffs. There are a lot of restaurant employees.

Many franchise restaurant owners own more than one restaurant. If they left it at 500 employees instead of 500 per location, many of these franchisees would not qualify, the restaurants would close and workers would lose their jobs.

[cmyx6go]

Originally Posted by RickFLM4

They made the rule like that specifically to assist restaurants, much like there is specific help for airlines and others, and specially to assist workers (many of whom are not highly paid) avoid layoffs. There are a lot of restaurant employees.

Many franchise restaurant owners own more than one restaurant. If they left it at 500 employees instead of 500 per location, many of these franchisees would not qualify, the restaurants would close and workers would lose their jobs.

I get helping the restaurants and airlines but Ruth's Chris is a public company. Why would they pull from the PPP which is for small business?

[RickFLM4]

Originally Posted by cmyx6go

I get helping the restaurants and airlines but Ruth's Chris is a public company. Why would they pull from the PPP which is for small business?

Why does it matter if they are public? I worked for a public company that had 400 employees and there are numerous smaller public companies. The program was set up the way it was and they were eligible. I don’t fault them for using it.

[cmyx6go]

Originally Posted by RickFLM4

Why does it matter if they are public? I worked for a public company that had 400 employees and there are numerous smaller public companies. The program was set up the way it was and they were eligible. I don’t fault them for using it.

I just assumed that small business was just that, and not pubic companies. If they were eligible, then I take back my rant.

[KenB925]

Originally Posted by dreamingat30fps

I applied with Chase as soon as their online app was working. Not a word. I got a voicemail from someone at chase (local branch I'm guessing) asking if I had any questions about my account or the PPP loans. I immediately called back and got their voicemail, left a message, haven't heard back from them either.

The whole thing was very poorly handled by Chase and people online are saying they are having to wait for hours on hold to get anyone on the phone about account related things.

Originally Posted by cmyx6go

Does this qualify? Can't blame the bank, but the rule makers.


Large restaurant chains have gobbled up $30 million in federal loans meant to shore up small businesses during the coronavirus crisis.

The companies behind Potbelly Sandwich Shop and Ruth’s Chris Steak House each got sizable loans under the feds’ Paycheck Protection Program, the $349 billion small-business aid package that ran out of money Thursday.

Florida-based steakhouse operator Ruth’s Hospitality Group inked deals April 7 for $20 million in loans administered by the US Small Business Administration under the $2.2 trillion coronavirus stimulus bill passed last month, records show.

And Chicago-based Potbelly Corporation got a $10 million loan from the program on April 10, the company said in a regulatory filing. Both firms said they received the money through JPMorgan Chase Bank.

The so-called PPP loans were aimed at helping companies with up to 500 employees cover payroll and overhead costs. But lawmakers expanded eligibility for restaurants so that companies could apply as long as they had no more than 500 workers at any single location.


Seriously? A friend of mine's boss didn't qualify because they have over 500 employees spread throughout the country but a huge restaurant chain is OK because they don't exceed 500 employees at ONE location.

https://nypost.com/2020/04/17/potbel...mall-business/

This definitely seems to go against the 'spirit' of the PPP, however IF the money is used as it is supposed to be then it would be fine. We will find out that (maybe in these specific cases, maybe not) this money is not going to the wait staff, bartenders and bus boys, it will be going to pay rent on the buildings that are owned by the executives of the corporation, or the corporation itself.

People who are in the business of making money will easily out smart a hastily piece of legislation, and they already have lobbyists and bankers on speed dial, for all we know Chase is a major lender to the corporations and therefore has a serious interest in 'helping' them along, or a stock holder.

I do agree that these chains are a very important part of the economy, they have many vendors and customers. This program is about protecting the workers paychecks, I just don't see that happening in this case.

[hubbahubba]

While I certainly see the points that Rick and Dsad bring up, as a 1 store franchisee, I am with cmy and Ken on this. It is the Small Business Administration. Not the feed the publicly traded company Administration. Those with more resources should have been limited on their take, or given the opportunity for a different type of loan. If they had been limited, I may have received funding and been able to help our staff. As it sits, they are still suffering.

[DocL]

This is the perfect example of the government fucks the little guy like me. I got everything in by April 8th and now I get nothing. Now I will have to permanently fire all of my employees and figure out how to survive until I can go back to work and not have staff.

[RickFLM4]

It would have been easy enough to write the legislation to exclude public companies and / or all employers with more than x number of locations or x number of employees. Congress could have also required some proof funding was needed, have more stringent requirements for forgiveness or any number of other things. They didn’t, so it is what it is. If you must, blame government, not those who availed themselves to what was available.

I’m sure there is another school of thought that these loans shouldn’t exist at all and more money should just go to unemployment. Honestly, I can appreciate that view as well, although I’d prefer to save businesses and jobs than have even more on unemployment. But anything the government does will involve stupidity, waste, fraud and shortfalls in expectations and that’s just the way it is.

All that said, I still expect congress will approve more funding. They just need to fight about it and figure out who else gets some money to satisfy both sides of the aisle.

[hubbahubba]

Originally Posted by RickFLM4

It would have been easy enough to write the legislation to exclude public companies and / or all employers with more than x number of locations or x number of employees. Congress could have also required some proof funding was needed, have more stringent requirements for forgiveness or any number of other things. They didn’t, so it is what it is. If you must, blame government, not those who availed themselves to what was available.

I’m sure there is another school of thought that these loans shouldn’t exist at all and more money should just go to unemployment. Honestly, I can appreciate that view as well, although I’d prefer to save businesses and jobs than have even more on unemployment. But anything the government does will involve stupidity, waste, fraud and shortfalls in expectations and that’s just the way it is.

All that said, I still expect congress will approve more funding. They just need to fight about it and figure out who else gets some money to satisfy both sides of the aisle.

I certainly don't blame the company's mentioned above, they played by the rules. You are 100% right, blame Congress. Again.

I believe that they will get their act together and get more money in the program. It is just a shame that they can't stop their bickering and help now.

[hubbahubba]

Originally Posted by DocL

This is the perfect example of the government fucks the little guy like me. I got everything in by April 8th and now I get nothing. Now I will have to permanently fire all of my employees and figure out how to survive until I can go back to work and not have staff.

I feel you...

[TrevorM3]

https://www.sba.gov/funding-programs...on-program-ppp


according to this, funds are out. i'm sure there will be more? there has to be..

[saeyedoc]

Finally got our loan documents yesterday, all signed and we should be funded Monday, big relief.

[hubbahubba]

Originally Posted by TrevorM3

https://www.sba.gov/funding-programs...on-program-ppp


according to this, funds are out. i'm sure there will be more? there has to be..

Yep. Write or call your congresspeople immediately and tell them to pass a clean extension of the funds. I have even been calling reps out of my state.

[hubbahubba]

Originally Posted by saeyedoc

Finally got our loan documents yesterday, all signed and we should be funded Monday, big relief.

Fantastic! Very happy for you and your staff.

[TrevorM3]

just to be clear, you ddont have to physically go INTO a bank to try and get a loan right?

[hubbahubba]

Originally Posted by TrevorM3

just to be clear, you ddont have to physically go INTO a bank to try and get a loan right?

As far as I know, no.

[saeyedoc]

https://www.latimes.com/business/sto...s-unemployment
Interesting article. Thanks Frost employees for getting this done!