Villages really helping small businesses?

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  #31  
Old 04-06-2020, 12:07 PM
Dan9871 Dan9871 is offline
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Has your friend tried applying for an SBA loan?

The legislation does not require landlords to forgive or defer rent, but the loan can be used for rent and utilities and then forgiven if the the employees are paid.

The SBA loan does not forgive mortgage principal payments made with the loan but it does forgive the interest on those payments. So at the end of the SBA loan forgiveness period (6 months at the moment) he will be paying back the principle amount to the SBA at a rate that is probably lower than his mortgage rate.

In effect he skips paying any interest and defers paying off the principle but at a lower rate then his mortgage.

Seems like a good deal but, of course, but the devil is in the details so he really should check with a bank about getting the SBA loan.


Paycheck Protection Program

"The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender."


Quote:
Originally Posted by retiredguy123 View Post
Rent and mortgage payments are two entirely different things. I have seen where mortgage payments to a bank can be suspended, but not forgiven. But, most small businesses pay rent to a landlord under a private lease agreement. I have not seen anything that will suspend or forgive the lease payments. Can you cite a provision in the legislation? I know a person with a small business, and her landlord has refused to do anything to alter the lease.
  #32  
Old 04-06-2020, 12:21 PM
retiredguy123 retiredguy123 is online now
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Quote:
Originally Posted by Dan9871 View Post
Has your friend tried applying for an SBA loan?

The legislation does not require landlords to forgive or defer rent, but the loan can be used for rent and utilities and then forgiven if the the employees are paid.

The SBA loan does not forgive mortgage principal payments made with the loan but it does forgive the interest on those payments. So at the end of the SBA loan forgiveness period (6 months at the moment) he will be paying back the principle amount to the SBA at a rate that is probably lower than his mortgage rate.

In effect he skips paying any interest and defers paying off the principle but at a lower rate then his mortgage.

Seems like a good deal but, of course, but the devil is in the details so he really should check with a bank about getting the SBA loan.


Paycheck Protection Program

"The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender."
Yes, she got a $10,000 loan, but all but one of her employees, who are young, quit. And, most of her customers have cancelled their regular accounts. She has had a successful fitness business for 15 years, but her rent is about $5,500 per month. So, I think it will be very hard to maintain the business. I don't see how the stimulus bill comes close to making her whole.
  #33  
Old 04-06-2020, 12:42 PM
Dan9871 Dan9871 is offline
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Quote:
Originally Posted by retiredguy123 View Post
Yes, she got a $10,000 loan, but all but one of her employees, who are young, quit. And, most of her customers have cancelled their regular accounts. She has had a successful fitness business for 15 years, but her rent is about $5,500 per month. So, I think it will be very hard to maintain the business. I don't see how the stimulus bill comes close to making her whole.
I agree, I don't see this making her anywhere near whole. But she does have 6 months before she has to start paying back the loan. Hopefully things will start picking back up in a couple of months and then and she can recover. If they don't my guess is that the forgiveness period will be extended.

I had a friend who had a fitness center in upstate New York. It's a hard business to keep going.

But I think the main purpose of these loans was to give businesses a way to retain employees and to insure that employees got a paycheck even if the business had no customers.
  #34  
Old 04-08-2020, 07:04 PM
DavidStockhausen DavidStockhausen is offline
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Default Small Busines in Chili Cookoff

they helped a family run small business Crown Carts by strong arming the rotary club to kick them out of the Chili CookOff because they were showing golf carts!
  #35  
Old 04-08-2020, 07:10 PM
Villageswimmer Villageswimmer is offline
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Originally Posted by 72lions View Post
The headline in today’s paper says that Villages is taking big steps to help small businesses. When you read the article, all it talks about is the Village owned bank doing what every other bank is doing to help process loans under the new federal law. Wouldn’t it be nice to learn that the Villages was taking some steps to postpone or reduce lease payments being made by retail owners during this trying time?
Just my opinion, but the headline didn’t quite match the content. This seems very common these days.
  #36  
Old 04-08-2020, 08:49 PM
bhemingway bhemingway is offline
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What do you know about what the family is or is not doing? They are not going to public with what they do or don't do. My goodness, do you enjoy living in TV or not? If not then please move. We do not need people like you here.
  #37  
Old 04-09-2020, 06:06 AM
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The other side of the issue nobody wants to address is if sales start to slow down (pretty sure they have already) and it puts stress on the developer will any of these companies, that many seem to want the developer to help, provide them with any relief? Will they say you can hold off paying us for another month? Will they offer them a discount on their invoicing? Will they give the developer anything? Not very likely.

The developer is still building houses and paying their contractors (and keeping people employed). This is not a paid-when-paid business, the developer pays for the construction of each and every house and then must sell it to make their money back. Sitting on inventory, which will increase as sales are slowing due to this virus, costs them money, it costs them working capital, if they are using construction loans the interest is accumulating and will have to be paid. Their chance of recovery of any expenses or losses is close to zero.

The commercial properties are no different, taxes and common utilities still have to be paid, the building have to be maintained (roofs, exterior cleaning, landscaping, etc.), all of which falls to the property owner not the tenants. If a water line breaks and a parking lot needs to be repaired or the roof starts to leak, who takes care of that? The property owner of course. How would the tenants react if the property owner said "I'm falling on hard times and need you to pay more rent"? The likely response would not be "sure, no problem" but more to the affect of "we have a contract", "not our responsibility/problem", or "you're hurting our business, we're going to sue".

All parties are in this economic downturn together and need to work together to weather the storm. The perception that "they have all the money" lacks the reality that "they are taking most of the risk", to the tune of hundreds of millions. What The Villages (developer) is doing with their merchants and contractors is their business not ours, unless it's your money at risk you have no say and your opinions matter not. It's in the best interest of all parties that everything survives this mess, and they know it, more so than you or I.

How many falsely perceive the wealthy
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  #38  
Old 04-09-2020, 08:54 AM
vintageogauge vintageogauge is offline
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Quote:
Originally Posted by Bogie Shooter View Post
Your post March 10. (What is it they say about glass houses...……………)
"That may be true, but the rep is still going to be blamed. It is pretty clear that the developers are having reps say whatever they think will sell the houses. They told us in 2012 that build out would be in 5 years max. How many lies does the developers have to tell you before you begin to understand what you/they are doing? If you keep working and keep passing on the lies, well, you’re going to get blamed."
Our sales rep. was Beth Pope and she didn't lie to us. Used here service again for a rental home recently and again she didn't lie to us. Maybe it's the rep. not the policy?
  #39  
Old 04-09-2020, 08:58 AM
vintageogauge vintageogauge is offline
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Quote:
Originally Posted by Goldwingnut View Post
The other side of the issue nobody wants to address is if sales start to slow down (pretty sure they have already) and it puts stress on the developer will any of these companies, that many seem to want the developer to help, provide them with any relief? Will they say you can hold off paying us for another month? Will they offer them a discount on their invoicing? Will they give the developer anything? Not very likely.

The developer is still building houses and paying their contractors (and keeping people employed). This is not a paid-when-paid business, the developer pays for the construction of each and every house and then must sell it to make their money back. Sitting on inventory, which will increase as sales are slowing due to this virus, costs them money, it costs them working capital, if they are using construction loans the interest is accumulating and will have to be paid. Their chance of recovery of any expenses or losses is close to zero.

The commercial properties are no different, taxes and common utilities still have to be paid, the building have to be maintained (roofs, exterior cleaning, landscaping, etc.), all of which falls to the property owner not the tenants. If a water line breaks and a parking lot needs to be repaired or the roof starts to leak, who takes care of that? The property owner of course. How would the tenants react if the property owner said "I'm falling on hard times and need you to pay more rent"? The likely response would not be "sure, no problem" but more to the affect of "we have a contract", "not our responsibility/problem", or "you're hurting our business, we're going to sue".

All parties are in this economic downturn together and need to work together to weather the storm. The perception that "they have all the money" lacks the reality that "they are taking most of the risk", to the tune of hundreds of millions. What The Villages (developer) is doing with their merchants and contractors is their business not ours, unless it's your money at risk you have no say and your opinions matter not. It's in the best interest of all parties that everything survives this mess, and they know it, more so than you or I.

How many falsely perceive the wealthy
They are truly still building at a fast pace. Bradford is now going up and it's hard to believe what they get done over there in just 24 hours. Also, TV does not want to come out of this with a bunch of empty commercial spaces, I think they're smart enough to help their tenants get through this. Things like City Fire selling store products would most likely not have been allowed prior to the virus but it's a good service that is helping them pay their bills.
  #40  
Old 04-18-2020, 09:41 AM
JCMSr JCMSr is offline
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Quote:
Originally Posted by Goldwingnut View Post
All parties are in this economic downturn together and need to work together to weather the storm. The perception that "they have all the money" lacks the reality that "they are taking most of the risk", to the tune of hundreds of millions. What The Villages (developer) is doing with their merchants and contractors is their business not ours, unless it's your money at risk you have no say and your opinions matter not. It's in the best interest of all parties that everything survives this mess, and they know it, more so than you or I.

How many falsely perceive the wealthy
In addition to what Goldwingnut has already stated I ask the question what business of yours is it what actions are taken by the Developer between him and his rentors/business associates. Would it make you feel better if they agreed to forgive one month's rent? The truth is this would just give the developer bashers more fuel to start saying how cheap they are for not giving two, three or more months. Furthermore, as a rentor/leasee how would you feel about the developer sharing your private terms and conditions with the world? Next month you would probably expect the businesses to offer discounts to you since they got free rent. Unless you are a stockholder or partner of the businesses connected to the lease it is non of your business. Perhaps you may think it is the developers responsibility to share this information to satisfy your own curiosity but I can see this as wrong on so many levels. Perhaps we should require each prospective homeowner to share his tax returns with his future neighbors just so they can feel better about who will be living next door. Would that be acceptable to those who feel entitled to this type of sharing?
  #41  
Old 04-18-2020, 01:35 PM
DianeM DianeM is offline
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Originally Posted by JoMar View Post
Do you have information on other Developers that are reducing or forgiving rent or is this just a bash the Morse post?
Nailed it !
  #42  
Old 04-18-2020, 01:38 PM
DianeM DianeM is offline
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Originally Posted by BlueHeronFan View Post
It would sure be nice for some info on the $155 monthly amenity fee not being able to use, or the rec center gym membership I just renewed before they closed the rec centers. Just some info. Not too much to ask.
Are your roads still clean? Are the green spaces still mowed? Are plants still planted? Guess where your amenity fee goes. Surprise!
  #43  
Old 04-18-2020, 01:43 PM
DianeM DianeM is offline
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Quote:
Originally Posted by retiredguy123 View Post
Rent and mortgage payments are two entirely different things. I have seen where mortgage payments to a bank can be suspended, but not forgiven. But, most small businesses pay rent to a landlord under a private lease agreement. I have not seen anything that will suspend or forgive the lease payments. Can you cite a provision in the legislation? I know a person with a small business, and her landlord has refused to do anything to alter the lease.
If I were a landlord, I could understand postponing rent a month or two perhaps. But, at the end of the day the landlord’s bills need to be paid as well so rent cannot be “forgiven”. You sign a contract (lease) and for exceptional circumstances, rent can be postponed but will still need to be paid when this is over.
  #44  
Old 04-18-2020, 01:45 PM
DianeM DianeM is offline
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Originally Posted by 72lions View Post
I am referring to them as landlords, not a developer. There have been countless examples in the media of landlords sharing the burden. The family can well afford to provide some short-term leniency for the benefit of all. My point was the paper implied the family was healing out small businesses when there is no evidence to this.
There’s that green eyed monster again. “The family can well afford” mentality. They owe nothing to anyone.
  #45  
Old 04-18-2020, 01:47 PM
DianeM DianeM is offline
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Originally Posted by theruizs View Post
The only post I read here about bashing the Morse family is yours. The others are just a reasonable discussion of the new act regarding the business loans, and a simple question. These unwarranted attacks is what starts these threads to go awry.
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