Let’s say that for some reason the government shut down your business for three weeks. At the same time consumer demand is soft going into and coming out of that period. You’re the leader. What do you do?
Well, here’s a plan –
Send employees home and lower fixed costs to as close to zero as possible, while one employee answers phones from home to capture what leads there are and get them scheduled for after the shutdown. Your employees collect unemployment.
Here’s another scenario –
Go to your bank Monday and get a CARES act loan (was passed Friday) for the average monthly payroll from last year X 2.5, plus your rent, mortgage interest, utilities for two months. Send the employees home and keep paying them with the money you get. In three weeks get started again. In 16 weeks, ask your bank for loan forgiveness because you have not laid anyone off. They will forgive 8 weeks of payroll (including PTO and health care costs associated with the payroll) 2 months of rent, and utilities.
You should be good.
Call an FDIC insured bank. Now. (If your regular bank can’t help, go to another one.)
I reached out to our bank, Wells Fargo, and they sent me an SBA Disaster Assistance document. This states that the governor of the your state has to request for Economic Injury Disaster Loan declaration.
It has been my recent understanding that in a time when most businesses cut cost, the strong a d determined business will market. And market big to leverage there position as demand picked up. As to hiring, look at the example of Bug Ass fans and how they hired after the 08 slowdown.
Good luck over coming conventional wisdom.
Thanks, great information!!!
THANK YOU SO MUCH!
Well… I’m a little confused on the math… so the government gives you money to stay steady and then you ask forgiveness ? because you didn’t lay anyone off? You continue to pay them while at home which is the right thing to do but does this apply to commission employees and how do you determine that number to pay them? I’m just trying to figure this out…thanks for any guidance! Appreciated!
I went to Wells Fargo and they said that the Cares application is not available yet – has anyone been able to apply?