I used to run a brokerage firm with 600+ business clients. I've done PE valuations and acquisitions. I left that field a few months ago, but I'm still in touch with many clients. Every single day (no exaggeration), people have been contacting me for advice on their relief loans -- asking me what to do because they're less than a month away from having to fire employees, and temporarily/permanently close shop and sell assets. Even worse? Terms for SBA loans have been changing every few days on the SBA website. This isn't just me. The SBA itself has no idea how to manage any of this, and the Federal government isn't stepping in to help.
What happens when small businesses go underwater? Well, for one, they don't open back up right after quarantine ends. It takes a long time and a lot of risk to set up a successful small business. No one is out there leveraging assets into 30+ employees less than a year after losing 30+ employees.
Small businesses as a bloc employ the largest chunk of workers in this country -- nearly half of the entire workforce. Small businesses in this country are less than a month from closing up shop, and that's not hyperbole.
Edit: For the WSB stragglers out there, sorry. I just got removed as mod, too. Don't buy puts yet. Hang tight for the volatility rallies to end. If the small business loans don't get fixed this month, Jan 2020 2021 puts. There's a chance Congress steps in to help.
Submitted April 07, 2020 at 10:49PM by lulzcakes https://ift.tt/3aYvoII
