Connect with us

Business

Today Might Be Your Last Chance To Get Free Government Money Via The PPP And EIDL For Small Business. How To Apply And What To Avoid – Forbes

Published

on


If you haven’t yet applied for a PPP (Paycheck Protection Program) loan, you may still have a shot. However, that shot is going to miss its target if you don’t act now–and I mean now.

Let me explain: The initial iteration of the program ran out of its $350 billion of funding almost immediately, and small businesses that weren’t funded initially have been cooling their heels since then. Congress, happily, has since reloaded the program with billions more dollars, which become available to the online system used by banks Monday morning (April 27) at 10:30 a.m. Eastern time.  

So, please: If you need some of that money, get your applications in now. 

Before I go any further, I need to caveat everything you just read, and everything you will read in the rest of this article, quite vehemently. I am neither a financial nor a legal professional. (My subject matter expertise is quite different: I’m a customer experience expert consultant and I emphatically do not do financial consulting.) The information in this article is gathered from sources I believe to be reliable, but I may be wrong about this and/or, as a layperson, I may have misinterpreted it in my summary below. Furthermore, much of the information from the government itself is still unclear or in flux, so that’s another variable to be aware of.

Where not to apply

Where should you apply? Well, first, here’s whom to avoid: the big banks, most specifically (I have heard), Chase, which has developed, deservedly or not, a spotty reputation for how it handled applications initially, and which is now brazenly warning even existing applicants that they should probably look elsewhere.

Where to apply

To give credit where credit is due (see what I did there?), smaller regional banks and credit unions did a great job the first time around, and are where I’d ideally suggest you go this time around as well. However, they are, by and large, only accepting applications from their existing banking customers, and, like everyone else in this landscape, they expect any new money to evaporate soon.

If you don’t have an existing relationship with one of these regional banks or credit unions, are you out of luck?    

With them, probably. But, in a heartening development, fintechs (online not-quite-banks) have been approved to give out PPP loans as well.   You can apply right online with

PayPal

Square Capital (the Square cardreader/merchant services people). Note: this link only works if you have an existing account with them.  

Quickbooks Capital

What else do I need to know about the PPP?

• If you apply for more money than you actually can use on payroll or other permitted expenses in the 8 weeks after you get the loan, it will be turned into an extremely low interest loan, rather than being forgiven. The rule of thumb here is an important one: don’t bend too far over backwards to try to get a huge PPP loan; sensible business operations are what matter most in this challenging time.

•   However, there are intelligent ways to make sure you use as much of the loan as makes sense, in ways that can achieve forgiveness. Once you get your loan, be sure to read this article on how to have the best shot at 100% loan forgiveness.

Are there programs other than the PPP that I should be applying for?

Definitely. First off, the EIDL (Economic Injury Disaster Loan).

While the SBA website for this currently says that there has been a lapse in funding, the funding should be restored presently. This money is quite wonderful in that there is no expectation of repayment.

Also consider local and state programs, whether COVID-19 specific or pre-existing.

Finally, there are some novel opportunities out there. For one, Facebook is giving grants to small businesses within the locales where they have offices.

For further reading

This is the fourth article on government loans that I’ve written recently.  Again, all of these articles are based on my understandings/my interviews with professionals. I am not, myself, a financial or legal professional.

• For a broader overview, read this.

• For a bit more info on the fintech aspect, read this.

• And, again, very important: Once you get your loan, read this for information on how to achieve as close to 100% loan forgiveness as possible.

Let’s block ads! (Why?)



Source link

Business

Global stocks buoyant, dollar slips as economies start to unlock – Reuters

Published

on


NEW YORK (Reuters) – World stocks hovered near three-month highs and safe-haven government bonds inched lower as signs that Europe’s economic downturn has bottomed boosted risk appetite, despite worries over violent protests in the United States and unease over Washington’s standoff with Beijing.

President Donald Trump left a trade deal with China intact Friday despite moving to end Washington’s special treatment for Hong Kong in retaliation for Beijing seeking to impose new security legislation on the city.

China has asked state-owned firms to halt purchases of soybeans and pork from the United States in response, two people familiar with the matter said.

“The Trump rhetoric against China and trade impediments against Hong Kong could have been a lot worse, hence the performance of those markets this morning, which has helped the risk backdrop,” said Chris Bailey, European strategist at wealth manager Raymond James.

MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.29% following broad gains in Asia and Europe. The index .MIWD00000PUS is up more than 35% from its March lows.

In morning trading on Wall Street, the Dow Jones Industrial Average .DJI fell 114.39 points, or 0.45%, to 25,268.72, the S&P 500 .SPX lost 11.9 points, or 0.39%, to 3,032.41 and the Nasdaq Composite .IXIC dropped 24.20 points, or 0.25%, to 9,465.68.

Signs of a rebound from the global coronavirus lockdown helped bolster global equities and push safe haven assets lower. France’s manufacturing activity rose in May as the country began to emerge from a nearly two-month coronavirus lockdown, pulling the sector out of a nosedive that had seen activity hit a record low a month earlier, a survey showed on Monday.

An official business survey from China showed its factory activity grew at a slower pace in May but momentum in the services and construction sectors quickened.

Benchmark 10-year notes US10YT=RR last fell 10/32 in price to yield 0.677%, from 0.644% late on Friday.

Bond investors suspect economies will need massive amounts of central bank support long after they reopen and that is keeping yields super low even as governments borrow much more.

FILE PHOTO – The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February March 9, 2020. REUTERS/Staff

“Current unemployment numbers go far beyond what has been experienced in any post-war recession,” Barclays economist Christian Keller wrote in a note. “To the extent that some sectors may never return to pre-pandemic business-as-usual.”

A weekend of violent U.S. protests over race and policing could present another setback for the economy which was only just emerging from the steepest economic downturn since the Great Depression.

Following poor data on spending and trade out on Friday, the Atlanta Federal Reserve estimated economic output could drop a staggering 51% annualized in the second quarter.

The May jobs report due out on Friday is forecast to show the unemployment rate surged to 19.8%, smashing April’s record 14.7%. Payrolls are expected to drop by 7.4 million, on top of the 20.5 million jobs lost the previous month.

In commodity markets, gold added 0.5% to $1,735 an ounce XAU=. [GOL/]

Tensions between the U.S. and China weighed on oil prices. U.S. crude CLc1 recently fell 2.73% to $34.52 per barrel and Brent LCOc1 was at $37.70, down 0.37% on the day.

FILE PHOTO: A passerby wearing a protective face mask, following an outbreak of the coronavirus, walks past an electronic board showing the graphs of the recent movements of Japan’s Nikkei share average outside a brokerage in Tokyo, Japan March 6, 2020. REUTERS/Issei Kato

(Graphic: Global assets – tmsnrt.rs/2jvdmXl)

(Graphic: Global currencies vs. dollar – tmsnrt.rs/2egbfVh)

(Graphic: Emerging markets – tmsnrt.rs/2ihRugV)

(Graphic: MSCI All Country Wolrd Index Market Cap – tmsnrt.rs/2EmTD6j)

Reporting by David Randall; Editing by Nick Zieminski

Let’s block ads! (Why?)



Source link

Continue Reading

Business

At the open: TSX starts flat as oil prices drop – The Globe and Mail

Published

on


Canada’s main stock index opened lower on Monday, dragged down by energy stocks on falling oil prices, as fears of low demand for crude offset OPEC and Russia considering extended production cuts.

At 9:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 15.22 points, or 0.1%, at 15,177.61.

U.S. stocks opened lower on Monday after a strong showing last month, as investors turned cautious amid country-wide protests over race and a flare-up in tensions between Washington and Beijing.

Story continues below advertisement

The Dow Jones Industrial Average fell 40.12 points, or 0.16%, at the open to 25,342.99. S&P 500 fell 11.46 points, or 0.38%, at 3,032.85.

The S&P 500 opened lower by 3,044.31 points, or 100.00%, at 0.00. The Nasdaq Composite dropped 18.45 points, or 0.19%, to 9,471.42 at the opening bell.

World stocks hovered near three-month highs and the dollar was flat on Monday as optimism over economies opening up again boosted risk appetite, despite worries over mass protests in the United States and unease over Washington’s standoff with Beijing.

Having risen a whopping 35% from a late March trough, stocks looked set to kick off June with more gains. The MSCI world stocks index has recovered two-thirds of the losses it incurred in the aftermath of the coronavirus outbreak.

Investors were also relieved that President Donald Trump left a trade deal with China intact despite moving to end Washington’s special treatment for Hong Kong in retaliation for Beijing seeking to impose new security legislation on the city.

China has asked state-owned firms to halt purchases of soybeans and pork from the United States, two people familiar with the matter said, following Washington’s move over Hong Kong.

In Europe, stock markets were up 0.8% led by virus-hit sectors such as travel & leisure, banks and miners but volumes were subdued as Germany, Switzerland and Austria were closed for holidays.

Story continues below advertisement

“The Trump rhetoric against China and trade impediments against Hong Kong could have been a lot worse, hence the performance of those markets this morning, which has helped the risk backdrop for the European open,” said Chris Bailey, European strategist at wealth manager Raymond James.

In Asia, stocks closed higher, led by China on signs that parts of the domestic economy were picking up. Hong Kong managed to rally 3.4%, while Chinese blue chips put on 2.7%.

An official business survey from China showed its factory activity grew at a slower pace in May but momentum in the services and construction sectors quickened.

Japan’s Nikkei added 0.8% to also reach a three-month peak.

The safe-haven dollar, meanwhile, hit an 11-week low dented by risk-on mood among investors and protests in major U.S. cities over race and policing.

“I agree the riots are not good but the perception is that this is a local issue…and the uncertainty has spilled over into a lower dollar,” Bailey added.

Story continues below advertisement

In Philadelphia, one of the cities that had instituted a curfew due to protests there, Nasdaq Inc said it postponed Monday’s planned reopening of its PHLX options trading floor, which had been closed because of the coronavirus pandemic.

The turmoil in the U.S. was a fresh setback for the economy which was only just emerging from a downturn akin to the Great Depression. Following poor data on spending and trade out on Friday, the Atlanta Federal Reserve estimated economic output could drop a staggering 51% annualised in the second quarter.

The May jobs report due out on Friday is forecast to show the unemployment rate surged to 19.8%, smashing April’s record 14.7%. Payrolls are expected to drop by 7.4 million, on top of the 20.5 million jobs lost the previous month.

“Current unemployment numbers go far beyond what has been experienced in any post-war recession,” Barclays economist Christian Keller wrote in a note. “To the extent that some sectors may never return to pre-pandemic business-as-usual.”

Bond investors suspect economies will need massive amounts of central bank support long after they reopen and that is keeping yields super low even as governments borrow much more.

Yields on U.S. 10-year notes were trading steady at 0.66% having recovered from a blip up to 0.74% last month when the market absorbed a tidal wave of new issuance.

Story continues below advertisement

German bund yields were stuck near minus 0.42%.

In currency markets, the euro was last up at $1.1114, after climbing 1.8% last week. The Australian dollar hit a four-month high.

Much of the dollar’s recent decline has come against the euro which has been boosted by plans for an EU stimulus package. The European Central Bank is also widely expected to say on Thursday that it will raise its asset buying by around 500 billion euros to 1.25 trillion.

In commodity markets, gold added 0.5% to $1,735 an ounce .

Brent crude futures were off 8 cents at $37.76 a barrel, while U.S. crude fell 35 cents to $35.14

Reuters

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Dow Jones, S&P 500, Nasdaq Composite Ready for More Highs? – DailyFX

Published

on


Wall Street, Dow Jones, S&P 500, Nasdaq Composite – Asia Pacific Market Open

  • Market sentiment recovered into Friday’s Wall Street close
  • Trump presser on China underwhelmed escalation worries
  • Dow Jones, S&P 500, Nasdaq Composite eyeing more highs?

The Dow Jones, S&P 500 and Nasdaq Composite soared into Friday’s close after temporarily trading in the red. The former still ended the day -0.07% while the latter two closed +0.48% and +1.29% respectively. This turnaround in sentiment weighed against the anti-risk Japanese Yen while the growth-linked Australian Dollar followed the rise in global equities.

For most of Friday, investors were anxiously awaiting President Donald Trump’s news conference on China. This was in response to the latter endorsing a proposed security law for Hong Kong. In fact, sentiment deteriorated during morning North American trade as the White House weighed sanctions against China’s finance sector. Perhaps fears that the Trump administration could also levy tariffs worried traders.

Ultimately it seemed that the worst-case scenario priced in by markets was avoided, for now. For one thing, reports crossed the wires that Trump was not planning on quitting the phase-one trade deal. He formerly announced that the country would revoke Hong Kong’s preferential treatment status. Stock markets cheered his presser, sinking the haven-oriented US Dollar.

Monday’s Asia Pacific Trading Session

With that in mind, Asia Pacific equities could follow Wall Street’s rosy lead to start off the new trading week. Gains in Japan’s benchmark Nikkei 225 and Australia’s ASX 200 may offer support for the Australian Dollar and New Zealand Dollar.

This could come at the expense of the US Dollar and Japanese Yen. Caixin China manufacturing PMI (May) will cross the wires later today. The data could reveal further insight into how the economic recovery is unfolding in the world’s second-largest economy.

Wall Street Technical Analysis

Below is a 4-hour chart of my Wall Street index which averages Dow Jones, S&P 500 and Nasdaq Composite futures. Prices failed to confirm a breakout under key rising support from the middle of May – pink lines. This leaves the index facing peaks from last week as US equities, on average, attempt to push towards highs from March. Keep an eye on RSI which could reveal negative divergence, a sign of fading momentum.

Change in Longs Shorts OI
Daily17%7%10%
Weekly26%-4%5%

Wall Street Index – 4-Hour Chart

Dow Jones, S&P 500, Nasdaq Composite Ready for More Highs?

Chart Created in TradingView

— Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

Let’s block ads! (Why?)



Source link

Continue Reading

Trending