oh wow this one is closed to
guys were literally living in uncertain times right now where
businesses across the world are closing and I just came to
the strip this is my hometown in Las Vegas and I've never seen it like this
I've never seen the casinos completely shut down these businesses not accepting
customers the last few weeks have been completely crazy and it kind of forced
me to rethink or to think of ways to be able to help a community of
entrepreneurs out there who may be living in these uncertain times as well
perhaps you already have some employees or just recently launched your brand
and are finally paying yourself so in this video I really want to share some
resources that you can use to raise funding for your business during the
recession now it's important to note guys that it is on certain times and no
one has a crystal ball to be able to say when this will finally recede as
entrepreneurs it's it's really our goal to innovate and change the way that
businesses run after we get out of this because the reality is that there's
gonna be millions of businesses that never come back all around the world
it's gonna be a lot of services a lot of iconic brands that will never really
make the comeback because of the fact that people aren't going to be buying
the same way that they used to so it creates a golden opportunity for
entrepreneurs but at the same time it creates a lot of uncertainty in the
market so if you're a new visitor to this channel I highly encourage that you
guys subscribe by hitting down the button right down below and in this
channel we'll essentially going to be sharing ways that entrepreneurs can
continue building their brand of business from the ground up especially
during a time like this so I hope you guys enjoyed this video
and let's jump into it
this amount of paperwork right here was the amount of paperwork I thought I
sincerely needed in order to apply to the loans that we're about to discuss as
you can see it's very heavy intensive a lot of information was compiled a lot of
details went into actually creating this application at the entire time
I thought we actually needed to have in order to submit to these applications
that to these processes that I'm about to show you guys so the big thing about
getting funding during this economic downturn right now is that the
government laid out two different loans for businesses small business as well as
sole proprietors so whether you're an LLC a sole prop or a partnership these
are applications you'll be able to submit and essentially with all the
research out there I did hours of research I spoke to my accountant so we
can compile all the documents so I'm speaking on this and on behalf of
somebody that's just recently done it all the information out there makes it
seem like you need to have everything ready to go before you even start that
application online which is what I did and I delayed myself so I want to make
sure that you guys don't delay yourself and that you immediately apply as soon
as you have the basic information down which is what we're going to be
discussing right now essentially the loans break down into two different
types of loans that you need to know the first one is called the PPP the Paycheck
protection program and that one is the one that essentially the government is
giving you in order to keep your employees on and not lay anybody off the
second one is called the EIDL the economic injury disaster loan and that's
essentially the disaster loan and that one you can apply directly through the
SBA now what's interesting as I was coming up with with what I was going to
say to you guys today I actually met with the main SBA director of the entire
United States at the beginning of February before this even made the
mainstream news now when we were sitting around the roundtable we were discussing
the different challenges that small businesses had it just down to me right
now that this lady came into place in order to deal with the economic downturn
that's about to happen she was in charge of the Treasury Department from the
early 2000s and she has a big with dealing with the financial sector
and she was in charge of the Puerto Rico disaster loans and all kinds of
disasters in the past so this lady has the background in order to deal with
what's happening and this was all really going into play back in February so I
say all this to you guys to say that the government is preparing but they're not
that prepared yet to actually start accepting full applications at masses so
what this means is you'll be able to apply with very basic information that
I'm gonna show you guys right now so regardless if you have all these
documents like I did I literally spent about a week and a half compiling
everything before I submitted which caused me to delay my application and
now my queue is like somewhere behind the other million or so businesses that
applied before me so if you're watching this make sure you apply before
everybody else does because I think everybody else is doing the same thing I
did and you don't necessarily have to do that is what I'm trying to get across
but you do have to know your financials and you do have to know the reality of
your business and then when you apply you'll be able to submit the documents
that you put together during the time period that that you're waiting because
it's not like you apply and then they approve and you have to submit
everything it's you apply and you wait up to three weeks to up to a month
before you even hear anything back from anybody the PPP is a little quicker but
as a disclaimer I still haven't gotten anything back any word back from chase
chase chase bank shout out to chase I hope you guys process my PPP application
soon so let's jump into some of the details that's actually required to
submit your information all right these are the actual documents that you'll
need to have ready the basic information you'll need to have in order to apply to
the different types of loans now before I jump into those loans I guess it's
important to note that the PPP application can be a hundred percent
fully forgivable that means that you don't have to pay that loan back it's
essentially a grant for your business so if you had employees if you were an
employee yourself and maybe you had a couple other people working with you you
could potentially get money in order to keep them on payroll and you can
continue your operations during this economic uncertainty right and you don't
have to pay it back so it's essentially a grant
now the SBA disaster loan that does that is alone and it is capped at a certain
amount depending on your operating expenses but the thing is that you don't
figure out what you what you actually qualify for until they submit and they
they go through your application and they ask you for all this paperwork so
it's unknown how much you'll actually get from that but they did recently
release something that allows you to get $10,000 upfront as soon as you apply
again as a disclaimer I applied still don't have $10,000 in my account so it
could really vary guys the reality is all this stuff seems really good
it'll probably eventually hit the accounts and when it does I'll give you
guys an update CIN the comments I do have friends and entrepreneurs and other
businesses that applied before I did a few weeks before and they recently got
their award back and they got their applications submitted and processed so
with that being the case it really depends I think speed is your friend
don't weight off any longer because the longer you wait off the more people
before you and it's just going to cause you not to get the funding that you need
in order to operate your business so let's jump into the basic requirements
and then I actually want to just show you guys an overview of what it takes to
submit both applications overall they're super straightforward they're easy to do
if you have all the documents ready you're even golden you're ready for them
to contact you and you can probably approve it a lot quicker but don't wait
off until you have everything to submit it as you'll see right now you only need
some basic information that you can quickly gather with bank statements that
you have available and an accountant that might be able to help you so let's
jump into that aren't you guys so the main difference between the PPP and the
e IDL is that the PPP can be submitted through your bank accounts any bank that
you do business with as well as some online lenders which I will link in the
video notes down below everything that we discuss right now in case I move on a
little too quickly or there's some uncertainty with what I said you could
just click the show notes down below and it'll take you to all the
links that we referenced and information that supports what it is I'm saying so
what you'll need for the PPP I want to break this down between the documents
that you're gonna need with each since the PPP is meant to keep you in business
and keep the people that you're working with working instead of going unemployed
the documents that you're gonna need for that is your business tax return for
2019 if you have it oftentimes people don't but if you have it the 2019 is
essentially covering a lot of the documents that you're gonna need you're
gonna need some payroll statements that show that you were paying people whether
you're paying yourself or you're paying somebody else you're gonna need to show
that that you had payroll for 2019 in the beginning of 2020 and then notes of
how you came up with the amount that you're requesting so essentially the
application when I show it to you guys it's gonna ask you for 2.5 times the
operating expenses which is essentially your payroll any payroll tax health
insurance that you provide your rent and utilities once you come up with a total
amount that you that you expend every month it's going to give you 2.5 times
that amount so say your total operating expenses at a given month was 10,000
then you would potentially qualify for 25,000 and then you would have to come
up with notes on how you came up with that as well as provides some of the you
know some of the some of the financials that support that now if you don't have
your these documents up here that we just listed you'll essentially be
providing basic you'll have to provide your bank statements that show the
activity of that payroll and of those expenses that you're noting so if you
don't have all the legit stuff which chances are you don't you still have to
provide some big statements in order to support those findings all right and
then the application itself is super easy all you're gonna need is your
business information such as your LLC things like that and then your signature
online and and submitting it it's that quick guys you can literally get this
done pretty easily as long as you have these statements ready it's important
that you have these basic statements ready for this one because if you don't
then it'll it'll pick you off because it's a time thing whenever you're
submitting it an online service so make sure you have
those documents before you start that application the application itself is
very easy now that's I would say the PPP is a little harder to actually submit
than the SBA disaster loan for this for the sake that it does ask you for all
those documents upfront the SBA disaster loan doesn't ask you for all those
documents when you actually submit the application which makes it which makes
this one a little more simple and straightforward to actually apply for
because it gives you a few weeks before you have to give them all the
information that I showed you guys at the beginning of this video so
essentially if you start with the SBA disaster loan you're you're actually in
a in a way better position to start getting all your documents ready and
then you could always apply to the PPP once you have the basic stuff
for the disaster loan this is the documents that they are going to request
when you are ready when they actually request them right again they're not
going to request them out of the gate which makes it which gives you a few
weeks to put all of this together ok so just make sure you have the basic
information for your business in order to apply and in a second here we're
going to show you guys what that looks like to show you that it's not as
daunting as it as it's made out to be alright so the complete business loan
application that's done online all right that's actually done to the
SBA the economic injury disaster loan supporting information this is also done
online request for transcript of tax return that's also online lists lists
the most recent owners and percentage of the owners that's online the most recent
tax return for the business they don't ask for it right out the gate the
personal financial statement this is also done online you just list the
owners and then the percentage that they own and their contact information and
social security numbers and then you're able to submit that and then your
schedule liabilities with all figures that that's something that they're gonna
follow up with because it's not on the online application and your personal tax
returns for each twenty percent owner not something that you have to submit
out the gate and then the most recent profit and loss statements and balance
sheet for the business again that's something that you have to submit out
the gate current year today profit and loss
statement another thing that you don't have to submit right out of the gate so
essentially all you really need is the the personal information of who the
business owners are business some basic business information and from there you
can come you can actually submit and get a number that puts you in the queue
which a loan officer will then follow up with you and ask for these other
documents now before they did it this way they were allowing you to upload all
the documents online and then they were processing them as they came in but I
think they changed it because of the fact that there are so many applications
coming they weren't able to efficiently process them so I think they're doing it
this way now because this is the most recent update from what I have seen and
what I actually went through so it's been about two weeks from the day I'm
filming this right now and I still haven't heard back from this one yet so
we'll see what it says anywhere between three to four weeks so we'll see how
long it actually takes again this seems complex but it's really not right now
what I want to do is I want to show you guys what the disaster loan application
actually looks like all right so we're gonna be showing you guys the the actual
application which I will be linking the links to where you can access this
information through the notes down below again this is super simple like you just
click on it from here it just says you know you don't have more than five
hundred is a business not more than five hundred you just select whatever applies
to you you know you're not a legal activity you're not doing gambling
you're not doing anything sexual related so if you're strip club or something I
think this does prevent you from getting a system from the government you know
the government doesn't want to assist strippers I guess and it doesn't it
doesn't want to support gambling either even though that's legal right anyways
from there you just submit your business information like I was mentioning
all right from there your business owner information this is the information of
the people that own the business so if you have additional owners you would
just click here and add them as well and you have to say is your business owned
by a business entity no this would mean if your owned by another corporation or
you're like a spin-off of another business or another business bought you
there is some there are some things that you would need to know you may not
qualify for this loan if that's the case so essentially they ask you very common
things has you've been convicted of criminal are you currently barred from
receiving contracts are you do you own child support money so if you own child
if you owed child support money there may be some issues here and then from
there this is if you paid anybody to complete the application and then this
is important I would like to be considered for an advanced up to ten
thousand remember I mentioned that there is a possibility of you getting money
for this application as soon as you submit it I haven't received mine yet
it's supposed to be a few days after they received your application to get it
to you I haven't received it yet but I would like to be considered and you
should also check that as well you enter your bank account your routing
number and then you just hit next there the last screen will essentially just
hit the summary and from there it would just say hey is this all true and just
ask you to check yes I certify this is true and that's it then you get a number
with an application that is essentially the entire SBA application for the
disaster loan again that's the simplest one that you guys can do when it comes
to doing the PPP you can do it through your through your primary bank or an
online service and when it comes to chase and a lot of people have chase
accounts you would essentially be able to apply right through there any bank
account will have you log in to confirm that you're you're a client of theirs so
if you have a business with a major bank and go through them and you're gonna
have to just log in and complete your application it's pretty similar to the
one that we just did with the SBA except that we'll have you upload those
documents we just mentioned earlier in this video it'll have you up upload them
as soon before you submit the application from there they'll the
bankers themselves will actually review it and let you know so far it's been
about seven days since I applied mine so I haven't received any word back yet
still waiting on that I'll keep you guys posted on how that goes but essentially
that's the application process in a nutshell I will be linking some links
down below so you guys have access if you don't have a major bank you link
some online portals that you can also process your applications through and I
hope that also helps so maybe sitting at home right now wondering if you should
take action and to that I would advise that you make sure that your family's
taken care of that you guys have the basic necessities first and that most
importantly you remain safe during this situation now I would also encourage
that you guys look into using this free time as an opportunity to start working
towards that business that you always wanted to create because even though the
future may seem uncertain what is certain is that bad times will pass bad
times will pass and the good times will come and like they say you got to start
building when you have that downtime and right now entrepreneurship with the
technology that we have and the resources that are available you can
literally create anything so you could either use this next recession as a
crutch or you can use it as a way to finally launch on that business and
create a new opportunity for your family in your community so right now I want to
take the moment and ask you guys to answer this question what is that one
business that you always wanted to create and don't forget your community
is waiting for you to act on it