Paycheck Protection Program

Paycheck Protection Program (PPP) is a loan designed by the US Govt, and implemented by the SBA, to provide a direct and immediate incentive for small businesses to keep their workers on the payroll, and thus avoid large scale job losses, because the SMBs create over 50% of the total jobs across America.

SBA will forgive loans if all employees are kept on the payroll for eight weeks, and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender, or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

Lenders may begin processing loan applications as soon as April 3, 2020.
The Paycheck Protection Program will be available through June 30, 2020.
Please check with your local lender whether it’s participating in the program.

Who Can Apply
The following entities affected by Coronavirus (COVID-19) may be eligible:

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Any business, 501(c)(3) Non-profit organization, 501(c)(19) Veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of: 500 employees, or that meets the SBA industry size standard if more than 500.
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) with more than one physical location, and employs less than 500 per location
  • Sole proprietors, Independent Contractors, and Self-employed persons.

Please see this page to learn more details. Thanks.
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

Letter to Business Owners across America

We are all facing a forced economic shutdown, because of the coronavirus pandemic, but the demand will rise strongly within 3 months once the economy starts again. You must plan and prepare for the growth surge that is ahead. There is a huge opportunity ahead in various B2B and B2C businesses!

We believe that most small and medium businesses, or SMBs, can double their annual sales over the next 12 to 24 months and this is possible by focusing on the target markets that your business has, and also, maximizing the visibility of your business in front of your target customers. And for this purpose, we have social media platforms like Facebook, LinkedIn and Twitter that are extremely useful to showcase your products and services. We have experience in doing that for businesses over the last 12 years, and that experience will be available to all our customers across America.

In the current scenario with the Coronavirus pandemic, there is/there will be huge demand for construction of various types. So among the different kinds of industries that we are engaged with, we are seeing a huge increase in construction projects of different types. And if you are a construction worker, your challenge is probably not as much as sales but in getting the funds to, to execute the projects that may come to you in the next 6 months.

And the same is true for any company involved in protective clothing, masks, disinfectants, soaps, and any other kind of medical products and medical supplies that are in huge demand currently. But the manufacturing capabilities of such products is not in the US currently because all the manufacturing has gone to China over the last 20 years. So suddenly, there is a need to rebuild some manufacturing capacity within America in an urgent way, and utilize that manufacturing capacity to provide essential medical and healthcare supplies, as well as consumer supplies related to hygiene and healthcare.

So these manufacturing capacities are in huge demand, and small businesses should orient themselves to produce these products if they have the ability. And we understand that many don’t have, because over the last 20 years, a lot of manufacturing work has gone to China, and the majority of the industries or service industries in the US and of course, the farming is very much there as a backbone.

But in this case, the need is for medical supplies and hygiene products, which are mostly imported today. And there will be higher demand, for the next several years, to produce within America because the current health risk is not a one-off event. Medical experts think that this kind of new virus maybe a recurring event for the next few years until society develops immunity against the virus. So businesses have opportunities for that purpose.

But independent of what industry you are, whether it’s a cafeteria or a restaurant that has been hard hit by all the lockdowns and closures, or any other form of business, we can work to get your sales and marketing plan in place, and we can also connect you to finance companies who will be happy to provide very timely finance to you to grow your business.

Now if your sales are looking good, and there are new opportunities you want to capture by increasing your capacity or buying new equipment, often businesses run into the funding constraint that the finances are not available to rapidly utilize available opportunities. For example, there may be a construction project, which needs new equipment but the finance may take a long time if you approach banks, but there are private finance companies who are ready to lend at very attractive/nominal rates within 3-5 days. Such a solution helps in most cases.

Of course, the government is also giving various forms of grants and we should think of using them, but there is finance that is available from multiple sides that you can explore through us. Thank you. Best Wishes, Shankar

Federal Reserve announces temporary US Dollar Liquidity Arrangements with other Central Banks

March 19, 2020, New York: The Federal Reserve on Thursday announced the establishment of temporary U.S. dollar liquidity arrangements (swap lines) with the Reserve Bank of Australia, the Banco Central do Brasil, the Danmarks Nationalbank (Denmark), the Bank of Korea, the Banco de Mexico, the Norges Bank (Norway), the Reserve Bank of New Zealand, the Monetary Authority of Singapore, and the Sveriges Riksbank (Sweden).

These facilities, like those already established between the Federal Reserve and other central banks, are designed to help lessen strains in global U.S. dollar funding markets, thereby mitigating the effects of these strains on the supply of credit to households and businesses, both domestically and abroad.

These new facilities will support the provision of U.S. dollar liquidity in amounts up to $60 billion each for the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Korea, the Banco de Mexico, the Monetary Authority of Singapore, and the Sveriges Riksbank and $30 billion each for the Danmarks Nationalbank, the Norges Bank, and the Reserve Bank of New Zealand. These U.S. dollar liquidity arrangements will be in place for at least six months.

The Federal Reserve also has standing U.S. dollar liquidity swap lines with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank.

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