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Started By
Message
Small business advice request: PPP repayment refinance help
Posted on 9/7/21 at 12:21 pm
Posted on 9/7/21 at 12:21 pm
I chose not use all of the proceeds of the PPP on eligible expenses and now have a balance to repay. I understood what I was doing when I did this and it was not a surprise. The repayment period is 9 months starting this month. We are lucky enough to have picked up a large amount of work that is about to kick off and cash flow is now a concern while we ramp up for it.
I am wondering if any third party lenders are refinancing these promissory notes for longer terms. I see on the SBA website that they are allowing banks to sell these promissory notes and still keep the SBA guarantee of them. I have reached out to my banker and am still waiting for a response but figured that there was a lender somewhere that could facilitate this. Anyone have any insights?
The amount I'm looking to refinance is about $160k over an 18-24 month period. We are a Louisiana company that works mostly in Texas.
I am wondering if any third party lenders are refinancing these promissory notes for longer terms. I see on the SBA website that they are allowing banks to sell these promissory notes and still keep the SBA guarantee of them. I have reached out to my banker and am still waiting for a response but figured that there was a lender somewhere that could facilitate this. Anyone have any insights?
The amount I'm looking to refinance is about $160k over an 18-24 month period. We are a Louisiana company that works mostly in Texas.
This post was edited on 9/7/21 at 12:33 pm
3
Posted on 9/7/21 at 12:25 pm to FatCatLSU
quote:
I chose not use all of the proceeds of the PPP on eligible expenses and now have a balance to repay.
Just curious on why you would choose this.
Posted on 9/7/21 at 12:31 pm to BallsEleven
quote:
Just curious on why you would choose this.
No work for almost 14 months so financials were in the crapper and couldn't refinance our debt. I needed to service the debt in order to hold onto our equipment. Without good credit and the ability to finance new and additional equipment, I have no business.
This post was edited on 9/7/21 at 12:32 pm
Posted on 9/7/21 at 6:50 pm to FatCatLSU
quote:
The amount I'm looking to refinance is about $160k over an 18-24 month period
hindsight is 20/20 bro but they were basically rubberstamping forgiveness for small loans. my total was right at 160 and all i did was fill out the application and send it in, got forgiven that same week.
you couldn't figure something out?
in any event, if you have a decent banking relationship you should be able to refinance the debt and get extended terms. you are going to have to put up collateral though, i'd imagine
Posted on 9/7/21 at 8:57 pm to cgrand
At the time we had no work at all. If I had used it all for forgivable expenses, I’d have had no way to service the debt and would have had to liquidate or surrender my equipment and vehicles and my credit would have been in the crapper. Instead I made payments on the loans and kept everything intact. Not like I took 160k in additional debt here, I just paid down other existing liabilities with it. Remember payments on loans was not forgivable..
Those were dark times for my industry and cash in the bank was looking like the smart play at the time. Perfectly happy with the decision , just want to refinance. I can absolutely go with a conventional loan in order to do that but was specifically looking for a lender that refinanced these because they are still guaranteed by the SBA and it should be an easy deal.
Those were dark times for my industry and cash in the bank was looking like the smart play at the time. Perfectly happy with the decision , just want to refinance. I can absolutely go with a conventional loan in order to do that but was specifically looking for a lender that refinanced these because they are still guaranteed by the SBA and it should be an easy deal.
Posted on 9/8/21 at 6:22 am to FatCatLSU
Just out of curiosity did you not have other eligible expenses that you could have used PPP for?
You may have been better off getting a newer loan for what you used the PPP for and used PPP for forgivable expenses.
I’m not in banking so I don’t know your answer but I don’t see why you couldn’t get what you needed.
You may have been better off getting a newer loan for what you used the PPP for and used PPP for forgivable expenses.
I’m not in banking so I don’t know your answer but I don’t see why you couldn’t get what you needed.
Posted on 9/8/21 at 9:35 am to baldona
No other forgivable expenses. Overhead is very low by design as we are a bit if a seasonal company. Payroll is really our main expense. To be clear, i used this PPP to pay down other, higher interest debt. This was not an additional liability. I had to continue making the loan payments on my equipment and vehicles or I would have had to liquidate them at a loss or default on the ,loans . Now that we are past that, equipment still here, credit intact, I am simply trying to turn that short term debt into a long term debt. I can conventionally refinance it but thought maybe someone was specifically working with these loans as they are federally guaranteed.
Posted on 9/8/21 at 1:13 pm to FatCatLSU
You made a difficult decision to save your business. In the end, you still have a company and jobs for people. In no way am I going to judge you for that. I think it's honorable that you want to do this the right way. 
Posted on 9/8/21 at 4:32 pm to FatCatLSU
quote:
FatCatLSU
just out of curiosity what did your banker say?
Posted on 9/8/21 at 7:57 pm to FatCatLSU
quote:
No other forgivable expenses.
How did you banker get you $160k of non forgiveable expenses? That’s surprising to me. I need a new damn banker, mine was busting my balls on what I asked and I felt like I could have easily asked for 25-30% more.
Given that, I don’t know your current lending/ credit situation but I can’t imagine you can’t get it sorted out.
As said, would be very interested in what you find out OP as far as options
Posted on 9/9/21 at 3:57 pm to FatCatLSU
Go apply for an EIDL loan. Use those proceeds to pay the loan out.
Posted on 10/19/21 at 8:24 pm to VABuckeye
quote:
I think it's honorable that you want to do this the right way.
You fricking right it is.
A dying breed you are, baw.
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