Applications, Leases and Cash Money
Originally Published : April 7, 2020
Dear HL Clients,
Let’s make sure that we are all working on our loan applications and that they are going in asap. We keep hearing rumors that the money is running low and we know our dearly elected are talking about adding 250 B’s to the fund which tells me that there may be some truth to that rumor so stop dillydallying, shillyshallying and lollygagging and get those apps in STAT!
And once the money comes in, we will have to be prepared with a plan as to how we will emerge from this current larval stage. I am thinking about the hospitality world pre and post vaccine. Pre-vaccine is going to be tenuous. I imagine that we will be allowed to open slowly and carefully and at only a small percentage of our capacity until either a vaccine is developed and distributed or until the reported cases of Covid have decreased to almost zero.
How long will that take? It’s still anyone’s guess but we need to remain realistic and plan to be closed for at least another few months. I sure hope I’m wrong but I would rather be conservative on this particular point so we don’t get caught short.
Post-vaccine, everything will be back to normal and more. It’s going to be the Roaring 20’s all over again. We will all have a new appreciation for life and we will all want to live it to the fullest and hopefully everyone will have jobs again and that means eating and drinking and communing to excess in bars and restaurants with our fellow New Yorkers. So, we just have to hang in there and stay afloat until that day arrives.
Right now, running out of money is understandably the biggest source of stress for us all so let’s meet it head on and actually put some brain power into planning on how to deal with it. I am currently working with a terrific restaurant consultant on a program that will provide a cash flow analysis for our clients so you can figure out how long your current money will last and will be able to factor in any new funds that come in from loans. Stay tuned for this later this week.
Also, we are bringing on a bankruptcy attorney as “of counsel” to the firm. This is not to be morose but we need to understand the tools available during this monetary quagmire and bankruptcy is one of them. More information coming on that soon as well.
Joey Regs says:
Never did I think that I would find myself saying, “I miss doing liquor license applications,” yet here we are. We’re filing EIDL and NYC interest free loan applications left and right. They’re a pain in the neck, but the NYC site and the SBA site are doing their respective jobs. The respective banks’ PPP platforms, however, is an entirely different story. Here’s the update from the front line…
After launching their platform at 6:00 PM last night, Chase’s site crashed (only 20 mins later). We banged our heads against that wall for about an hour, then decided to give it a rest. We opted to focus on the EIDL and NYC loans until about 10:00 PM last night, before giving Chase’s site another whirl. Boom! We got in, and were super productive overnight. We’re essentially operating in shifts over here, as it seems that some platforms (notably Chase’s) do better on off-hours, when they’re not under siege from literally the entire country. So, we’ll be back at it again tonight – when most people are sleeping, we’ll be firing those apps!
No word at all from Citibank. This is now beyond embarrassing. Chase might very well get to relinquish their crown after all, and we may get to anoint another “King of Disappointment.”
U.S. Bank is open, but only for single-owner businesses or single-owner non-profits. They expect to be ready for multi-owner entities at some point in the near future. When? Who knows.
As of an hour ago, we heard that $70 Billion dollars is already gone, and 250,000 businesses have already applied nationwide. It’s hard to know truly what that means, as the Treasury Secretary announced that $35 Billion was already funded last Friday, when we know, factually, that no banks had even begun officially processing yet. He must have been referencing all of the “under the table” deals that were made, but I digress. Even if that is the case, that’s not all bad news – that means that only 10% of the pot was drained over the last 2 business days. That’s a pace that we can work with. The nightmare is obviously if the whole $349 Billion is gone in a day or two, when all application platforms are crashing every 10 mins. We know that Congress is being asked to get another $250 Billion ready to infuse into the pot when it drains, and I hope they do. But it’s not a guarantee that they do. So, our focus is on getting these PPP applications in ASAP, so none of our people miss out.
Other things we should be thinking about:
Real Estate Roundup by Mayan Bouskila and Joe Taylor
Rent is still due? Rent is still due!
Rent is still due. That is the unfortunate reality we are all facing right now. Our elected officials neglected to deal with this hulking, screaming elephant in the room, leaving us (once again) to hold the bag. So, here are a few quick, but important notes about rent and how to protect yourself.
First, whether you already made arrangements with your landlord, or continue to negotiate, any agreement regarding your rent payments must be in writing and it must be signed by your landlord. Though, we do recommend that you sign the agreement as well.
Additionally, the State’s Order banning eviction proceedings for 90-days does not prevent your landlord from serving you with a default notice if you are unable to pay April’s rent. So, while you cannot be evicted, your landlord can terminate your lease. You have certain rights that do not expire upon receipt of a default notice, but they will, if you fail to take action before the deadline set forth in the notice expires. This includes filing a request with the court to enjoin your landlord from terminating your lease. As such, it is imperative that you contact us if you receive a default notice.
More on that. Any notices from the landlord must be served on the tenant as set out in your lease. This means that address for services that you listed in the lease is where this notice would be sent. Unless negotiated in your lease, the landlord is not required to send these notices to you by email.
Please make sure you are regularly checking your address for notices from your Landlord, or ensure this mail is being forwarded to you. Some cure provisions can be as short as 1-2 business days! If you get any kind of notice from your landlord, call us immediately!
As per Jerry: “You gotta make it somehow, on the dreams you still believe.”
Hang in there,