EIDL and equipment

evo

Well-Known Member
Location
My Island, WA
Hey y’all. I’m seriously considering taking the EIDL loan which maxes close to 90k for my business. I know I don’t need 90k of working capital but this seriously has my gears going.
I have a private loan out for my mini which is about $500 per month, and I’m considering buying a chipper in the $40k range. I have a about 4 quotes from my local bandit dealer and I’m considering either a 90xp 89 hp gasser with a winch or a 12xpc 89hp gasser. They are about the same price.
So the big question is I can get this loan, and use it to pay off the mini, and buy a new chipper. This would give me the same monthly payments (I’d throw everting I can and pay it off sooner). The benefit is if I get in a slump I can string out the loan for as long as I need (30 years), and get the new chipper ahead of schedule with less aggressive payments and terms. Or I can sit tight with what I have.
I currently have a good thing going employee wise, but historically I have had a very difficult time finding quality help. The current bottle neck is the chipper, and I’d likely keep what I have due to how light the machine is and easy to push around with the mini. Most I’d be able to get out of the current chipper is about 6-7k, so it’s worth holding on to for specific jobs.
Incoming work has slowed with the virus, but I’ve been holding at 4-8 weeks out, when this time last year I was closer to 8-12 weeks.
What would you do and why?
 

Reach

Well-Known Member
Location
Atglen, PA
Personally, while the deal sounds very good, I would not do it. I tend to not trust any sort of government backed or government funded loans, so I prefer to keep them as far away from me as possible. If not for that, it sounds like a good plan.
 
  • Like
Reactions: ATH

evo

Well-Known Member
Location
My Island, WA
Personally, while the deal sounds very good, I would not do it. I tend to not trust any sort of government backed or government funded loans, so I prefer to keep them as far away from me as possible. If not for that, it sounds like a good plan.
Interest is 3.75%. Can you expand on why you don’t trust gov loans?
 

Reach

Well-Known Member
Location
Atglen, PA
Interest is 3.75%. Can you expand on why you don’t trust gov loans?
Perhaps I am simply paranoid, but I don’t trust the government in general. There’s usually a catch buried deep inside that allows them to “call the note” at any time, and a couple others that give them some loopholes to use in their favor.

With the SBA loans, they can call the note if you are arrested for a felony or one of a long list of non-monetary misdemeanors. No need to be convicted, the arrest alone apparently makes you guilty enough. When I found that clause years ago I quit reading and decided to stay far away from government money.

I also have to close friends who are cyber security experts, and who both work for the federal government, and they’ve both told me to not trust the government. That says something right there.
 

evo

Well-Known Member
Location
My Island, WA
Perhaps I am simply paranoid, but I don’t trust the government in general. There’s usually a catch buried deep inside that allows them to “call the note” at any time, and a couple others that give them some loopholes to use in their favor.

With the SBA loans, they can call the note if you are arrested for a felony or one of a long list of non-monetary misdemeanors. No need to be convicted, the arrest alone apparently makes you guilty enough. When I found that clause years ago I quit reading and decided to stay far away from government money.

I also have to close friends who are cyber security experts, and who both work for the federal government, and they’ve both told me to not trust the government. That says something right there.
That’s news to me. I knew you couldn’t apply for a loan with a felony, but never read anything that said they would collect if you were accused for one. Shit they hand out felonies at grade school these days
 

New threads New posts

Kask Stihl NORTHEASTERN Arborists Wesspur TreeStuff.com Kask Teufelberger Westminster X-Rigging Teufelberger Tracked Lifts Climbing Innovations
Top Bottom