Deleted member 2897
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We are considered an essential supplier because of a slice of our customer base. That being said, tourism/hospitality is a big part of our business and that sector has been hard hit from Charleston down to the Florida line because of the local/state mandates. Restaurants are takeout or delivery only. Bars/nightclubs have been closed. Tour companies have been closed. Schools/colleges are closed (home schooling doesn't require toilet paper, paper towels, etc). Local businesses that are considered essential have moved to teleworking so no need for janitorial services to clean offices. Customers that consist of multiple restaurant groups have decided that they need to close all groups (why they didn't remain open for takeout or delivery is beyond me because I know they are capable of doing that). We're having a problem with daily NSF checks that we more than likely won't be able to collect. We have customers that are requesting to pay in 90 days (as opposed to 30 days) or else. On top of all this, our vendors are now pushing for payment before invoices are even due. One vendor in California (new to us) required us to wire $7000 to them before we could even place an order for N95 masks.
My gut tells me that there will be additional cuts in the next couple of weeks. Our lawyer advised to go ahead & make deep cuts now because "death by a thousand cuts is extremely bad on employee morale". Unfortunately, the owners didn't have the guts to make all cuts needed now so...
I’ve wondered if the business loans in the stimulus would even be used much, despite the fact they could be forgiven completely if employees weren’t fired. I’ve wondered if the risk of being stuck with the loan is too high - because if things don’t change soon enough, the loan would run out and you’ll be right back in the same place, facing the reduction in force but now with a huge loan hanging around your neck. Any insight into the applicability of these loans to your business?