I own a contract tech-services company. Fifty-eight fulltime employees with 379 contractors, the average tenure of which have worked with our company about eight years (very good for this industry). Revenue is down 82% from two months ago. I have put every penny of my wealth back into the company and the corp. credit lines are now maxed. I kept paying everyone because I believed the government would want to keep companies like ours in business. We have great people here and I wouldn’t want to lose any of them—- that includes almost all the contractors.
Applied for the SBA bailout and with my perfect credit, company’s perfect credit, and the $2 million in real estate I own outright, the SBA is offering $110,000 loan. I was expecting $1.5-$2 million. We are fucked. It took me 12 years of work most couldn’t imagine, risking everything to get to this point. Company had net income of $3.4 million last year. 30% of net profits are shared with Fulltime employees based on tenure. My people are amazing people with great families, with an average quality of life that I dreamed of helping my workforce attain when I first started this company. And now because of a virus and what I think was poorly thought out response, myself along with hundreds of people who depended on me are screwed.
I have never been this sad in my life. Not scared. Sad.
Cheers all, off to have a drink with my gal. I hope you all are fairing well, and if not I hope you do sometime soon.
Update:
PPP wouldn’t be a good option for our company, so we applied for an Economic Injury Disaster Loan (also via SBA). This loan actually does require good credit and defers payments for 12 months. Due to our largest expense being contractors, this is the only SBA option that is workable.
Same problem for any tech services companies that have both employees and 1099 contractors.
AC