Paul Facchina interview on 98.3 Star FM TBone & Heather Morning Show скачать в хорошем качестве

Paul Facchina interview on 98.3 Star FM TBone & Heather Morning Show

Small Business Owner Asset Protection Act: The impacts of COVID-19 have been profound on business across America. As we look at the landscape of what has occurred, Executive Orders form State Governor’s, County officials, and City Mayors have had a disproportionately negative impact on small businesses even though they had the best intentions when implemented. We hear on business news outlets that some of America’s largest publicly traded businesses have had a financial windfall with sales and profits increasing disproportionately more than small businesses owned directly by your constituents. Those “big box” corporations were selected as “essential” while in several instances only a small percentage of what they sell falls under the “essential” classification. Small Business owners across America have in many cases been forced to remain closed since March 2020, or permitted to open at operating capacity at 25% or less than normal. That is devastating and no small business within your district would ever have opened up their doors initially if they had modeled 25% of capacity; the math simply does not work. Many of these small businesses have recently been ordered to close again. These businesses range from restaurants, to fitness, to family entertainment, to hair and nail salons, to movie theatres and beyond. Many of these small business owners have business loans either through the Small Business Administration (SBA) or conventional loans that required personal guarantees to pay the loan in the event of loan defaults. To add to this burden, many of the leases for where these small business owners conduct their business also have personal guarantees. This means that these small business owners may lose their personal homes and life savings as a result of these personal guarantees. Prior to the COVID-19 pandemic many of these businesses were successful. These businesses provided jobs and services that their customers purchased while providing and income for the small business owners family. Without the pandemic, many of these businesses would continue to thrive. There have also been instances where a small business had an agreement to sell their business to a qualified purchaser. In some cases, these qualified new owners were minority entrepreneurs seeking their American dream only to have the deal fail to close because some of America’s largest banks decided to rescind loan approvals due to the current business climate as a result of COVID-19. It is imperative that government act and introduce additional legislation to support struggling small business owners at the Federal and State level across all 50 states in the USA. Small Business owners across America are asking for your consideration on the following: 1. Protect small business owner’s personal assets if their businesses are incapacitated due to mandated shutdowns and reduced capacity mandates. a. Protect small business owners by severing and voiding all personal guarantees and lines of credit signed for business leases and business loans. This will protect small business owners from having to file personal bankruptcy and protect their personal assets from business creditors, banks, landlords if their businesses fail due to the impact of COVID-19. This does NOT protect the business assets from business bankruptcy. Business bankruptcy laws remain intact and the assets of the business remain as collateral. b. Small Business owners would receive personal guarantee relief provided the business was profitable with adjustments for earnings before interest, taxes and depreciation as demonstrated based upon in one or more of the prior three federal tax years (2017, 2018 or 2019). c. Landlords that lose the personal guarantee rights should receive tax credits in equal amount to lost small business lease revenue. The duration of the tax credit will need to be in proportion to the personal guarantee duration or until the space is leased (whichever is shorter). d. Banks will establish a separate balance sheet item for COVID-19-related business loan defaults and receive tax credits from the federal government for portions of loans not already protected by Federal Government guarantee (Including SBA Loans). 2. Provide additional funding to support businesses heavily impacted by government orders that have forced businesses to remain closed or operate at 50% or less of their normal operating capacity due to the effects of COVID-19. Severing the Personal Guarantee will ultimately protect Small Business Owner’s personal assets from creditors and foreclosure. It is important to solve a major and growing problem by allowing Small Business Owners to retain their personal assets so they can live to fight another day. I can be directly reached at (301) 343-3887. Thank you for your support regarding these important issues.