Fight the Recession with Small Business Loans and ZERO Mortgage Rates with the CARES Act


Hi everyone, this is Dr. Nitin Chhoda
where I help you master your mind before you master your money. Now there has been
some BIG BIG BIG news from the recent Cares Act and I spent several hours
eating the entire 880 page Cares Act and there’s some BIG BIG BIG news here for
us and that’ll help us combat this recession that we are in. There’s free
money with two small business loans now in case you’re thinking but I don’t have
a small business I have news for you if you’re a sole proprietor if you’re
someone who has a single member LLC or if you’ve had any business of your own
where you’re responsible for negotiating with other vendors or hiring contractors
and paying people. You could qualify for this and even if you don’t there’s some
amazing content in this video I’ll teach you how you can get zero mortgage rates
for the next 180 days now this does not mean that your mortgage
will be waived completely. It means you will stop making payments for the next
180 days. So let’s jump right into this and I’ll tell you what this is
about our first give you a summary of the content in this video there are two
small business loans that you absolutely must be aware of there’s the Economic
Injury Disaster Loan which actually gives you a $10,000
forgivable advance which is mind-blowing and you need to rush to get this and
there’s also the Paycheck Protection Program which essentially gives you a
forgivable loan, get that, a forgivable loan if you use it to pay employees, if you use it for payroll, if you use it for for
rent, for utilities it’s just mind-blowing that these programs are
available and we need to take advantage of them because these are available for
a limited time and as far as a zero mortgage is concerned for 180 days this
is a program called mortgage forbearance. So let me quickly give you an overview
of the mortgage forbearance program I alluded to that briefly in one of my
other videos but the mortgage forbearance program is essentially zero
mortgage rates you’re basically not paying your mortgage for up to 180 days
in fact let me show. Here’s the interesting thing okay the I’m gonna
read directly from the PDF of the affordable Care Act upon receiving a
request for forbearance from a borrower under subsection B the servicer shall
with NO additional documentation required other
than the borrower’s attestation to a financial hardship caused by COVID-19
essentially not charge any fees penalties okay and provide, and this is
the key part, forbearance up to 180 days with an additional period of up to 180
days that means you can NOT pay your mortgage for up to six months and then
request them that you don’t pay your mortgage for an additional six months
just unbelievable. Now in order to take advantage of this you have to have
what’s called as a federally backed loan meaning a loan from Freddie Mae for
Freddie Fannie, Ginnie Mae, USDA, VA and so on so forth. So the thing is that you
need to talk to your bank and confirm and I mean if you got your mortgage
through a credit union it is federally backed so step one is to confirm that
you have a federally backed mortgage that would be step one. Step two is you
have to understand how the mortgage applies to you so if you’re in a
single-family home that’s one to four units with a federally backed mortgage
all you have to do is a test affirm or simply say you have a direct or indirect
hardship which we all do as a result of COVID-19. So all you have to do is attest
to that now if you’ve got a multi-family and let’s say an apartment building then
it’s five or more units the rules for that are different there’s more
documentation I’m gonna stay focused on one to four units which is townhouses,
condos, apartments, homes so if you are in a single-family home and you have either
direct or indirect hardship as a result of the COVID crisis which we all do then
you qualify for forbearance this is the key phrase here, you qualify for forbearance
now this doesn’t mean you go okay I’m gonna stop making my monthly payments
this simply means that you now apply for forbearance to the bank. Now if you apply
for forbearance the bank is required to get back to you and as long as you
attest that you have some sort of a limitation the bank will actually say
all right you know your your mortgage you know you are now in the forbearance
program so what you need to do is step one apply for forbearance step two once
you get approved for forbearance which it’s easy to get approved all you have
to do is say that you have hardship maybe you lost your job maybe you are
the sources of income have dried up and then
what the bank will do is the bank will come back to you and say okay you’re
approved for forbearance. Now remember you’ve got to get some sort of
confirmation from the bank before you stop making payments maybe you get an
email from them, a fax from them perhaps you get a letter from them once you get
that letter and you want them to state in that letter that they will not report
late payments to the credit bureaus they will not charge any finance charges or
late fees once you get that in writing you can now stop making your payments.
Now keep in mind if you are already current with your payments which I’m
hoping most of us are and then you apply for forbearance you stop making future
payments and it will not should not impact your credit but if you already
late with your previous payments then it may still continue to be a late payment
so just keep that in mind so assuming that you’re current with your federally
backed mortgage payments and now you apply you should be able once you’re
approved for the program to stop making future payments that’s incredible and
the reason I you know I call this a zero mortgage or zero mortgage rates, just
think about it you are not paying your mortgage by the way the bank might say
90 days forbearance just take it and then before the 90 days is up ask them
to extend the the forbearance period now by the way the Cares Act says you can
have 180 days and then an additional 180 days. Now that’s
incredible because let’s say the bank just gives you 90 days take it ask for
another 90 at the end of that 90 asked for another 90 and at the end of that 90
ask for another nine you know the reason I say it’s a zero mortgage rate is you
are not paying principle you’re not paying interest for this period which is
just unbelievable because now at the end of the at the end of the forbearance
period the bank will probably just try and say all right give me back all the
money you should negotiate with the bank to ideally let them pay you all those
payments at the end of the loan thereby extending the loan by one year at the
very end that that would be the best and that would mean that you essentially
make these payments but not now you make the payments several years 10 15 20 25
years down the road depending on when you got your mortgage. You MUST negotiate
with your bank to let you do that because when you do that again this
YouTube channel is about mind over money when you do this you’re using your mind
you’re holding on to your money and you’re essentially extending the payment
which is what you should be doing. Always remember one principle “Today’s
dollars are more valuable than tomorrow’s dollars” the reason I say that
is as time goes by money loses its value because of inflation something that
costs $3 today cause $3.25 tomorrow let’s say you’re making X
amount of money today next day you’ll make a little bit more money because you
got a raise so you’re going to fundamentally all else remaining equal
you’re fundamentally going to make a little bit more money and spend a little
bit more money as time goes by fundamentally because of inflation money
loses its value in fact if you have $10,000 in your bank account today if
you leave that money there doing nothing 17 years from now that money will only
have $5,000 of purchasing power why because what you can buy for $10,000
today is going to be costing much more which is $20,000 17 years from
now because of inflation so 17 years from now your $10,000 will effectively be
today’s $5,000 so money loses value so if you can get this forbearance and then
convince the borrowers either by submitting an online form or submitting
some sort of a formal request to them in writing don’t just do it in person do it
in writing and you get them to extend your loan at the very end that would be
phenomenal and guess what banks are making tons of money they have been
making tons of money back in the 2008 financial crisis they were a part of the
problem today they are a part of the solution. You have to push for it you
have to ask for it. Now the Cares Act talks about the forbearance but the Cares
Act doesn’t talk about how you pay back the money because that’s between you and
the lender as far as a federal government is concerned. So what you
should be doing is get the apply for forbearance, get the forbearance and then
once you get the forbearance what you do is you turn around and you say listen I
I want you to extend the life of the loan I want to pay this money off at the
very end that would be that would be phenomenal so as far as loan payback
options are concerned definitely definitely
negotiate with the bank because everything is up for negotiation. What
you negotiate for is what you get mind over money principle right here “what you
negotiate for is what you get” I want you to subscribe to this channel because I’m
going to be giving you tons and tons of life principles life ideas on how you
can master your mind and money over the coming you know in the future
in this channel so definitely subscribe to our channel you’ll get a ton of ideas
that will help you that will help you with mind over money principles like
these I call these “mind over money principles” so we talked about the
mortgage let’s now talk about the two small business loans. The Economic
Injury Disaster Loan which is available on the Small Business Administration
website is extremely simple to complete the economic injury disaster loan is a
loan where you can ask to borrow money okay and the interest rate will be 3.75%
spread out over several years but here’s the kicker,
whenever you where as soon as you apply you’ll get a $10,000 loan
advance which will be forgiven. These actual words from the from the Small
Business Administration will be forgiven so just for the action of applying, it
will be forgiven I’ll teach you how to apply and then there’s the paycheck
prevention excuse me the Paycheck Protection Program, the Paycheck
Protection Program allows you to borrow money from the federal government at two
and a half times your monthly payroll two and a half times your monthly
payroll now there are some maximums so one of the maximums is a maximum of
$100,000 per employee so let’s say your monthly payroll if you’re in a small
business I’m gonna throw out a number it’s $10,000 you can borrow
as much as $25,000 and as long as you use that money for covered expenses such
as rent, payroll, utilities that money will be entirely forgiven and those loan
payments are deferred for the first seven months. So just think about this if
you are if you are a company with multiple employees and now all of a
sudden you’ve had to follow them you had to you’ve had to let people go for that
matter if you’ve been unemployed your employer talk to your employer tell your
employer to get the Paycheck Protection Program because the money that they get
from the Paycheck Protection Program actually comes right back to you.
So if your employer gets by the way if your employer gets a Paycheck Protection
Program and they don’t pay you they have to pay that money back to the federal
government so if your employer gets the Paycheck Protection Program which I’ll
tell you about the program in just a minute and then your employer then pays
you okay and then you do some sort of work
obviously for that money work from home or there has to be some way there’s to
be some economic exchange obviously but if your employer pays you that money
comes back to you. Think about it the government would prefer to do this as
opposed to have unemployed people applying for unemployment. The government
would prefer to do this as opposed to have an unemployed people not being able
to pay their rent the government would prefer to do this as opposed to you.
As opposed to people in the country and not being able to buy food think
about that, that would cause social anarchy that is not what the government
wants. The government fundamentally does not want to to house people, does not
want to feed people because it’s a huge burden
that’s why landlords who own single-family residences like myself we
can just get forbearance. That’s why that’s why business owners like myself
we can get the Paycheck Protection Program because now when we use the
money legitimately which we will the money comes back to employees which is
phenomenal which is a good thing. Now let’s talk about the Economic Injury
Disaster Loan and one more thing these are the two links and I’ll put
these two links in the video below the video down here so you can access these
two links and get more information from the Small Business Administration
website but these are extremely simple and there’s some documents as well
pertaining to the Paycheck Protection Program that are going to be extremely
valuable. I’ll provide a link to those documents in the video description as
well but here’s the bottom line if you have many employees the paycheck
protection program is something you should consider and jump into right away
because because there are certain deadlines that are in place and the
faster you apply the faster you will get in line. The Economic Injury Disaster
Loan can work for you if you’re a single family owner, LLC ,if you’re a sole
proprietor, if you’re if you’re a one-man show, let’s say you’re working from the
basement of your house doing I don’t know printing t-shirts you can apply for
the economic injury disaster loan and get the $10,000 loan advance.
Just unbelievable if you think about it really quick I will show you how to
apply for the economic injury disaster loan and then I’ll walk you through some
documents for the paycheck protection program one more time if you like this
information and you like all these mind our money principles I urge you to
to subscribe to my YouTube channel you’ll get a ton of updates you’ll get
some phenomenal content and it’ll be my honor and my privilege to be able to
communicate this to you and to be able to get you all this in cutting edge
information on time. So please subscribe to my youtube channel just go down there
and hit the subscribe button it takes you one second to do but it gives me, by
the way I look at the number of subscribers subscribing every 15 minutes
so if you do that it gives me the motivation, it gives me the energy, it
gives me the enthusiasm to continue creating this kind of content for you so
please please please please please subscribe. Alright now let’s talk about
the Economic Injury Disaster Loan. Here I am on a Small Business Administration
website this is not a good image. I mean look at the header image I’d rather see
an image of a waterfall or a beach or something but when you click on the link
right here at the top and by the way I provided this link in the description.
You come to this page and all you have to do is complete this page get all the
way to the last page you check a box that says that you can you can you would
like to be considered for the $10,000 advance and you get the advance. This is
something that will be forgiven. Speaking of forgiven here’s an email
that I actually got from the Small Business Administration is a screenshot
of the email we know you’re facing challenging times that’s the first
paragraph now read the second paragraph closely this is an email from the Small
Business Administration on March 27 this was centered law including the
opportunity to get up to a $10,000 advance on the Economic Injury
Disaster Loan. This advance may be may be available even if your EIDL which is
the Economic Injury Disaster Loan application was declined or is still
pending and will be forgiven will be forgiven. So all you have to do is take
five minutes to apply for this it takes less than five minutes. By the way I have no
idea why they say it takes two hours and ten minutes it doesn’t it takes less
than five minutes to apply for this apply on the last page they’ll ask you
to check a box and again this is available to a business with no more
than 500 employees this is available to an individual who operates under the
sole proprietorship with or without employees or as an independent
contractor. If you have ever received a 1099 from anybody you can apply for the
economic injury disaster loan. If you are a one man LLC that that doesn’t have any
employees that all you do is hire a bunch of independent contractors, you can
apply for the Economic Injury Disaster Loan. What’s the Paycheck Protection
Program, the Paycheck Protection Program is ideal if you have a lot of employees.
This is a document that outlines just basic information about the Paycheck
Protection Program. It provides small businesses with funds up to eight weeks
of payroll costs including benefits. Funds can also be used to pay interest
on mortgages, rent and utilities so if you are in a business you run a business
you’ve got multiple employees you’ve got your rent you know your commercial rent
that’s where the paycheck protection program is. Look at these beautiful words
FULLY FORGIVEN funds are provided in the form of loans that will be fully
forgiven when used for payroll costs interest on mortgages rent and utility
is due to likely high subscription you know that’s that’s because there’s going
to be a whole whole bunch of people applying. I don’t want you to get get
into the semantics of it I want you to apply, I want you to apply for the
economic injury disaster loan I also want you to apply for the Paycheck
protection program the idea of the Paycheck protection program is that
employees must be kept on the payroll or they must rehire quickly. So all small
businesses are eligible this is an incredible program that I think all of
us should apply for. I would encourage all of you please to apply for the
Paycheck protection program if you have any questions type them out in the
comment section below if you want me to do a more detailed video on the Paycheck
protection program please subscribe to my channel. Please type in the comments
below and then I’ll make another video for you folks. I appreciate you all
remember mind over money mind over money we will all get through this together
let’s stay strong and we’ll all come out on the other side of this together. So in
summary, number one apply for mortgage forbearance. Number two apply for the
Economic Injury Disaster Loan if applicable to youj. Number three, apply for
the Paycheck Protection Program if you’ve got a bunch of employees and if
you’re concerned about making rent. Just create stuff all around let’s do this
we’ll get through this together. Thank you so much!

1 thought on “Fight the Recession with Small Business Loans and ZERO Mortgage Rates with the CARES Act

  1. Hi Dr. Chhoda, I don't have employees except for my wife who is part time, can I still apply for the ppp. I know I can use the funds to pay for things like rent but can i get the loan if I really don't have any employees.

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