Ask Robina - May 9, 2023

Hi Robina! 

During the pandemic, my business took advantage of the EIDL offered by the SBA.  I now owe $100,000 and payments start this month.  I am stressed out about how much is owed and kicking myself for taking on so much debt. Why don’t they forgive it the way they did the PPP? Given my profession, I feel like I should be better with these kinds of financial decisions and it all feels so overwhelming.  How do I get out of this hole? 

Feeling Hopeless! 

Ask Robina ~ Submit your questions here.  Topic for May: Pivot, Push, or Pause 

Hello Friend,  

You are not alone in what you are feeling. Many businesses are being faced with the same concerns you are as the payments start to become due.  Take a deep breath and a few more.  When things feel helpless, it is easy to spiral and get caught up in a whirlwind of emotions.  So… before we dive in let’s calm your nervous system a little with some breathing. It can feel futile to slow time when everything feels like it has to happen now.  You are the one driving the ship and want to have a clear head.   

PPP and EIDL are two different programs, and one allows for forgiveness while the other does not.  Those are the rules for now, and while it is possible they may change, it is best to move forward with the belief they won’t.  And that is okay. 

CONGRATULATIONS! 

First, CONGRATULATIONS!!!  

You may think, “What the heck Robina I just said I have $100k in debt?”.  Yes, but that doesn’t change the fact you navigated a global pandemic, uncertainty, possibly health scares, and/or loss of loved ones.  That is like being in an ocean during the perfect storm of a tsunami and a hurricane in the Bermuda Triangle. You made it through some unprecedented times and your business is still moving.  Had you gone through a health crisis you would be termed a survivor.   

You and your business are survivors.   

• Stand up, raise your arms in the air, and shout “I AM A SURVIVOR!!”.   
  • Do it as many times as you need and keep doing it until you feel it inside.
• Tears may come.  
  • Shed them.   

• Doubt may arrive. 
  • Let it.   
• Anger may bubble.
  • Release it 
    

It may seem silly to do this but give it a try and see how it feels.  Trust that there is something in it that will help you. 

INVESTMENT 

Speaking of help.  The SBA offered the EIDLs to help many small businesses like yours.  While we would all prefer the money flowing in to be from clients/customers the reality is the origination point was in the form of a loan.  When you decided to draw on the funds there was likely a reason behind it.  Do you recall what it or they (likely many reasons) were?   

Take Inventory 

Make a list of all the things you were able to do because of those funds.  For example:  Keep employees, cover rent, invest in hardware/software, take draws, invest in educational programs, or keep the doors open. 

Why is this important?  When the payment comes due it is easy to focus on what is happening now and be critical of past choices. The truth is the loan helped you and many others in a multitude of ways. 

PRESENT MOMENT 

Let’s talk money.  The deferment period has ended, and the payment is due.  Try not to get so focused on the total amount that you lose sight of what you need to do in this moment.  Make one payment. The SBA isn’t asking you t repay everything all at once.  I did a quick back-of-the-napkin calculation of $100,000 at 3.75% for 30 years (excluding the accrued interest), and the monthly payment would be $463.12.   

How does the idea of a $500.00 monthly payment feel? 

Are you able to get excited amount making the payment?  Stress and excitement feel the same to your body so you might as well tell it you are excited.  Whenever I do this there is a sense of ease around the task in front of me. 

TIPS:  When the voice of false belief creeps in around debt or purchases build in a practice of gratitude for what you were able to do with the money. Example Thank you money for enabling me to pay for the car repair so I could get to and from work. 

How would it feel to tell yourself “Thank You!”?  Thank you to the past you that believed in your gifts, skills, and abilities to say yes to the SBA’s offer of support during a challenging time.  The decision made then allowed you to be where you are today.  I am sure you are a hard worker and have spent more than one night worrying about your business.  Give yourself a thank you for your dedication.  You would do the same to any friend that stood by your side the way you have. 

Loan Support 

Perhaps your business is just making it by a fine line or you are in the red. While I don’t claim to know all things EIDL it is my understanding the SBA has ways to help you. According to the SBA website struggling businesses can declare hardship and: 

• Make partial payments of 10% the regular monthly payment with a minimum of $25 (for six months). 
• During the hardship period, borrowers can make larger payments (voluntarily) 
• The regular payment will resume after the hardship period. 
• The borrower may be able to renew the hardship, if necessary. 

If you, or someone you know, needs assistance, reach out to the SBA and inquire about this option.  Don’t just let the payment date come and go without any action.  Not making a payment won’t make the problem go away and will just add to your stress.   Take small micro-actions in the direction that will create some peace of mind. 

Conclusion 

To wrap this up, acknowledge you are a warrior, take inventory of the things you were able to accomplish because of the loan, express gratitude for the money, and focus on the payment in front of you (not the total).  You have made it this far and can take a new step in the direction of your future. There are people available to help and provide support for you and your business.  Keep reaching out, asking for help, and thanking yourself for everything you do. 

With Gratitude,
Robina

Robina is a Certified Money Coach and retired CPA.  She works as a guide for people to discover the freedom to dream again by transforming their relationship with money. If you want to know more about Robina, you can visit her at www.robinabennion.com. 

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