Oops, I did it again…
Congress underestimates (or overpromises) aid in the Restaurant Revitalization Fund.
In this Issue:
RRF Update – Two steps forward and one step back
PPP Update – Funds slow to a trickle
The Economy and Interest Rates – The revised numbers
RRF Update: Of all the programs Congress put together in the Year of the Covid (more appropriate than the Year of the Ox), the Restaurant Revitalization Fund – RRF - was the most anticipated. With a two week head’s up and even an application to practice with, it was like the contestants ready to press the button for the Daily Double in the Jeopardy Round, or a Bob Baffert horse waiting to get out the gate. Consequently, in the first 10 days, the requests for funds is double the amount allocated by Congress – 266,000 applications seeking $65 billion, just slightly over the limit of $28.6 Billion. However, of the 266,000, about 147,000 were for small businesses owned by women, veterans and minorities with requests totaling $29 Billion. Only those establishments will get their application reviewed in the first 21 days of the program. All others have to wait until May 24 to have their application processed.
PPP Update: All eyes are on forgiveness and I can honestly say, the clock is ticking. If you received your first draw in April 2020, you need to apply for forgiveness by July 10 and that is assuming you are using 24 weeks of forgiveness. If you are still looking for funds, go to the SBA website for a list of lenders, but many have stopped their PPP processing. If you cannot find a local community lender, there is always the black hole of PPP applications, also known as Womply; sounds like some think out of Harry Potter, but it is supposed to do PPP loans. I suspect it works well with Sole Proprietors with no employees, so consequently, it is better than nothing. If someone has used them successfully, please let me know.
The Numbers: Kiplinger is forecasting 6.6% GDP for 2021, the 10-year note at 2%, the 30 year mortgage at 3.5%, and unemployment down to 5% by year end. HOWEVER… inflation (trigger word!) is set to be at 4.4% by year end. However, some politicians continue to try the old Jedi mind trick “This is not the inflation you are looking for… move along, move along…” Nonetheless, crude oil is also estimated at $70/barrel and the Social Security COLA at 4.5%. I haven’t seen that number since I took over my dad’s finances; now he’ll be able to order desert with his early senior special.
Plywood is so expensive that Lowe’s is selling 4x4 sheets of ¾ inch plywood for $36. That’s not 4x8; that’s 4 feet by 4 feet.
