|
|
Post by u1682002 on Apr 3, 2020 16:24:10 GMT -5
I am wondering if MNKD is qualified for a loan from the Coronavirus small business program. It is almost free money with first come first service. MNKD has ~250 employees and burning rate ~8mil. If MNKD can get such loan for 3 months operation cost, then MNKD will be in much better shape in terms of its balance sheet. As a mnkd share holder, I truly hope they can work diligently on this.
|
|
|
|
Post by ilovekauai on Apr 3, 2020 16:40:11 GMT -5
I hope management is all over that and the application already over at SBA!
|
|
|
|
Post by nylefty on Apr 3, 2020 16:52:43 GMT -5
I hope management is all over that and the application already over at SBA! You have to apply to banks for the loans and many banks are refusing to participate in the program or are only lending to companies that have borrowed before from that bank. The maximum loan is $10 million.
Mark Comon, owner of Paul’s Photo in Torrance, said he had been banking with Bank of America for 30 years. Yet when he logged onto the bank’s website early in the morning, he was told he couldn’t apply for a loan because he’d never borrowed money from Bank of America before...
Rodney Ramcharan, professor of finance at USC’s Marshall School of Business, said that banks protect themselves from risk by favoring businesses that have existing loans or credit cards. They have already combed through these borrowers’ finances, he said, making it safer to lend.
But that leaves out customers like Edward Mostel, a cardiologist in Palm Beach, Fla., who is struggling to keep his practice open. Even as the number of people with the virus has surged in Florida, his clinic’s 32 employees have continued to see patients, mindful that if they close to protect their health, their most seriously ill patients would have no choice but to go to an emergency room.
Yet on Friday morning, Bank of America told Mostel that he wasn’t eligible for a loan.
“I give Congress credit for acting so quickly, but it’s a very frenetic and chaotic setup,” he said. “If I can’t get some support from the federal government, there’s a great chance we’ll have to furlough people. And all because we’ve been too conservative in not taking out loans.”
|
|
|
|
Post by rfogel on Apr 3, 2020 17:00:34 GMT -5
I hope management is all over that and the application already over at SBA! You have to apply to banks for the loans and many banks are refusing to participate in the program or are only lending to companies that have borrowed before from that bank. The maximum loan is $10 million.
Mark Comon, owner of Paul’s Photo in Torrance, said he had been banking with Bank of America for 30 years. Yet when he logged onto the bank’s website early in the morning, he was told he couldn’t apply for a loan because he’d never borrowed money from Bank of America before.
Are the banks themselves responsible for the SBA debt? If so, I can see why under current circumstances they might be reluctant to go out on a limb with new loans. |
|
|
|
Post by seanismorris on Apr 3, 2020 19:30:43 GMT -5
You have to apply to banks for the loans and many banks are refusing to participate in the program or are only lending to companies that have borrowed before from that bank. The maximum loan is $10 million.
Mark Comon, owner of Paul’s Photo in Torrance, said he had been banking with Bank of America for 30 years. Yet when he logged onto the bank’s website early in the morning, he was told he couldn’t apply for a loan because he’d never borrowed money from Bank of America before.
Are the banks themselves responsible for the SBA debt? If so, I can see why under current circumstances they might be reluctant to go out on a limb with new loans. Many small businesses use credit cards rather than loans (<15 employees) or net30 from suppliers. The loan programs are going to be useless to the ones that need it the most. I’m seeing a flurry of pamphlets from restaurants (single location) saying they now deliver... the desperation is setting in. Just think of all the massage parlors, beauty salons, etc. that will be out of business in a month. |
|
|
|
Post by nylefty on Apr 3, 2020 19:52:27 GMT -5
Are the banks themselves responsible for the SBA debt? If so, I can see why under current circumstances they might be reluctant to go out on a limb with new loans. Many small businesses use credit cards rather than loans (<15 employees) or net30 from suppliers. The loan programs are going to be useless to the ones that need it the most. I’m seeing a flurry of pamphlets from restaurants (single location) saying they now deliver... the desperation is setting in. Just think of all the massage parlors, beauty salons, etc. that will be out of business in a month. Barbers too. They were ordered to close their doors here in New York State and mine will probably be out of business before he can reopen. I needed a haircut weeks ago and now I really need one! |
|
|
|
Post by neil36 on Apr 3, 2020 20:10:52 GMT -5
I would think that MidCap would be rolling up their sleeves and doing the paperwork for them to make sure MNKD gets one of these loans and abides by its covenants. If you are dealing in high-risk lending and your borrower can basically get ten million dollars of free liquidity just for keeping all their employees for a few month.....why wouldn’t you aggressively pursue that?
|
|
|
|
Post by longliner on Apr 3, 2020 21:06:39 GMT -5
Many small businesses use credit cards rather than loans (<15 employees) or net30 from suppliers. The loan programs are going to be useless to the ones that need it the most. I’m seeing a flurry of pamphlets from restaurants (single location) saying they now deliver... the desperation is setting in. Just think of all the massage parlors, beauty salons, etc. that will be out of business in a month. Barbers too. They were ordered to close their doors here in New York State and mine will probably be out of business before he can reopen. I needed a haircut weeks ago and now I really need one! Hippie 🤣 |
|
|
|
Post by seanismorris on Apr 3, 2020 21:43:44 GMT -5
Many small businesses use credit cards rather than loans (<15 employees) or net30 from suppliers. The loan programs are going to be useless to the ones that need it the most. I’m seeing a flurry of pamphlets from restaurants (single location) saying they now deliver... the desperation is setting in. Just think of all the massage parlors, beauty salons, etc. that will be out of business in a month. Barbers too. They were ordered to close their doors here in New York State and mine will probably be out of business before he can reopen. I needed a haircut weeks ago and now I really need one! I went electric (#4) about a decade ago. I figured since the little bastards went on strike (receding hairline) I couldn’t be bothered anymore either. The ladies have it worse. Ponytails may become fashionable again (which I like)... I just hope they don’t use hydrogen peroxide when they run out of haircare products. |
|
|
|
Post by mnkdfann on Apr 3, 2020 22:06:31 GMT -5
I would think that MidCap would be rolling up their sleeves and doing the paperwork for them to make sure MNKD gets one of these loans and abides by its covenants. If you are dealing in high-risk lending and your borrower can basically get ten million dollars of free liquidity just for keeping all their employees for a few month.....why wouldn’t you aggressively pursue that? I'm not sure I see that. MidCap certainly doesn't want Mannkind to fail. But assuming MidCap believes Mannkind is still an ongoing business for the foreseeable future, wouldn't MidCap prefer Mannkind borrow at a higher interest rate from it? Instead of facilitating borrowing at low rates from somewhere else, that is? And if Mannkind's cash on hand dips, doesn't Mannkind pay a higher interest rate to MidCap? |
|
|
|
Post by nylefty on Apr 4, 2020 0:33:38 GMT -5
You have to apply to banks for the loans and many banks are refusing to participate in the program or are only lending to companies that have borrowed before from that bank. The maximum loan is $10 million.
Mark Comon, owner of Paul’s Photo in Torrance, said he had been banking with Bank of America for 30 years. Yet when he logged onto the bank’s website early in the morning, he was told he couldn’t apply for a loan because he’d never borrowed money from Bank of America before.
Are the banks themselves responsible for the SBA debt? If so, I can see why under current circumstances they might be reluctant to go out on a limb with new loans. They also can't charge more than one percent interest. |
|
|
|
Post by matt on Apr 4, 2020 9:33:14 GMT -5
I am wondering if MNKD is qualified for a loan from the Coronavirus small business program. It is almost free money with first come first service. MNKD has ~250 employees and burning rate ~8mil. If MNKD can get such loan for 3 months operation cost, then MNKD will be in much better shape in terms of its balance sheet. As a mnkd share holder, I truly hope they can work diligently on this. Yes. they should be eligible. The about is limited to two months of average payroll plus 25% and the funds can only be spend to defray payroll and related expenses over the eight weeks following approval of the loan. The program is intended to keep people employed, which is why the amounts are tied mostly to payroll expenditures going forward; the money cannot be used to pay down debt or other fixed costs of running a business. The upside is that if MNKD can cover payroll for two months, that frees up other cash and every little bit helps. |
|
|
|
Post by boca1girl on Apr 9, 2020 7:50:14 GMT -5
Fed just announced an update or improvement for loans to companies with up to 1 or 2B in revenues. Hopefully MNKD can be eligible.
|
|
|
|
Post by sellhighdrinklow on Apr 9, 2020 8:27:26 GMT -5
Fed just announced an update or improvement for loans to companies with up to 1 or 2B in revenues. Hopefully MNKD can be eligible. Mannkind will need to prove that the Shelter in Place has harmed the business, i.e. sales are down. |
|
|
|
Post by casualinvestor on Apr 9, 2020 8:37:20 GMT -5
Fed just announced an update or improvement for loans to companies with up to 1 or 2B in revenues. Hopefully MNKD can be eligible. Mannkind will need to prove that the Shelter in Place has harmed the business, i.e. sales are down. That won't be hard to spin..."Sales had been terrible since COVID-19 was confirmed in early Jan, and only picked back up when Trump's strong leadership turned everything back around!"     |
|
