Small Fleets Can’t Beat Repeat Borrowers AKA Owner-Operators

Small Fleets Can’t Beat Repeat Borrowers AKA Owner-Operators
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There’s federal money up for grabs again for pandemic-hit owner-operators small fleets, with about seven weeks left to apply.


The process for effectively turning a PPP loan into a grant is simple now. In other ways, the program is less restrictive than in PPP’s first round.


One drawback, however, is a hurdle for businesses looking to get a second loan. PPP2 requires a borrower to have suffered a drop of at least 25% in revenue for any quarter in 2020 compared to the same quarter in  2019.


Many trucking operations took a brief, often severe hit during the spring. Yet for the industry, it overall rebounds for a good year. Most truckers meeting the rubric with this criterion were individuals in special circumstances, such as “someone whose truck broke for a couple of months, someone who got sick, someone who sat it out, concerned about their health,” he said. 

At least half of those responding to this recent poll on Overdrive planned to apply for PPP funds.


Another loosening of requirements for forgiveness is the term for dispersing the funds, which formerly was eight weeks or 24 weeks, he said. “Now it’s anywhere in between.”


It’s difficult to make the numbers work smoothly on the short end, so ATBS recommends planning a term of 11 to 24 weeks for borrowers to pay themselves and, if any, employees.

A one-truck operator with his own authority, operating as a sole proprietor. Therefore, they should set up a personal account to receive set payments. This is given over the term that would cover the 60% target, advised Goodsell.


PPP1 borrowers were faced with a complicated form to have their loans forgiven, but a newer form is much shorter. Automatic forgiveness as it is keeps making the process simpler and simpler. Almost to the point of allowing for automatic forgiveness? How else do small fleets exist on their own? Investments and spreadings.

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