Monthly news & updates
March 2020
Featured Article
Message from AmPac President Regarding Coronavirus
SBA Offers Low-Interest Economic Injury Disaster Loans
Loans Provide Up to $2 Million in Assistance
Looking for Good Out of COVID-19
Hilda Kennedy Shares Personal Reflections of Positivity During Difficult Times
Current Interest Rates

10 year loan....... 2.84%
20 year loan....... 2.80%
20 year refi......... 2.81%
25 year loan....... 2.88%



Client Testimonial

"...Hilda, Jennifer and Jaime were my contacts at AmPac and I cannot express my gratitude to them during the time that we were financing our commercial property loan. The whole process was made so much easier in just working with this exemplary team. I would highly recommend AmPac to all of my family members and friends. Thank you all for making this process so much easier."

Meline Melconian, DA Auto
Message From AmPac Regarding Coronavirus

As our world reacts to the spread of Coronavirus (COVID-19), we want to assure you, our clients, banking partners and business community, that AmPac Business Capital cares. We will get through this with you and we are confident that the resilience and innovation of the entrepreneur will shine and our state, our nation and our world will be stronger. Our team is praying for wisdom to serve you with the highest level of responsiveness at this time.

We are working with the U.S. Small Business Administration (SBA) and our Community Development Financial Institution (CDFI) partners to make sure we can address your finance needs given how this pandemic is affecting small businesses.

Please note how AmPac can serve its existing clients and the small business community:

  • For SBA 504 loan recipients, CDCs are able to offer the SBA deferment program to defer payments for up to six monthly payments or 20% of the original loan amount, whichever is less. While we will have to document how your business is being impacted by COVID-19, our goal is to try and expedite the process to take one item off of your list of concerns at this very sensitive time.
  • AmPac's micro loan program is available, for up to $50,000. Given limited resources, these funds will be made available to existing clients first.
  • The SBA 504 debt refinance program is a tool available to businesses to reduce their monthly fixed costs. If a business has a non-government backed real estate, equipment or seller carry loan for a fixed asset, the 504 debt refinance program can refinance the debt, pull cash out for business expenses and provide fixed, long term interest rates. The debt has to be at least two years old and the borrower will have to provide one year of payment transcripts and be current on payments.

Please review other loan options mentioned in this newsletter. Call our office at (909) 915-1706 if you need assistance or have questions.

We look forward to serving you!

Hilda Kennedy
Founder/President
SBA Offers Low-Interest Economic Injury Disaster Loans
The U.S. Small Business Administration is offering designated states (California is a designated state) and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.

To download AmPac's Cheat Sheet with quick information regarding SBA disaster loans, CLICK HERE ! All of these resources are also summarized on the AmPac website .
Looking for Good Out of COVID-19
Personal Reflections from Hilda Kennedy

With the billions of social media posts, the news bulletins and countless conversations of panic, I decided I would look for the good:

  • My young adult children are home, and we can turn off devices and play games like they did when they were children. I am planning a family room picnic--either ordering from a local restaurant to help a small business or cooking a healthy meal together. I have asked my son to plan our family workout schedule both in-house circuits and outside on the walking trail.
  • Excited to see the innovation of entrepreneurs and their resilience. These are the people that we serve--the backbone of our communities and our country---the small businesses. I loved the article I read where in Rock Stream, NY, the local winery began to make hand sanitizer from wine. Using his chemistry background, he used ninety percent ethyl alcohol, and then mixed it with aloe and tea tree oil.
  • Because the local gyms are closed, I am seeing neighbors I have not seen in years, outside walking and couples walking together. We may have to social distance, but we can still be social with a wave, or blowing a kiss across the walking trail or a wide smile that says, "I am so happy to see you." Personal trainers have a great opportunity for one-on-one or one-on-five outdoor training sessions.
  • Since we are saving on time to drive, my CEO group will have some Zoom meetings to share our best practices and to encourage each other through these unusual times.
  • Neighbors are helping neighbors. My friend shared that her neighbors came by to see if she had enough water and food because her husband is out of town. A deacon at my church called to check on me before going home after being out checking on the sick and elderly to make sure they had all of the groceries they needed.
  • And let me not forget the incredible commitment and passion that comes out of our employees and the support we have for one another. I got a late night text from one of our employees that brought utter joy to my heart. The employee wrote, "Hi Hilda, sorry for the late text. I know we are in unchartered waters and you must be so overwhelmed with thoughts and worries about your family and your business...If for a second you're even doubting yourself, know your team supports all of your decisions. Thank you for being you."

A pandemic brings tough news and thoughts of fear and panic, but I encourage all of us to journal the good and be a contributor to positivity. I treasure the biblical truth recorded in Romans 8:28 at times like these.
Family-Owned, Woman-Led Automotive Business Obtains SBA 504 Loan to Buy Out Partner
Loan Details

Loan Type: SBA 504

Loan Amount: $1,000,000

Industry: Automotive

Location: Huntington Park, CA
In the male-dominated automotive industry, a woman business owner secured an SBA 504 loan to buy out a partner.

This deal had the following unique  Challenges/Opportunities :

  • Bankruptcy of less than ten years ago
  • Profitable business over all years reported
  • Projections required because of purchase price
  • Seller carry note
  • Underground pit was filled during the process no special purpose
  • Past Phase II issue that was cleared

Results
  • Approved loan
  • Legacy planning for the family
  • Stabilized monthly mortgage payments
Tax Filing Deadline Extended
The IRS is extending the federal income tax filing deadline to July 15 as part of a growing effort to stem the financial pain from the coronavirus pandemic, Treasury Secretary Steven Mnuchin announced today. The move gives Americans three months more than they normally would have to file their income tax returns for the 2019 tax year, without incurring interest or penalties. Previously, the Treasury Secretary had pushed the tax payment requirement to July 15 with no penalties or interest. Now the tax filing requirement has also been pushed to July 15 as well with no penalties and interest.
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