The San Diego City Council has enacted a temporary eviction moratorium that will bar property owners and/or managers from kicking out tenants who can show proof that they are facing financial difficulties because of the Covid-19 crisis.
The local emergency law though is temporary and limited in nature, as it will be effective until May 31, 2020 only and subject to certain conditions.
Limitations of the Eviction Moratorium Law Enacted by the San Diego City Council
The eviction moratorium can only protect those that can demonstrate or show proof that their income has been greatly reduced due to lack of business or employment engagements. Tenants suffering from financial stress caused by substantial medical expenses can also seek protection against eviction by presenting proofs of medical bills that they have to incur as a result of the health crisis.
The conditions suggest that tenants who are in good health and receiving compensation under a work-at-home arrangement, are expected to pay rent as they fall due even during the ongoing coronavirus restrictions. Otherwise, their landlord can enforce eviction order and force them to shelter-in-place in another location.
Business owners who continue to trade or render services through the Internet of things can also be expected to pay rent for their brick-and-mortar storefronts. Not unless they can show proof that their online business operation does not yield income that can sufficiently replace the substantial loss of sales suffered from the absence of storefront operations.
Such conditions required from tenants and lessors of commercial spaces aim to strike a balance in protecting the interest of both tenants and landlords. After all landlords and rental property owners are also entitled to seek protection of their business income to prevent unscrupulous individuals from taking advantage of the eviction moratorium.
State Government’s Lockdown and Shelter-in-Place Orders Do not Automatically Include the Eviction Moratorium
When California Governor Gavin Newsom placed the entire population of Calfirnians under lockdown and shelter-in-place restrictions, he also gave authorization to local governments to temporarily suspend eviction actions against residents and business owners. However, Gov. Newsom made it clear that the suspension of eviction laws can be enforced only if the local council had enacted an eviction moratorium law similar to the law enacted by the San Diego City Council.
This denotes that a San Diego landlord can proceed and pursue eviction actions against non-paying tenants in Bay Area communities that have no emergency moratorium laws in place. According to Governor Newsom, city or community councils must pass their own temporary eviction moratorium in order to protect their residents from unjust eviction orders during their Covid-19 trials.
SD Councilman Chris Ward Sees the Need to Come-Up with Long Term Solutions
SD Councilman Chris Ward said that
”The emergency eviction moratorium is necessary but they do not go far enough to provide tenants with long term solutions
Missed or delayed payments of rents will only add to the financial burdens faced by families and business operators even after the Covid-19 crisis ends. Although the San Diego City Council approved the financial assistance package recommended by San Diego Mayor Kevin Faulconer, he still sees the need to develop a strategy aimed at working with banks and lenders.
Time is one of the major and most valuable resource of any business owner. You as a business owner may need a certain loan or financing to put your business onto the next level, but you might have insufficient time and the proficiency to properly and thoroughly research and make enquiries for a loan. You could end up struggling to meet the criteria for reasonable rates or get caught in cumbersome and distressing terms when you could’ve gotten better arrangement elsewhere.
Trustworthy and highly regarded loan brokers can simplify and ease your search for a suitable loan as well as save you lots of time and cash.
How Do Business Loan Brokers Work?
You may have sought the services of a broker to help you find your forever home or lend a hand with your investments. Business loan brokers function similarly. They’re experts or professionals who help out businesses look for possible financing.In doing so, they take your loan application to several potential lenders and report back to you with potential business loan offers. As soon as you have decided on a loan, brokers frequently manage repayment. During the entire process, your broker could also assists and provide you with answers to queries with regards to business financing.
How Do Brokers Charge Their Fee?
Usually, loan brokers charge a percentage of your overall loan amount once it is financed. With an online lender, this could reach as high as seven percent to seventeen percent or as little as one percent to three percent with credit unions or banks. Frequently, the fee of brokers for looking for a small business loan are lower. Several brokers charge this “finder’s fee” by putting a higher rate of interest. Since they also usually manage the repayment process, when you give a repayment, they first collect their percentage from the interest then they pay the remaining to the lender. Other brokers ask you to pay them directly.
Is Working with a Loan Broker Beneficial?
It could be advantageous to work with a broker, just ensure that you hire a legitimate, qualified and honest broker. Below are three notable benefits:
It could save you and your business valuable effort and time searching as well as applying for a manifold of business loans. Because brokers are more knowledgeable and proficient at such, they can easily determine your options and where to get them.
With an experienced loan broker, they would know if the potential loan is a good enough or is very a reasonable deal. They would also know if it is a rip-off deal.
A middleman could be very helpful at times. You could ask your broker questions or be clarified with unfamiliar concepts regarding business financing concepts.
The latest Bank of America (BofA) Global Research indicated that global economy is heading for the worst.
The BofA report stated recession as “headwinds,” which in business means an economic circumstance affected by certain events or conditions that hamper economic growth. The analysis is that the coronavirus outbreak and several other factors are building up toward a global recession.
Recession is defined as a temporary economic situation in which industrial and trade activities continuously decline for more than a few months, to yield a less than favorable Gross Domestic Product (GDP) growth in two (2) successive quarters. As negative factors continue to affect global economic activities continue, the BofA report projects that the global GDP for the year 2020 is likely to slow at 2.8%; a reading that is similar to the sub-3% growth seen during the 2009 recession.
Factors Cited by BofA Study as Drivers of Potential Economic Recession
The coronavirus or Covid-19 outbreak is cited as the main driver of the current economic downturn. The global research said that several other factors, such as political conflicts and uncertainties, as well as trade war and weaknesses of some countries in handling cases of Covid-19 infections, are compounding the resulting impact caused by the coronavirus problem.
Ever since the Covid-19 virus broke out in China, disruptions in the country’s economic activities ensued. Touted as the “world’s factory,” the inability of China to produce goods that it normally supplied to manufacturers and traders across the globe, created a domino effect.
Not a few U.S. companies rely heavily on key goods supplied by Chinese manufacturers. The shortage in production has disrupted the supply chain, causing investors to panic and to right away sell off their stocks. The UK’s Financial Times Stock Exchange (FTSE) is already in the “correction territory,” which means the financial market are seeing a decline of 10% or higher.
Last week, the U.S. financial markets suffered a week-long blow from the massive sell-offs that transpired. If the trend continues in the coming week ahead, the U.S. financial markets will also go into correction territory.
The bad news is that the current main driver of an economic recession cannot be expected to go away soon. The Director of the National Institute of Allergy and Infectious Diseases (NIAId), Anthony Fauci said that
”Covid-19 is a brand new virus, and we do not know or can count on the possibility, if it will die out, or even diminish once the weather gets warm.”
Although Director Fauci announced earlier that human testing for a potential vaccine for the novel coronavirus will go underway in six weeks at the least if there are no hitches, it is only the first phase of a series of trials that will not be applicable any time soon.
Uncertainties posed by the forthcoming U.S. presidential elections, unresolved trade wars, uncompromising trade deal negotiations and forces of nature that bring major disruptions, are only some of the factors that create an outlook that points toward an imminent global economic recession.
Although some industries like tourism, hospitality services and rental businesses do not rely on products and raw materials supplied by China, they have likewise, been affected by travel restrictions and slow consumer traffic. That is why businesses are urged to take proactive actions, since a recession will likely result to business losses that would call for mass layoffs.
To ordinary folks, loss of jobs means inability to meet their day to day cost of living, including house rentals. This early, it would be wise for owners of rental properties to engage the services of property management companies, since they have the expertise in mitigating the impact of a looming, global economic recession.
Businesses of all industries in the economy are impacted by the movement in stock market for a number of ways. In the US, there are around 5000 publicly traded stocks that could be divided into 11 global industry classifications or GICS. With the day to day movements in the market, each action could lead to a different result, which may either be a positive or negative effect on the business.
The Economy and Stock Market
The stock market is described as the market to which equity shares of public businesses are being sold and bought. It is the stock market that is used in measuring the aggregated value of the publicly-traded firms. Comprehensively, this could be represented by Wilshire 5000. But to be in generally, many investors as well as analysts are focused more on S&P 500. Both of the said indexes play an integral tool to gauge the health of overall economy. Sometimes though, stocks might be misleading.
Most of the time, the economic performance and stock market are aligned. Having said that, whenever the stock market performs well, it’s normally brought by the growing economy. Then again, economic growth is measured in various methods but among the predominant methods is through GDP or Gross Domestic Product.
Whenever the GDP grows, individual businesses produce more and oftentimes, expanding. With expanding business activity, it typically boosts leads and valuations to the gains of stock market.
How Consumer Spending and Stock Market is Connected?
In most cases, consumers are spending more time throughout bull markets because they’re benefiting more from strong economy. At the same time, they feel richer every time their portfolio increases in value. During bear markets though, the economy is spending recedes and thus, not in a good position. Simultaneous fall in the stock value can create the fear for loss of purchasing power and wealth.
Rising stock market on the other hand is aligned with growing economy as mentioned. This is also an indication of increased confidence among investors. With investor confidence in stocks, it results to heightened buying activity that helps in pushing the prices higher. As the stocks are rising, those who have invested in equity market is likely to gain wealth.
With the increase in wealth, it leads to the increase of consumer spending since consumers tend to buy avail more services and buy more goods. And when such thing happens, businesses that are selling these goods and services opt to sell more and produce more. Thus, reaping all the benefits in form of increased ROI.
Now, you have two options in this matter, it is to borrow against settlement and invest in your own business or learn and understand how the stock market works and invest on it.
Any business with a corporate culture that suits you includes flexible hours, a training budget, and other incentives. All these play a role in choosing the best employer for your services. In any case, the wage remains decisive. We don’t have to bother about that. Everyone has to pay their bills and often even maintain a family.
It is, therefore, no wonder that wages are a topic that lives in the workplace. Certainly when colleagues who do the same job suspect each other that they will be paid less than the other. This influences the motivation and therefore the performance of your staff.
The benefits and risks of salary transparency
On the other hand, they might do their best just a little more when they know that they are being paid correctly, with the aim of receiving more compensation when they take big steps. In contrast, when employees are underpaid or not receiving their wages on time, this results in employee demotivation especially when they will have to seek other sources of cash (get a quick loan here) to bridge the gap in wages.
Not everyone is equally transparent, but some companies consciously choose to give their employees insight into the wages of their colleagues. Some employers do that partially, others fully. This naturally has disadvantages, but also benefits.
More freedom, but stiff recruitment. Many employees feel that they and their employers are the only ones who know how much appears on the bill each month.
Employees will feel more at ease because they feel their privacy is protected.
You pay each employee tailor-made, based on their skills, experience, and performance.
Employees will doubt whether they will earn enough and as a result – consciously or not – will do their best less.
Wrong information about wages will circulate. If there are very large differences and someone comes to know this in one way or another, this can lead to major internal problems.
Wage negotiation is more difficult when the candidate does not know what normal wages are.
Bear in mind that sensitive information often becomes known in one way or another. Are there major differences regarding wages? Then that can cause problems at such a moment. The question then is whether the problem lies with the unequal wages or the lack of transparency about it.
You can also choose to make wages partially transparent. We are then talking about wage scales instead of specific amounts.
Are there colleagues who actually perform better than their teammates but currently earn the same? Then you can give them some increase without much ado.
This also applies when you hire someone. You have more resources to convince a candidate with something extra.
Some candidates will immediately aim for the highest levels of the wage scale during the wage negotiations.
People can still suspect that their colleagues with the same position earns more and is therefore not 100% committed.
It is not common, but there are companies that give employees the opportunity to know exactly what their colleagues deserve. Sometimes the information even spreads outside the company. The disadvantages are easy to guess, but there are also interesting benefits associated with full pay transparency:
No wrong information or gossip in the teams.
You do not create situations where the wages of people with the same duties and responsibilities differ greatly.
Knowing what managers deserve can motivate employees at a lower level to do their bit.
Much easier wage negotiations.
There will be situations where someone who has been with the company for a long time and has a lot of experience with the way things work deserves the same as someone who is just starting out, which will not always be appreciated.
Someone who works harder or has more developed skills may earn better than someone who is on the same pay scale and does no more than is expected from him or her. You must adjust here if necessary. (calling on the less performing colleague or rewarding the hard-working employee)
Full transparency can certainly be considered because, since they will not be underpaid, they will be better able to concentrate on their duties. And knowing what managers deserve, they have a goal to pursue. You may encounter problems if there are too large differences between the performances of team members who earn the same.
The coronavirus shocks the stock market and paralyzes the economy. Insolvency and restructuring specialist Lucas Flöther has been dealing with crises for two decades. The lawyer considers the Corona crisis to be a serious burden on the economy, which has been unprecedented in recent economic history. He expects numerous bankruptcies.
The World Is On Standstill Due To Coronavirus Spread
Companies that have kept themselves afloat in the past few years without a resilient business model and especially with the help of cheap debt are, particularly at risk. Many start-ups are on the brink. Even companies with a lot of equity are by no means secured.
Just last week, good news have been fuming up the marijuana industry. To start with is the legislation of medical cannabis bills are passed in advance in Alabama and Kentucky. Meanwhile, in New Hampshire House, the bill to legalize the cultivation of cannabis for adults is already cleared. Moreover, the approval of the legislation that restrict non-residents from enrolling in the program related to medical cannabis is sending to the state government under Gov. Michelle Lujan Grisham this week.
New Passed Bills for Marijuana Legalization
Here are the other states that already approved the legislation and legalization of marijuana. Basic ideas of finance should also be considered by these states.
1. New Mexico
S.B. 139 is a legislation that would restrict non-residents of the states to enrol in the state’s medical cannabis program.
This has been approved by the Senate of New Mexico. Most of the bill followers are hoping for the reversal of the bill. They wish to have a change in the said state law allowing qualified non-residents to acquire ID cards for medical cannabis within the state. The S.B. 139 has been approved this week and sending its legislation to the governor of the state.
The very first meeting of the year by the Iowa Medical Cannabidiol Board was held. It focuses on the rejection to qualify the conditions of ADHD and panic disorder under the state’s medical cannabis program. In the said meeting, they also recommends to put restrictions on the level of purchasable THC.The current law of the state approved a 3% THC level under medical cannabis use. Iowa Board suggested for a change allowing patient to acquire 4.5 grams of THC within a period of 90 days.
New legislation for the legalization of adult-use cannabis within the state has been introduced by Rep. Jake Wheatley. The House Bill 2050 is planning to establish a licensing program for the growers of cannabis including the processors and even the dispensaries. House Bill 2050 has a goal to reduce the initial application and the fees for its licensing which would make the cannabis market more accessible for businesses.
4. New Hampshire
A new bill was approved by the House of Representatives with a vote of 236 over 112. This bill is intended to legalize the possession and cultivation of cannabis in limitation. Moreover, this would be applicable for adults 21 years old and above. The H.B. 1648 is similar to that of Vermont’s legalization law and is now sending for consideration under the Senate.
The House Bill of Washingtonaims to resolve the racial issue within the state’s marijuana industry.
The central banks are pumping massive amounts of money into the financial markets. The shares continue to slide.
The US mortgage crisis is now drastically impacting banks and financial markets. For many observers, a “real estate bubble” is bursting in the USA, caused by cheap mortgage loans with houses that are becoming increasingly expensive. Since mortgage rates have turned and numerous US homeowners who no longer have credit ratings are no longer paying their installments, bank loans have become lazy. The Mittelstandsbank IKB was the first German institute to get into the “subprime” swirl.
Crisis On Wall Street: The Week That Shook The World
Investors have lost confidence in the stock market and are fleeing fixed-income securities. The financial crisis, triggered by the difficulties in the United States with mortgages to customers with low credit ratings, has reached a new high. At first, Düsseldorf’s IKB was almost bankrupt with ailing subprime loans. Now the banks suspect each other of previously unknown risks. Large banks such as WestLB and SachsenLB are also suspected of this. The industry distrusts. The bottleneck on the money market is a vote of no confidence that the institutions issue to each other.