Small-Business Owners Feel Weight of Personal Debt Guarantees

  • 📰 WSJ
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

“It’s like trying to stand in quicksand.” Personal debt guarantees are bearing down on small-business owners during the pandemic.

The vise is tightening on owners of restaurants, fitness centers and other small U.S. businesses trying to hold on until the economy fully reopens. And unlike at most big companies, the burden is often deeply personal.

Townsend Wentz borrowed from his family to open his first Philadelphia fine-dining restaurant in 2014. The chef tapped the equity in his home, erased any semblance of a retirement account and diverted college funds for his daughter into his business. Roughly $1.5 million in personal investment now sits in the balance. The pandemic repeatedly closed his five locations for portions of the year.

On top of that, Mr. Wentz, 53 years old, has a personal guarantee on one location that makes him responsible for around $540,000 in rental payments over five years and an additional $175,000 for a liquor license. The guarantee weighs on Mr. Wentz as he juggles phone bills, tax obligations, rental payments and other expenses.

“It’s like trying to stand in quicksand,” he said. He hopes to have all of his restaurants reopened this month. Small-business owners taking on debt or signing a lease often end up providing a personal guarantee, in which they promise to be responsible for the payments if the business can’t pay.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

'If I fail, this would put my family in debt indefinitely.'- The thoughts of any hard working class poverty wage worker.

I feel it! Meow!

Japan discharges nuclear waste water

Don’t worry, fed is trying to inflate debt away....

Nice and subtle headline to ease us into the great reset.

Reasons Why Not To Invest&Visit in South Africa: 1. Racist BBBEE laws 2. Corruption 3. Crime 4. Unfriendly labour legislation 5. Expropriation without compensation 6. Failing infrastructure 7. No electricity 8 Illegal foreigners 9 City Name Changes(Port Elizabeth)

Declare bankruptcy. Very few are aware that the life savings in your 401K, IRA, and Roth IRA are shielded from creditors for amounts up to around $1.4 million.

😢😢😢😢😢😢😣😣😣😣😔😔😔😔

Well... FREE Advice... Never Let Your Debt Overshadow Your Asset 🆗👍👍🏿🗿🇺🇸🌍🌎🌏

Assista na íntegra ou de 16:36min, e saiba + da podridão revelada do submundo desse Brasil dos abutres. Igreja 'Maranata', do fundador da Presbiteriana e comendador da maldita luciferiana Maçonaria, formadora de corporações criminosas variadas:

It is simple, all debt finds a home somewhere. It is truly not rocket science.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

6 Things Marketers Must Know About Today’s Small Business OwnersFor marketers who want to reach small business owners in a meaningful way, you’ll need to meet these entrepreneurs where they’re at—and find smart ways to help them keep moving forward.
Source: Forbes - 🏆 394. / 53 Read more »

6 Things Marketers Must Know About Today’s Small Business OwnersFor marketers who want to reach small business owners in a meaningful way, you’ll need to meet these entrepreneurs where they’re at—and find smart ways to help them keep moving forward.
Source: Forbes - 🏆 394. / 53 Read more »

7 AAPI Designers On Fashion, Personal Style, & Launching A Small BusinessTo celebrate APAHM, we asked our favorite designers and entrepreneurs to drop some honest wisdom about starting their own business. Pretty Girl Summer! Let's play a fun game ladies... Which of these shoes represent your ultimate summer vibe?... Me : The 7th... Grown and Classy. What's yours? 👇
Source: NylonMag - 🏆 697. / 51 Read more »

Good Impressions: Empowering Small Business. Amplifying Diverse Voices.Introducing GoodImpressions, meredithcorp’s pro bono media and marketing consultation program. A select number of BIPOC- and/or LGBTQIA-owned small businesses will win up to $100,000 in marketing services! Apply here: supportsmallbusiness smallbusiness
Source: InStyle - 🏆 103. / 63 Read more »

The best small-business bank accounts and credit cardsThe 14 best small-business bank accounts and credit cards for entrepreneurs who care about high interest rates, rewards, and low fees thanks
Source: BusinessInsider - 🏆 729. / 51 Read more »