It was a couple or more years ago by now, I’m quite sure.  A caller asked a question and basically phrased it as, “Hey Dave, my banker said we are able to get a PPP loan at 1%.  I know you say to never borrow money, but what are your thoughts about this?”  The caller was presumably a business owner who qualified for the relief.  For those reading this, a ‘PPP’ loan was part of the Paycheck Protection Program and it would completely forgive the loan as long as you met the conditions of the loan as outlined here.  Dave’s response was something to the effect that you’re a slave to the lender, what has the government ever done right–look at government housing, etc., etc.  I bet that guy is kicking himself.

Many businesses (such as ours) didn’t need the money, but hey, at 1% there’s not much to lose.  Dave says that 1% cash back on a credit card is a ‘biscuit’ but in the same breath says not to trust the government when they promise to shower free money on businesses in a potential crisis.  I’m not mad that Dave chose to not use it himself (although I presume with his large payroll he would have benefited to the tune of millions, so good on him for standing his ground, especially at that cost)–I’m mad that he told all of us poor saps not to do it!  Luckily, I’m in a partnership and got outvoted so we applied for the money per our banker’s suggestion.  It netted us well over six figures–TWICE!!  They worked with our controller and it was a super simple process.

So in short, I really like what Dave teaches, but he’s gotta just stop falling on his sword every time.  Such a world exists where people actually can pay off their credit card in full every month and get their stupid points.  I’m sure his credit union has some type of rewards program but he can’t dare admit it on air.  Our company runs around a 150k spend every month and it yields several $500 Home Depot and Walmart gift card every quarter that are split between our C level staff.  If I were in charge at his company, I’d issue a card that was a Visa/MC but worked like Amex back in the old days where you HAD to pay in full each month.  Don’t give people the option to revolve.  And I’d develop my own points program that my cardmembers would be able to leverage.  Despite his claims that ‘debit cards offer the same protection as credit cards’ is simply not true, either.  My ‘daily driver’ Amex has everything from manufacturer’s extended warranty protection, theft coverage (as in someone steals your wife’s Tiffany bracelet and they will reimburse you as the purchase was made with that card), rental car collision damage protection, and a ton more. My credit score is in the upper 800’s.  I can get a mortgage wherever I want–they don’t pick me–I pick them; big difference.

I love everything else Dave teaches and he’s a guy I’d love to go to supper and have a drink with.  Everything else he teaches I am on board with.  Those just two things that in my opinion he got wrong.  But I think about this often enough to have hired someone to build this website so I had a little more clout than a Twitter comment. 🙂