The coronavirus pandemic has wreaked havoc worldwide. This led many states across the U.S. to implement stay-at-home orders to help prevent the spread of the virus.
While this is necessary for the health and safety of citizens, it’s caused financial distress for many business owners. According to a Goldman Sachs survey, over half of all small business owners say they won’t be able to continue operating if the shutdown lasts longer than three months. Some businesses will not be able to make it to the end of April without help now.
3 Resources for Small Business During COVID-19
It’s disheartening to see so many small business owners struggling, and there is still a lot of uncertainty about what will happen in the coming months. But if you find yourself in this situation, there are resources that can help you get by.
Here are three resources that can help your small business survive during the coronavirus pandemic:
1. SBA loan programs
If you haven’t already, you should check the SBA’s list of resources for small businesses. Here are a few of the programs outlined:
● Disaster relief loan advances: Small businesses across the U.S. are eligible to apply for an SBA disaster relief loan advance of $10,000. The funds will be available within three days of approval, and the loan advance doesn’t have to be repaid.
● The Paycheck Protection Program: This program authorized up to $349 billion for job retention and other business expenses. Eligible businesses could qualify for a loan of up to $10 million. The loan amount is determined by eight weeks of the business’s average payroll expenses, as well as an additional 25%.
Payments on these loans will be deferred for up to six months. On top of that, if you’re able to maintain your staff, the SBA will forgive a portion of the loan that’s used to cover payroll.
● Bridge loans: If your business has an existing relationship with the SBA, you can access an additional $25,000 with much less paperwork. These loans can help small businesses get through a temporary setback.
2. Deferred tax payments
COVID-19 forced the IRS to delay tax payments for individuals and small business owners. If you owe less than $1 million in taxes, you can delay your payment until July 15, 2020.
This can help business owners free up some of their cash flow and focus on the more pressing concerns. You should also be talking to your CPA about any tax credits your business can take advantage of.
3. Discounted business loans
Increasingly, lenders are offering discounted business loans to struggling small businesses. If you have any existing business loan, you should check with your lender to see what options they’re offering small businesses. For instance, Citi is waiving monthly service fees and early CD withdrawals.
The most important thing you can do right now is to think proactively. Stay updated on the news regarding COVID-19, and spend time every day thinking about opportunities and ways you can move your business forward.
To your success!
Written by Brian Johnson