Right now, it is hard to look to the future of a world after COVID-19 has passed. But businesses need to continue, and the impact of the coronavirus will be felt by many. You will still need to make money, and people will still need services. So how are businesses across the United States looking to survive COVID?
Over the next few days, we will look at different ways that businesses can look to survive in a Coronavirus-ridden world. At a national, international, state and local level; there is a program for everyone. Today we will look atÂ a program by the SBA to help small businesses get loans.
What we are living in is officially a state of emergency. As a result, the SBA is offering an economic injury disaster loan program in 30 states and in DC. This is, without a doubt, huge news to anyone feeling the pain right now in the country. From the SBA site on the matter, they write:
The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA's Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
By working with states and providing a low-interest cash stream, there is a lot that the SBA can offer to businesses of all kinds in the US that Coronavirus is getting in the way of.
Go online to the SBA website in order to learn more. You'll need to prove that you are in an area affected by the Coronavirus in the US, and that you are facing problems as a result of the virus. This is being treated like any disaster that affects the country, and the loans should apply to your business in a similar way.
At time of writing, the site is having traffic problems and is quite buggy. But it might soon be easier to learn more.
With so many businesses being forced to close their doors during the Coronavirus outbreak, it is understandable that people are a bit worried about their financial survival. Social isolation is a great protocol for human society, but it is not helpful for business. If loans of this nature become the norm by the SBA and other organizations, it just might help save small businesses that would otherwise no longer be sustainable.
SBA's offer is amazing, and it is certainly going to help many businesses. But that isn't the only kind of funding to look for right now.
If you're struggling to raise funds during this time in American history, look to a few other sources for your income. We have spoken often about the Small Business Lending Ecosystem, and that is a great place to start. Whether you're looking for fundraising programs or you're just preparing for the inevitable need to start to raise funds, we've discussed it in detail.
Traditional loans might not be super accessible during this time. For one, banks aren't operating with full staffs. They are considered essential businesses, but that doesn't mean that they' can do' everything right now. It is a safe option but depending on how COVID treats the United States it might not be feasible to look at traditional banking. It also is hard to predict what will happen to loan approval numbers with the financial market in such disarray.
Right now, it might be the time to investigate alternative lenders. For one, a number of these processes can be done digitally, meaning less human interaction. Plus, alternative lenders can be stronger when you're okay with a higher rate of return. Really, there is a lot that is going on that could change interest levels and loan approval numbers. The market being as upside down as it is will change a lot. Stay informed before making any hasty decisions.
The US and the international community have all changed because of Coronavirus. But that doesn't mean the end of the world by any means. Instead, it is the perfect time to look at how you can help your business in the future. As the world has changed so drastically, it can be a good time to consider how you can change your business. We aren't letting us be brought down by Coronavirus. Don't let it bring you down either.
Brian Cairns, CEO of Prostrategix Consulting. Over 25 years of business experience as a corporate executive, entrepreneur, and small business owner. For more information, please visit my LinkedIn profile