Sometimes, it is impossible to avoid a business crisis, such as the damage incurred as a result of COVID-19. If your business is working to survive the fallout from this recent pandemic, you will need to take proactive steps to accomplish this. These steps can help both business owners and landlords during a challenging time.
Economic Injury Disaster Loans
At this time, it’s vital to know what resources are available to help with a business crisis. The Small Business Administration (SBA) is currently assisting numerous businesses with loans and grants. The Economic Injury Disaster Loan (EIDL) program is one example. Small businesses, as well as private, non-profit organizations, can pay for some of their necessary expenses when they secure one of these loans. The SBA may cover up to $2 million per business or organization.
Paycheck Protection Program
Another option is to apply to the Paycheck Protection Program (PPP). This loan may not be higher than 2.5 times the average payroll amount at your business. The payroll costs that fall under this umbrella may include wages, commissions, and salaries, as well as payments for things like sick leave, parental leave, and vacations. The SBA will forgive this loan if the money is used for payroll, utilities, mortgage interest, or rent. Also, all employees must be kept on the payroll for at least eight weeks for the loan to be forgiven.
Exploring Other Resources
Because so many entrepreneurs and non-profits are currently experiencing a business crisis, government resources are being pushed to the limit. During the COVID-19 catastrophe, the first installment of funds designated to the PPP was quickly depleted. The second round will likely go fast, as well.
Fortunately, there are plenty of financing options outside of government agencies. The Capital Rams offer a variety of commercial financing solutions. Contact us today for assistance in overcoming your business crisis.