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Get Cash to Keep Your Business Running During Coronavirus

Picture of FranFund FranFund : Mar 18, 2020 12:29:23 PM

"Franchise" Entrepreneurship 2020 SBA Loans

Get Cash to Keep Your Business Running During Coronavirus

Update: See our new Coronavirus related information here.

When you launched your business, who would have guessed you would need to prepare for a global pandemic? Most business owners do not have a contingency budget anywhere close to what they need to mitigate this type of operational impact. As a result, a variety of financial backup plans emerged for businesses of all kinds.

When the SBA Offers Disaster Loan Funding

Under the direction of President Trump, the Small Business Administration (SBA) has announced the availability of loans to small businesses, nonprofit organizations, and other entities that have been affected by the coronavirus. The funding is to allow small business owners to pay:

Fixed debts
Payroll
Accounts payable
Other bills impacted by disaster

Unlike traditional SBA loans, which are guaranteed by the SBA, but funded by banks, the funds for the disaster assistance loans are coming directly from the SBA. The coronavirus-related loans will have a 3.75% interest rate for small businesses "without any credit available elsewhere" and 2.75% interest for nonprofits. Any business owner with the ability to obtain loan funds from other sources is not eligible for the SBA Disaster Relief.

Get Coronavirus Updates for Your Business Here

Would 2 million dollars be useful for your business? Well, the SBA will provide up to $2 million in potential working capital to assist with economic support and the temporary revenue loss your business may be experiencing as a result of the coronavirus outbreak. Repayment terms will be decided on a case-by-case basis, but repayment plans could be up to 30 years.

How to Know if You're Eligible for Disaster Loan Funding

When you are looking at the "eligible disaster areas" on the SBA site, keep in mind:

They're based on requests received from a state or territory's governor.
If your state is not currently listed, it could be soon.
Apply anyway, so you will be "in queue" when your state/territory is added.
Reach out to your governor and urge them to send a request if they haven't already.

If you do not qualify for the special SBA funding or need additional help, organizations like Facebook and Amazon are developing grants to help small businesses during this time.

More Funding Options for Your Business

At FranFund, have lenders who offer a combination of short-term loans, lines of credit, and credit card funding based on credit and income, and require minimal documentation. Let us know if you’d like to learn more about these options.

Do you have an existing business loan? If so, we strongly recommend asking your lender for a deferment period, waiving any payments for a period of time to help your business.

Small businesses are a vital part of our economy and need to keep their doors open. To help businesses stay the course and keep their employees safe during this time, the SBA has developed a set of resources outlining funding programs and general assistance.

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