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