Businesses struggling during the Coronavirus pandemic are looking for new ways to help them through these trying times. Businesses wondering what is available to them can look for financial assistance and innovative ideas to adapt to the changing market. And even if you can't continue to make money - focus on your BRAND.
Types of Financial Assistance Available
The Paycheck Protection Program and Loan Forgiveness
The Coronavirus Aid, Relief and Economic Security Act (CARES) provides “emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.” The Small Business Interruption Loans under this act extends until December 31, 2020. S.J. Res. 3548, 116th Cong. § 1102.7 (2020). Under this act, loans can be forgiven if they are used for the specific purposes provided for in the act. These purposes include: payroll and paid sick or medical leave, employee salaries, mortgage payments, rent, utilities and any other debt obligations that incurred before March 1, 2020. S.J. Res. 3548 § 1102.7.
Entrepreneurial Development Program
Furthermore, under the CARES act this program may provide financial assistance “in the form of grants to resource partners to provide education, training, and advising to covered small business concerns.” S.J. Res. 3548 § 1103.Under this act a resource partner means small business development centers or a women’s business center. S.J. Res. 3548 § 1103.
Economic Injury Disaster Loan and Advance
This is an advance provided by the SBA. “This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue.” This advance will provide assistance of up to $10,000.
Additionally, private lenders may be able to help. On March 18,2020 JPMorgan Chase announced a $50 million global philanthropic commitment to help with the economic challenges caused by the COVID-19 pandemic.
What if the Financial Assistance isn’t enough?
Businesses still struggling after receiving financial aid may be wondering what they can do to keep their business afloat. Tips for businesses navigating this time include: cutting non-essential expenses, structuring business around the pandemic, and looking to others for ideas and advice.
As all businesses may know, business is not as usual during this pandemic. Therefore, cutting expenses is the first step. If your business is struggling, any expenses that are non-essential should be cut. It is smart to do anything that can be done to limit the amount of spending for your business. Limiting inventory spending, travel, and bonuses or overtime may be a place to start.
The next step would be to structure your business around the pandemic. It is important to adapt to the changing times. Many restaurants are offering take out services that were previously unavailable to stay afloat. Furthermore, stores are offering curbside pickup and online ordering to help limit the amount of people in their store and accommodate patrons who do not want to go inside their store. Thinking outside the box is crucial during this time.
Finally, it is important to find a support system. Finding other business owners who you can talk to about new ideas is a great way to discover new solutions to accommodate the new market. Other business owners and experts can be very useful because every business is different. It is important to reach out to others to bounce off ideas or find solutions tailored to your needs. Furthermore, experts like attorneys, accountants, tax professionals are a great resource for specific solutions to specific problems.
As an example, our law firm remains open during the COVID-19 pandemic. Using our virtual platform, our legal team remains able and willing to provide you with legal assistance. While not all businesses have this opportunity to remain open virtually, continue to think outside the box for ways to continue connecting with your clients or customers, and continue building your brand.
Stay safe! We're here for you.