The novel coronavirus struck every aspect of our lives. The virus has brought suffering to people in almost every nation across the globe. Our lives suffer greatly in many ways because of COVID-19. One of the most significant hits was observed in businesses, both big and small.
America is under lockdown, as people practice social distancing in the most distant parts of the country. This situation has greatly affected small local businesses economically. Apart from the great emotional loss that we are facing as a nation, some light must be shed on the economic mislaying.
Businesses are shut irrespective of what scale they work on. Every individual is suffering a significant financial loss because of the COVID-19. You must realize that after the virus is eradicated, you might have to get into overdrive to save yourself from a potential loss.
Your business is going to have an impact
You will still have loans, bills, and dues to pay after the virus is eradicated. Without a steady income, paying these loans will be a task to be reckoned with. You might just need to get a loan to pay your bills and get yourself and your business out of any financial blackholes.
You may be exempted from certain federal loans to the government for the next couple of months. However, this does not imply that you will be free from paying your dues. Your charges will incur an interest rate that you will need to pay in full after the COVID-19 horror subsides.
The government identifies these problems and is working hard to relieve you from this economic stress. If you have not heard about this before, you must pay close attention now. The government has introduced certain business loans to keep your business afloat in these tough times.
Government introduces business loans for relief
These loans are a great option for local businesses who are struggling to make ends meet in these times. The loans come with very low-interest rates and were solely introduced to help businessmen across the nation. You must realize that these loans are given by the state, so make sure you apply in the right place.
You may have a ton of doubts and inhibitions about relief loans as such. It is natural because most relief loans require a lot of paperwork. This paperwork needs to be accurate and must be turned in on time. However, with these special loans given by the state, you will be pleased to know that getting relief is not all that difficult.
You must hurry up to file for these business loans. There are many local and national businesses fighting to get the first spot in this long line. If you want your relief funds fast, you need to make a move today. Here is a comprehensive guide to availing these loans for your business.
What are the federal disaster relief loans?
The economy of the United States of America thrives on the success of small businesses. All businesses, big or small, need to make their contribution to the financial growth of the country itself.
Tough times like the COVID-19 outbreak severely affect the growth and development of these businesses. A global pandemic sure is not a frequent phenomenon, so we may not have provisions made for it. However, the government identifies these afflictions and does its part to ease these problems for their people.
The federal loans for businesses are a way the government provides its people with substantial relief in times of hardships. These loans can help your business stay afloat and keep running during lockdowns.
You may think that you are doing fine, and you do not need financial assistance immediately. However, you must think about the future now and plan. Prepare for the worst-case scenario, so you do not have to watch your business fall prey to the COVID-19 outbreak too.
Issues that Small Business Administration USA can help you solve
Here are some of the issues your business may face due to the coronavirus outbreak. All these problems can be solved with a little assistance from the Small Business Administration USA.
· Capital Access
One of the most important factors that affect your business during an economic crunch is the capital you have. You need a saved amount of money to pay for your rent, mortgages, business loans, and employee salaries. You cannot compromise on this amount, or the standard of your business is affected drastically.
With disaster relief loans provided to you by the government, you can dodge capital related issues with ease. The federal loans provided by the government are specially curated to provide relief during the COVID-19 pandemic. You can use this loan amount as your business capital until things get back to the way they were.
Your workforce is sure to be affected by this virus outbreak. A business is only as competent as its workers. So, you will need to make sure that you prioritize the safety of your employees before anything else. This might lead you to send them home and resume work functions from their respective homes.
While working from home is a great way to continue operations in a business, it is not as effective as traditional working. You will not be able to perform all the tasks that you would have if your workforce was performing in their optimum condition.
However, this does not mean you stop looking after your employees. Use your capital to pay them their salaries. You can make some cuts but don’t stop their incomes completely. Apart from this, if your budget allows, make sure you set aside some money for healthcare.
All this will be possible if you seek assistance from the SBA or the Small Business Administration and apply for a business relief loan.
· Facility Remediation Charges
You must look after your employees and their families. This is essential because you are responsible for the safety of your employees. You can provide them with a good healthcare system and leave no stones unturned to ensure their safety. However, all this comes at a cost. You will need a base capital to protect them from this global pandemic.
Apart from this, if you keep the office running, you will need to take extra precautions to maintain security. All surfaces of your office area must be cleaned frequently and disinfected thoroughly. This is the least you can do to keep the virus at bay. Now, make sure you provide your employees with all these remediations with the help of a relief loan from the federal and state governments.
· Insurance Coverage
Your business insurance is sure to fall prey to this pandemic. You must contact your insurance provider and stay updated on your policies. Make sure you are aware of the way your insurance pans out in the future.
· Changing Demands Of Your Clientele
A global pandemic may change a few things around your business. Your customers may find it difficult to reach out to you and avail of your services. You need to keep up with this change and try your level best to provide your customers with your services any way you can. You can always seek assistance from the SBA and find ways to extend your services to your customers. The distribution partners at SBA strive to help businesses reach out and conduct their duties in a safe and controlled environment.
Marketing during a pandemic is difficult and expensive. You will need to go the extra mile to make sure people still know about your brand and its services in the market. A good marketing strategy is hard to come by in such times, but if you rack your brains, you might end up with one. You will also need funds to back up this plan. A business relief loan from the government is your best bet in these times. You will be able to provide your customers with a good advertisement without risking the health of you and your business’ finances!
· Improvise a Plan
You can let a pandemic stop you from going out and physically conquering your goals. However, you cannot let this virus crush you mentally. Get those brain juices flowing and come up with plans for the future post-virus. Make sure you conduct regular online meetings with your associates and employees to work on ideas and collaborations. Use this time to construct plans for the future and looking for ways to fund them.
You might think you do not need a lot of funding from the government at this point. However, you cannot predict how the situation pans out in the next couple of months. Prepare for the worst and apply for federal relief loans today. With businesses going bankrupt so rapidly around the country, the government may find it difficult to provide relief to everyone instantly. Take all precautionary measures and contact SBA today.
Where can I get them from?
Good news for businesses across the country! The government recently signed off $376 billion for the relief of small businesses during the coronavirus outbreak. Under the CARES act, you can get relief funds from the state during this pandemic to keep your business running. Here are a few options that you must consider as your relief funds:
#1 The traditional method (Not recommended for this month)
If you feel iffy about the new methods, you can always get the traditional loans through the SBA.
The PPP or the pay-check protection plan is designed to secure your pay-check payments. This time around, freelancers are also included in this protect. This was not always the case before. If you have employees on payroll, you will need to submit the payroll slips later on. No credit check. If you are a freelancer, you will need to submit 1099-Misc. If you do, then this loan in forgiven. The loan is due in 2 years with 0.5% (Feds are considering to raise it to 1%) interest. Your bank an help you with the applications. Jp Morgan Chase takes couple of days to return a call after you will fill out form. Here is the link for Bank Of America
#3 EIDL Loan Advance
Under this, you can get up to $10,000 of relief funds for your business. This grant is great for businesses suffering from a temporary loss. If your capitals are only affected due to the COVID-19 outbreak, you can seek assistance from this loan for the time being. After this, you can pay it back once things get running again. It is also beneficial because of the low-interest rates businesses have to pay.
#4 SBA express bridge loans
Small businesses can get up to $25,000 under this scheme to save their businesses from bankruptcy.
#5 SBA Debt Relief
If you are under debt and now you have no means to pay for it, you can apply for debt relief. This debt relief program is great for small businesses as it relieves them from paying their bank loans for a certain period. After the economy resumes its natural pace, you can continue paying your loans the way you did.
How can I apply for a small business loan?
Disaster loans have a reputation for being hefty on the paperwork. You might have to sit tight and let the paperwork flood your tables and computer screens if you wish to access this relief fund. However, this is not the only issue people face when filing for loans. Filling the right form is also a task of great proportions—the internet in full of phony forms that are of no use to you. Filling them is a waste of time, and you might even end up giving out private information to lawless criminals online.
Submit the right forms
If you wish to apply for a disaster relief loan for a small business, then you need to fill in and submit the right forms. The official SBA website has all the forms that you will need. You can start your application today by visiting the disaster relief web page on their website. This can provide you with the correct application forms to help you avail of a business loan.
The SBA has options for home loans on account of the COVID-19 outbreak too. However, you must focus on the business funds first. You should realize that many small businesses are applying for this very loan. The government may have set aside a budget for all businesses, but processing payments will take time.
Apply on time
If you want your business to get loans from the state and federal government fast, then you must apply today. With innumerable applications to process, the loan amounts will take a lot of time to be processed. You still have a good chance of availing of these loans now. The CARES fund was announced on the 27th of March 2020. Not many businesses know about it yet, and your application could get processed instantly.
Be wise with your decisions
You must remember that this relief fund is not just for businesses on the brink of bankruptcy. All small businesses could use some assistance in one way or another. You must think ahead and predict your business’ future. The welfare of your company and your employees depends on the decisions you make today. So, if you think there is even the slightest chance that your business could face financial afflictions, you must apply for a loan.
The SBA website provides you with a comprehensive list of disasters that qualify for a relief loan. You can visit this link, https://www.sba.gov/page/disaster-loan-applications, and get a better view of the status of loan applications.
If you need further assistance, you can call their helpline numbers or email them personally. A business relief loan is a need of the hour for many small businesses in the United States of America.
Does my business qualify for a relief loan?
With every loan provided by the government, certain prerequisites come with it. Every applicant needs to be eligible to avail of the business loan in every case. If you are a small business struck by the economic stagnancy caused by the COVID-19, you must apply for a loan. There are ways to find out if you are eligible for a loan before you even apply.
The SBA’s official website provides you with all the information you will need before you apply for your disaster relief loan. The eligibility criteria vary from one situation to another. If you go around looking on the internet, you might not get the correct information.
The SBA website has an eligibility calculator which works great for applicants. This calculator can tell you if your business could avail of business relief funds provided by the government. It is wise not to trust other websites online, get your information on the official SBA site to avoid any mishaps.
Seek the right help
One of the greatest assets of this financial assistance is low-interest rates. The government is providing help to all the citizens of the country for the sole purpose of getting them back on their feet. The novel COVID-19 has brought about death and desolation across the globe. What matters is how a country fights back economically, too—these financial provisions which help small business owners in the long run.
If you run a business, you are afflicted by the corona outbreak already. Make sure you keep the situation under control and get all the help you will need from the government today. Even if things are not that bad now, they might get worse in the future. Getting a government loan is a smart idea for every business right now. The perks and the conditions on these loans offered by the state make it very easy to pay them back. Apply today, and do your best to protect your business!