I’ve been monitoring the news nonstop which may be a mistake because it’s really adding to my personal stress levels. It does allow me to keep up with anything that is coming out of the economic recovery effort that will help small businesses. Rumors are flying, there are a few proposals that sound promising but it’s a constantly changing story and there’s no way to know what version will get enacted or more importantly, funded.
I’m a member of the National Small Business Association and they are strongly advocating for major economic assistance for small businesses. They make some good arguments and have the stats to back them up. For example, there are 28 million small businesses in the US, 70% of which are owned and operated by a single person. In total, small businesses employ 57% of the private workforce. As a small business owner, we sometimes feel invisible but its abundantly clear that any economic recovery package that leaves us out is doomed from the start.
You do have
the option of taking advantage of the Small Business Administration’s long
term, low interest loans to business affected by covid-19. These are
the same type of loans that the SBA uses for weather disasters so the
process is already in place. I’m by no means an expert in loan applications,
but I’ve looked over the process and small businesses can apply for up to $2M
but that is probably limited to what losses you can show. The SBA is pretty
tight with the purse strings but considering that this is an evolving crises,
they may take that into account when they set the loan limits. I’m sure there
are some hoops to jump through, I know that these loans require registration
with FEMA and naturally they want a set of financial statements. They say that
once they receive a completed application, they try to arrive as a decision in
2-3 weeks and then once they receive signed loan documents, have your money to
you within a week. If you’re interested in more information here is the link: https://disasterloan.sba.gov/ela/
If you have any questions, do let
me know. I will do what I can to help wade through any of these government
documents. In the meantime, stay safe.