COVID-19 Resources for Small Businesses
- October 8, 2020
- Written by : REIL Capital
In the midst of a pandemic, businesses are doing their best to stay profitable, and for some, to stay open. Many have been hit with extreme safety measures and mandatory closures. As a small business dealing with these limitations. How each maintains a customer base, pay employees, and find ways to grow?
In a country with endless possibilities. Especially in regards to small business ownership and entrepreneurs. Companies are looking left and right for advice, guidance, resources. Others are in search of loans, paycheck programs, and more.
Weâ€™ve rounded up our recommended list of resources and loans to support companies during this time, starting with Federal and State assets and webinars, and ending with the best loan options.
Federal Funding Programs
Along with several options under the Small Business Administration, the CARES Act has established new alternatives to address the COVID-19 outbreak.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress, is an over $2 trillion economic relief package for businesses in need and has been incredibly beneficial since itâ€™s created in March of 2020 providing fast and direct economic assistance for American workers.
Following are the Federal funding programs offered:
- Economic Injury Disaster Loans (EIDL) offer a 3.75% interest rate, a 30-year maturity, and is one of the better choices for small businesses currently experiencing a temporary loss of revenue.
- Small Business Administration Express Bridge Loans enables those who have a business relationship with an SBA Express Lender to receive up to $25,000. (Hint: thatâ€™s usâ€¦ REIL Capital)
- Small Business Administration Debt Relief is allowing companies to financially pardon as a result of the pandemics major impact. In fact, as stated on Georgia.org, the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.
Now letâ€™s talk resources from the State.
While the state does provide options, such as streamlined processing and flexibility on deadlines. For industries like trading. The State is more of your go-to information source as a small business needing assistance or guidance throughout the COVID-19 outbreak.
The Georgia Department of Labor, for example, focuses on jobs and offers information regarding unemployment claims.
The Georgia Department of Community Affairs focuses on the owners of those jobs and offers a new website to promote ways to connect to high-speed Internet throughout the state.
Just with these two departments alone, businesses are building back stronger than ever.
In addition to these departments, more information and guidance from the State has been provided through UGA. Check out their â€œResponse and Recoveryâ€ page on UGAâ€™s website where they break down resources by topics: finance, leadership/HR, operations, marketing, and planning.
It is extremely important to stay updated and in-the-know with all that may potentially impact your business. The best way to do this is through attending webinars, whether in-person or virtually.
Between funding from the CARES Act and resources from the UGA Small Business Development Center (SBDC). The two have created webinars to offer ongoing, current education and information at no additional cost during 2020.
To check out past webinars or the upcoming schedule, visit here.
Alternate Loan Options
Depending on what you and your business qualify for, you can apply for several alternate options for funding.
Some of the most common options are:
- Paycheck Protection Program is a lending programthat must be administered through local and regional banks and requires a business to certify that the loan will be used to retain workers, maintain payroll, make mortgage or lease payments, and pay utilities.
- A Business Line of Credit is actually a funding option that we offer as well that allows a business to borrow up to a certain amount, pay interest on only the amount borrowed, and then repeat the process. This is a fast, flexible option thatâ€™s there when you need it.
Even with all these resources and funding options. You may still feel like the pandemic is just too stressful and overwhelming. Take the time to read through and soak in all of the information here and then give us a call. Sometimes it takes a second eye to look at things and decide the best option for you and your business.
Lean on us at REIL Capital, where we treat you like family. We are here to help and support you through all seasons of lifeâ€¦ especially this one!