It’s no news that COVID-19 hit American businesses hard. Lowering demand and stagnating supply chains. As a measure to counter the situation, the U.S. government has stepped in with the CARES Act. Part of which was to offer public help via the Paycheck Protection Program (PPP). In recent weeks, demand for PPP has also regressed. This beggars the question as to why aren’t small businesses opting for PPP? What other alternatives do small businesses have to PPP loans?
The PPP is not the only loan funding option through SBA. There are other SBA loan programs with accessible funds for independent ventures such as Economic Injury Disaster Loans, express loans and express bridge loans to name a few.
Private funding can also be an alternative that emerging businesses can take advantage of. Especially if they don’t meet the criteria for securing a PPP loan. And private funding has been forthcoming!
- Zapier announced a $1 million small business assistance reserve
- Salesforce has offered $10,000 in grants to small businesses
- Goldman Sachs launched $500 million in SMB Emergency Loan Support
There are many other private sources to consider too.
Collaboration between local and state government initiatives offers another opportunity. Resources and funds like the Main Street Support Program can help distressed businesses. Crowdfunded business relief funds can be another source.
Facebook’s Small Business Grants Program can also be a source of help in the wake of the on-going pandemic. Facebook has joined forces with Ureeka to offer up to $100 million in grants and ad credits for organizations with 50 or fewer employees. The social media giant has also announced a resource center to help small businesses. It offers advice effective methods to remain operational during this pandemic.
Considering the tough times prevalent for every business, managing the books and accounts can be an additional burden for owners. This is where small businesses can make use of bookkeeping and accounting services such as Monily. These companies offer cost-effective alternative to hiring an accountant that would cost approximately $41,000 dollars a year.
While it is true that this economic slowdown is a tough challenge for this generation of entrepreneurs, it also presents an opportunity for financial innovation. Businesses who can identify and utilize windows of opportunities will come out stronger from this crisis. Though there may be some that will bear the brunt of the crisis, one thing is certain that there will also be some amazing success stories to come out.
Here’s hoping for the best for every entrepreneur working to navigate the high seas.
References
US Small Business Resource Center: https://www.goldmansachs.com/citizenship/10000-small-businesses/US/small-business-resources/