How Businesses Can Get Emergency Working Capital
In the wake of the impact brought about by the coronavirus pandemic, more small businesses than ever before are finding themselves in need of emergency funding. A great many small businesses have been hurt by low volume of business, and because their supply chains have undergone serious disruption. In addition, traditional bank loans are even less available than before, because banks recognize that some businesses will be unable to ramp up their volume of business because coronavirus is preventing that from happening.
With all these things having such a serious impact on small businesses, it is more important than ever that there be some options available for emergency funding. Here are some of the ways that you can get money in your hands quickly, to help fight the effects of the current pandemic.
Paycheck Protection Program
This bill was passed by Congress in March 2020, and it will cover the cost of a company’s rent, mortgage interest, payroll, and employee health insurance. Up to $10 million is available to a business under this program, and there will be a repayment period of up to 10 years.
SBA Express Loans
These loans which are available from the SBA can be arranged much more quickly than the traditional SBA loans which might take 30 to 45 days. By securing an Express Loan, you could have money in your hands within two days, so as to manage any specific shortfall you might have in your company.
SBA Disaster Loans
Another program established by the federal government in response to the coronavirus pandemic, this was the initial program set up by the government to help businesses which were seriously impacted by coronavirus. While the program is still operational, most of the manpower and funding apparatus has been diverted into the Paycheck Protection Program, as well as the SBA Express Loans program.
Coronavirus SBA Loans
Small businesses which have been heavily impacted by coronavirus can still seek an SBA 7(a) loan, which will help to keep you operational during this period of lower commerce and customer activity. Loan applicants will have between three and 30 years to repay the loan, which should put you well beyond the time frame of the pandemic.
Does your business need emergency working capital?
Many businesses encounter situations which leave them in need of emergency working capital. If you find yourself in this position, contact us at Kasher Capital, so we can discuss some options which might help relieve your financial stress.