Financing Alternatives Beyond the Paycheck Protection System
Within the wake regarding the coronavirus, smaller businesses are dealing with challenges that are unprecedented. Regional and governments that are national given lockdowns causing numerous organizations to shut their doorways. Consumer buying behavior has shifted, too, harming interest in non-essential products or services.
Luckily, Congress recently passed the Coronavirus Aid, Relief, and Economic protection Act (CARES Act) to greatly help these businesses that are struggling. The CARES Act also created the Paycheck Protection Program (PPP) to offer eligible businesses an 8-week forgivable loan up to $10 million in addition to supporting several traditional small business financing programs.
Struggling small businesses should submit an application for a PPP loan —especially as it could be completely forgiven if utilized properly within the 8-week duration. Nonetheless, let’s say the Paycheck Protection Program (PPP) is not adequate to maintain your company afloat?
Below are a few extra funding options for companies that require more money than they are able to get through the Paycheck Protection Program.
Other Financing Options Inside The CARES Act
Businesses in search of extra funding should start with evaluating the SBA loans outlined within the CARES Act. The CARES Act includes provisions to expand other traditional SBA financing options such as: in addition to PPP loans
- Economic disaster and injury Loans (EIDLs) and Loan development
- SBA Credit Card Debt Relief
- SBA Express Bridge Loan
All the loan that is COVID-19 includes its very own qualifications and needs, so make sure you review and realize which choice is perfect for your circumstances before you apply.
As an example, the Economic Injury and catastrophe Loan (EIDL) provides a 30-year loan that is fixed-rate 4% to companies that can show a considerable financial damage caused by the coronavirus. Continue reading “Financing Alternatives Beyond the Paycheck Protection System”