How COVID-19 Is Impacting Business Funding
With recession becoming a very real possibility, small companies like yours need to adapt – and quickly. That means following the wisest coronavirus business advice you can find.
Leverage Government Resources to Protect Longevity
At a time when restaurants, retail stores, and major corporations are all reeling in the wake of an unprecedented crisis, rugged individualism has little or no place. For many firms and merchants, the only way they will survive is to reach out for financial help. One of the most reliable sources of this assistance is proving to be national, state, and local government entities.
On March 27, 2020, President Trump signed the CARES Act into law. This legislation provided $376 billion in financial relief for U.S. workers and businesses. Although this funding source was quickly depleted because of the great need throughout the nation, later bills have made additional contributions to this funding stream.
Regardless of the products they sell or their physical or online footprint, virtually every commercial enterprise throughout the world is being affected by the pandemic.
As a result, companies may feel a number of profound effects due to COVID-19 related changes:
• Capital: Access to capital might become impaired or stop altogether, making it difficult or impossible to pay employees, maintain inventory, and respond to market fluctuations. Loans guaranteed by the Small Business Administration (SBA) can help to restore these lost funds.
• Capacity: Workforce capacity and resiliency could be affected. Economic, family, and health concerns can sideline employees and hinder their productivity, simultaneously impacting your bottom line.
• Vendors: Supply chain interruptions due to virus-related concerns can curtail your inventory and diminish your ability to furnish your customers with products and services.
• Sanitation: Disinfection and cleaning of your facilities may cause you to incur additional costs. SBA equipment loans are a possible solution that can get you the materials you need in order to keep your physical plant safe for customers and employees alike.
• Coverage: Insurance may or may not cover coronavirus-related business interruptions. Be sure to find out if yours covers you for eventualities such as this. If it does not, and you cannot update or enhance your package, obtaining a preemptive SBA loan could mean the difference between a fast recovery and an extremely painful one.
• Travel: Travel restrictions may make it difficult or impossible for customers to access your business. The SBA offers trained experts and written resources that can help you to tailor your response should this occur.
When it comes to obtaining government assistance, both the general landscape and specific availability of funds are changing every day. Never assume that something may or may not be available now just because it was advertised as such last week.
Constant vigilance and creativity are a must if you are to successfully navigate your options.
Use Working Capital To Pivot Your Current Business Model
Instead of or in addition to help from governmental entities, many enterprises have a wealth of assets already at hand. The solutions can be as multifaceted as the businesses themselves, reflecting a melding of existing financial reserves with a healthy dose of creativity.
What do we mean by this? An example might be illustrative. Imagine that you run a small shop that sells knitting supplies, including yarns, needles, patterns, and instructional manuals. When the pandemic struck, and foot traffic came to a halt, your store had to close its doors.
That does not have to mean that your entire business is shuttered. With a leap of faith, some elbow grease, and a small financial outlay, you can pivot your approach and begin selling items online in your new, tech-savvy virtual location while enhancing your brand and online presence.
Even after COVID-19, your new, updated e-commercial operation can continue to help your business thrive.
Take Steps Now to Get Back to “Normal” Quickly
Although it may be hard to believe during these most challenging of times, the pandemic’s grip on the world will eventually relax. When it does, businesses must be ready to leap into action to rejuvenate their presence not only for their own survival but for that of their employees.
For smaller companies, these actions could involve the following:
• Borrowing money preemptively to pay for inventory and pivoting focus so that you are ready for a post-coronavirus world.
• Spending time thinking about how to make your business facilities and procedures safe in terms of cleanliness and social distancing so that consumer confidence is guaranteed.
• Tweaking and expanding marketing campaigns to reflect the post-pandemic climate with an emphasis on safety and resilience.
While it is difficult to imagine exactly what the business climate will be like when that time comes, one thing seems sure: Companies of all sizes may need to seek outside options for capital.
That is where Expansion Capital Group can make a difference in your company’s long-term, post-pandemic future. As an entity that has already served over 12,000 small businesses by connecting them with the working capital they need to grow, we are adept at helping you through the most unpredictable of times.
We understand that financially strapped entrepreneurs are contending with numerous challenges during these difficult days. Many may not have the time or bandwidth to endure the complex and protracted process of applying for a traditional bank or SBA loan.
Since our founding, we have been helping businesses to quickly gain access to the funds they need with minimal paperwork.
Our dedicated professionals can discuss the post-COVID-19 needs of your business and are ready to work with you to obtain for your business the financing it needs to sustain and grow its unique line of business, usually funding in a matter of days.