Businesses everywhere are being challenged due to COVID-19 pandemic. Many lenders are unwilling to extend financing to businesses in certain sectors, as they are uncertain about their potential to repay the loans.
Fortunately, there are other options for those who need help as a result of this economic crisis. If your business requires assistance to generate working capital, the government and alternative lenders may provide the solutions you need.
Some industries have been particularly affected by the fallout from COVID-19, and as a result, businesses in these sectors may not have the working capital they need. Travel, entertainment, and hospitality businesses have all been damaged by the stay-at-home guidelines and mandates. The airlines and tourism sectors have been greatly affected, as well. Trucking, transportation, logistics, and freight companies have likely experienced significant losses during this time of the pandemic. Since gatherings have been essentially banned in most states, virtually all events have been canceled across the country. Numerous retail businesses have been forced to temporarily close their doors. Gyms, spas, and salons have also been shuttered until further notice.
If your business is suffering from this crisis, the U.S. government may be able to help. Loans and grants are available via the Small Business Administration (SBA). Specifically, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was created to provide financial relief to small business owners.
You can apply for the Paycheck Protection Program (PPP) to get started. You should be aware that as of mid-April of 2020, the funds for the PPP were already depleted. However, government officials have expressed their desire to add more funds to this program, so filling out an application is still worth doing. The SBA also set up an express loan program, which may help your business to get needed working capital sooner than other options. If your business has been affected by another type of catastrophe, you might apply for an SBA disaster loan. Another option is to request an emergency advance, from the SBA. This grant is known as an economic injury disaster loan (EIDL).
Because there is so much need for financial assistance at this time, it may be some time before your business can get help from the government. Alternative lenders offer a variety of financing resources for businesses. Your business could get the funding it needs by securing a working capital loan, lines of credit, equipment leasing, or a cash advance.
If your business requires more working capital to stay afloat, contact GP Solutions today. We can help you find the financing options that best match your circumstances.