It took less than fourteen days for the funds approved for small businesses through the CARES (Coronavirus Aid Relief & Economic Security) Act to operate dry and for banks and lenders to close applications. Experts warned from the beginning the money would not go far compared to the magnitude of the need, and that prediction rang true. With the country shuttered and quite a few of states under stay-at-home orders with essential businesses closed for the near future, stress is mounting. Talks already are underway in regards to a continuation of funding in an effort to halt the catastrophic economic impact from the Coronavirus pandemic, but right now the loans are on pause.
Everyone knows, and knew, the money was not enough, but because the reality of that sets in, the next question is inevitable: What goes on now?
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I Applied But Don’t Know If I Got Funded. Exactly what do I Do?
Unfortunately, if you completed a credit card applicatoin but haven't yet talked to a lender, it's unlikely you will receive funds in this round of aid relief. You may still find a few approved businesses waiting on funds for disbursement, and there is no reason to think approved loans won't receive their money soon. The entire roll-out of the relief money was met with glitches and hiccups, hindering small businesses from taking advantage of the hope the loans could bring. Those who received funding and those who didn't met different fates only by luck (or previous connections), leaving many companies feeling abandoned.
What are you able to do? Now, more than ever, it’s vital that you remain on top of the current news cycle regarding loans and grants, inform your story, and lobby at the state level. (Some individual states have allocated stimulus grants in addition to the authorities. Check with a state for options.)
I Didn’t Obtain the Funds. Exactly what do I actually do?
The only salve here is knowing that you and also millions of others are fighting this storm together. However, as salves go, that’s not really a very powerful one and i'm not cut out to be the bearer of not so good news. At the present moment, Congress is in discussion to finance another wave of loans and grants; however, it's not known if that money goes back into the PPP or EIDL programs in order to other branches of suffering industries. The cherry on top: There’s been a lot of arguing.
It is easy to feel despondent when doors keep closing, but more than ever it's important for smaller businesses in truth of the situation and work to amplify concerns.
We have experienced a determined community effort nationwide in order to save the little businesses and band together to provide where there is need. Its the chaos on the planet, from a dysfunctional government and a virulent disease, people want to help others. But right now, you will have to look outside the Federal choices to stay in business. We’ve heard from bosses eager to pay their employees and watched as businesses rally to meet the requirements of a changing landscape. However, your online business cannot survive this whether it exists in a vacuum: Place a face and a narrative for your business and the individuals who rely on your business, and lift those voices high. Talk to your representatives in Congress. Use social media. Rally the people.
Also, prepare. Should you be not one of the first ones to apply once the loans rolled out on April 3, you need to absolutely be ready the next time around. (It is unclear, but at the moment, it appears that businesses would need to re-apply if additional aid became available.)
What Concerning the EIDL Program?
At the moment, all funding is paused and also the loan money is spoken for; which goes for that forgivable PPP loans and also the EIDL program. The EIDL program is closed to new applicants, but the SBA said it continues to be processing loans for businesses who've applied on a first-come, first-served basis.
Other Sources Of Small Business Funding
While waiting for the PPP and EIDL programs to be refunded, you aren't without recourse. Check out our article on Small Business Loan Resources & Guides For Businesses Affected By The Coronavirus. Online lenders may still willing to work with you and also issue loans with reasonable terms. If you simply need to stay alive until the government can get its act together and re-fund the PPP and EIDL programs, you could try trying to get a short-term loan.
Don’t give up. We’re all within this together. For additional resources on taking your business online for now, choosing delivery apps, shipping, and keeping customers current during the coronavirus crisis, take a look at our full hub of Covid-19 resources for small business.
