Here are some suggestions to keep your business alive over the next few months until COVID lets up.
Review your Income and Expenses
Delay or eliminate expenses where possible. Reduce your overhead.
Reach out to all accounts payable and ask them to make smaller, but continuous payments to you, so that everyone continues to have some manageable cash flow.
Get an SBA loan or State and City loans
Contact the Small Business Administration (SBA) online and apply for these two loans immediately:
Economic Injury Disaster Loan – sba.gov – makes available $2M at 3.75% fixed for 30 years
Paycheck Protection Program – apply to an SBA member bank – makes available up to $10M in 2 year, 1% loans where you can get forgiveness of your payroll and other expenses.
Go to your state’s website to see what emergency funds are being made available for grants,loan programs, advice and counseling for small businesses in need of assistance during this pandemic.
Go to your City’s website to see what emergency funds are being made available for grants,loan programs, advice and counseling for small businesses in need of assistance during this pandemic.
Speak with your accountant
Tax return filing deadlines have been extended through July 15. File your taxes early if you’re receiving a refund. If you’re offering paid time off to your employees under the new federal legislation, get familiar with the tax credits you can get back.
Reach out to your banker
Confirm your available lines of credit. Ask if your bank is offering any special loans or financings or new payback programs for small businesses related to COVID.
Talk to your vendor and suppliers
Call your suppliers and vendors and discuss continued supplies and extended payment terms to help you with your cash flow. All parties can benefit and continue doing business together.
Use this time to recalibrate, catch up, and implement more efficient systems
Plan for the future. Address advertising. Adapt your business to the “new normal”.
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