To limit the spread and save lives.
As of early April, the coronavirus spreads to 208 countries. To limit the spread and save lives, many states decide to lockdown. Citizens are advised to stay home and stay healthy, and only leave the house for necessities.
Due to the shut-down, economies all around the world suffer. Most individuals have terminated activities that earn income, daily wage workers and families with lower income suffer the most with groceries, rent, and other bills. Every business, large to small is suffering because the whole world has hit a pause to almost all the activities. Business went out and came back often, people lost jobs and found them soon. But the pandemic is an unexpected halting that puts every business at risk.
The business costs do not spiral as the sales are paused, but it comes to paying fixed expenses that are becoming a great threat. Businesses all around the world struggle to pay out wages, rents on property and debt.
There is uncertainty, of when things will go back to normal. Until then, every individual has to deal with the basic expenses of food and shelter. Personal finance growth and asset building seem impossible at the moment. If you are someone who owns a small business and is struggling with expenses, you might be on the verge of losing patience. There are however, ways you can avail funds to help you stay sane.
Financial distress refers to the financial circumstances of an individual or business where it is unable to pay the financial obligations. Due to the pandemic, economies and all businesses around the globe suffer financial distress.
The economies all around the world are at threat of going into depression. The urgency of the situation demands the governments act wisely. Though the countries suffer great economic losses to sustain lock-down, there seems no other option that works better.
The U.S signed the CARES Act 2020, which is the largest stimulus package ever signed in U.S history. The CARES act, also known as Coronavirus Aid, Relief and Economic Security Act, is passed to help citizens through these difficult times. The package aims at providing direct financial aid to those who are eligible, protect homeowners and tenants, avoid foreclosure by delaying mortgage payments. It will further help local governments form policies to deal with the situation that comes next.
SBA’s Paycheck Protection Program
To help small businesses stay in the market, the Act also identified the funds that will be given to small businesses. The businesses which apply first will be served first. Those who meet the requirements and are eligible for availing funds, will be granted loans only. Applications can be submitted through current SBA lending financial institutions. Businesses suffer all over the country as the states lock-down due to pandemic. If you own a small business, with less than 500 employees, and are currently struggling with fixed costs such as employee wages, rent and other loans. And want to apply for a loan, this is a great opportunity.
Check the eligibility criteria today and get in line to apply for the Paycheck protection Program, you should be making haste! You should be trying to get your file on top, to get a loan. Pull as much information as you can from your bank and let them know that you will be applying for a loan. To get the loan, there is going to be competition, we recommend start organizing soon. This is an opportunity to sustain your business and you should avail it.
SBA’s Economic Injury Disaster Loan
The SBA’s EIDL is also designed to help small businesses, sole proprietors, independent contractors and non-profit organizations in this crisis. The loan offers a capital of up to $2 million with a 3.75% interest rate for small businesses. The loan repayment can be extended to a 30-year term.
The SBA’s loan is primarily going to be granted to small businesses and other eligible organizations, to help them get out of the financial crisis. The payments on the loan would be deferred for the first starting year. The requirements are not tough and the loan does not require personal guarantees. If you are a small business owner who is currently sitting home and worrying about the payments, you should be gathering information about the EIDL. The EIDL will also be providing emergency financial grants of $10,000.
The emergency fund will be available within 3 days of application and will be forgiven if the business is unable to pay. The payment of this emergency fund will not be obligatory. However, if you manage to borrow through Paycheck Program and EIDL, the $10,000 grant will be deducted from the forgiveness amount.
The loans are to help the business in crisis and they are given out to help as many businesses as possible. The CARES Act does not allow the individuals and businesses to secure both loans for the same purpose, to help businesses equally.
The businesses all over the U.S suffer financial distress as the country enters lock-down due to the pandemic. The government however, tries to help boost the economy by providing the biggest stimulus package ever declared in the history of the U.S. The pandemic situation creates uncertainty, of when will the life get back to normal. But the government provides economic aid to its citizens directly and helps businesses avail funds to fight the financial crisis. If you are a small business owner struggling with payments and want to secure a loan, you should consider looking for the above-mentioned loans. You should be getting your ducks in a row and apply for a loan. Those who appear for availing this opportunity go first, will be served first!
Visit our website: https://alignchancefinancial.com/ Or chat with a live representative to learn more, and how our program can help your business.