This is a followup on an earlier blog post: Updates to the Families First Coronavirus Response Act & a Note about SBA Loans.
The U.S. Small Business Association (SBA) is offering disaster relief loans to small business affected by the COVID-19 pandemic. Small business can apply for a loan up to $2 million with a fixed 3.75% interest rate for up to 30 years.
Small businesses in any county in Tennessee are eligible for these loans.
Generally, I don’t advise including debt as part of your business strategy when it comes to funding working capital. It is more of a last resort. But even if you don’t currently need the loan, it may be worth considering applying for the loan, if you anticipate needing financing at some point this year.
As small business owners, this is our time to concentrate on and prioritize strategic financial decisions. Don’t borrow money to mask the pain of taking action toward difficult business decisions. Consider borrowing money when you have made all possible cost reductions, adapted your business model to the Safer At Home initiative, and you still think you may be in need of capital.
For more information and to apply, visit https://disasterloan.sba.gov/ela/. It may take a little patience as the site has been pretty slow for the past week. Not surprising I guress. I’m sure that the website is getting a fair bit of traffic.
Here are a couple more links: