We hope you, your family, and staff are doing well and staying healthy. We wanted to make sure that you are aware of a few resources/options that you may want to take advantage of to help support your business as we grapple with the changing environment due to COVID-19.
- Apply for an SBA Disaster Loans: In the case of COVID-19, you may have already suffered, or will suffer, an “Economic Injury” (click here for Economic Injury Disaster Loan description). These “Loans cover small business operating expenses after a declared disaster.”
- You can apply for up to $2 million at 3.75% interest fixed for up to 30 years. This loan is directly from the SBA, not your usual lender.
- Determine if you’re eligible here. [Note, your location may not be on this list yet, but this list is likely to change.]
- Click here to go directly to the Disaster Assistance and Application website.
- You can use this loan to cover payroll, operating expenses, fixed expenses, and even refinance an existing debt.
- DO NOT WAIT IF YOU HAVE BEEN IMPACTED – the funds for this program are limited (the limit may be increased), but there is a good chance that once the word gets out that these funds will get used up.
- We can help! If you need help filling out these forms, contact us.
- If you have an existing SBA loan: Your bank may be able to provide a loan modification to help, including additional capital or deferred payment options (for example, depending on who holds your loan, you may be eligible for 3 to 6 months of deferment). You can contact your lender directly to see what options are available to you. Note – even if you have an SBA loan, this does not preclude you from getting a Disaster Loan, so pursue that first, and while that is going through the process, talk to your lender about a possible modification.
- If you have a conventional (non-SBA) loan: Still reach out to your lender to seek modification and deferred payments if necessary and if available. Lenders have many more tools and options available to them if they are part of the conversation early, rather than being brought in late in the game.
For people selling/ready to sell their business: From the perspective of continuing to market your company for sale, unsurprisingly we have seen a drop-off in the last week or so in buyer inquiries. Where buyers were pursuing, they have understandably hit the pause button in many cases as they consider the changing environment. However, we are also seeing messages from some buyers reiterating their commitment to buying a company. In the end, good, solid companies that are well-run will still be attractive – the process and timing might just be a little different than initially anticipated (and flexibility may be required to get the right transaction completed). We will continue to actively market your company and diligently follow-up with all suitable buyers. In the meantime, if necessary and available, please take advantage of the funding resources mentioned above. Also, keep track (as best you can) of COVID-19 related missed revenue, curtailed hours, closed days, and additional expenses so that we can document damages and any interim dips in the financials. Finally, think about ways that your company can pivot your business plan, offerings, marketing plans and messaging, and revenue streams – while some revenue streams are going away, others are opening.
Take care and please let us know if you have any questions.
