Government stimulus available for small businesses
Plan for your small business; the government can and will help!
Small businesses take time, energy, and money to become a success. From opening your small business to maintaining everyday operations, small business funding is vital. You must have a consistent cash flow to cover the company, employees, tools, software, insurance, training, etc…
What happens if that cash flow comes screeching to a halt? As a small business owner, endless amounts of personal funding might not be available to you. The cost of your small business could very suddenly jeopardize the future of your investment.
The small business sector has taken a significant hit due to the pandemic. Whether it was due to a lack of opening capabilities or the public’s economic instability, many small businesses could not generate a consistent cash flow. However, the cost to run the company did not stop. Luckily government assistance is available for small businesses, and you need to know where to look.
Start with these five tips to get relief for your small business.
As stated in this article, small business funding can come straight from your lender. If your lender does not work in conjunction with government programs, you can find another that will. Borrowing from a new lender does not mean that you will have to switch your original lender.
Next, you must apply for loans like EIDL (Economic Injury Disaster Loans), PPP (payment protection program), and SBA Loans/Grants. The government assistance will not seek you out. As a business owner, it is your responsibility to make sure that you educate yourself on your state’s relief opportunities. It’s crucial to find, and research sources before an economic disaster happens. Small business funding could be minimal, and quickly getting on lists for recovery assistance will guarantee the help your small business needs.
Like the PPP program, programs are specialized government assistance that offers funding for periods and has application deadlines. To take advantage of programs like the PPP, make sure to stay educated on your small business funding eligibility.
EIDL (Economic Injury Disaster Loan)
You might be asking yourself what an EIDL is and if your small business would be eligible. An EIDL is a loan given to small businesses during an unexpected disaster like a natural disaster, civil unrest, or fire. If your business is in a declared disaster area, government assistance may be available to you. If your small business meets the eligibility requirements, your small business could receive up to 2 million dollars in assistance. First, your business must sustain economic-financial injury. This would look like your company failing to meet payment obligations and regular operating expenses because of a declared disaster. An EIDL loan will aid your small business in repairing this financial injury until normal operations can resume. However, it is essential to note that government assistance is a last resort effort. It’s necessary to ensure that your insurance policy would not cover the loss before applying for a government EIDL that is not forgivable. Non-forgivable means that, in most cases, you must pay back an EIDL.
SBA (U.S. Small Business Association) Loans
Many other small business-related loans are available that do not encompass a disaster effort. Look at these four top small business loans to consider your options today. Generally approved lenders offer small business loans, not the government itself. The government incentivized these lenders to provide affordable small business loans rates and terms through the SBA (U.S. Small Business Association).
SBA Grants
The government also offers free money to small business entrepreneurs. You are living in a land of government incentivized business opportunities. If you’re starting or have been operating for some time, small business grants could be eligible. Yes, we will repeat, you do not need to pay back small business grants from the government. Right now, these small business grants include coronavirus, federal, and state grants. Pandemic-related grants include the shuttered venue operations grant, targeted EIDL advance, and the restaurant revitalization fund. A comprehensive database of federal loan options is available today at Grant.gov. You can find state and regional small business development centers to help with a startup. Government grant programs have specializations across demographics to promote and diversify entrepreneurial efforts.
Women, veterans, and minorities are encouraged to apply!
Corporate small-business grants contests
Corporations are always offering philanthropic opportunities that include small-business grants. Take, for instance, the annual FedEx Small Business Grant Contest and the monthly National Association for the Self Employed. If your small business idea needs a boast, but you are not eligible for grant assistance, this is a great option to acquire free money.
Starting a small business can seem like an overwhelming investment or a missed economic opportunity. Don’t fret. Government assistance is available to help support a diverse financial playing field.
Make your dreams come true by applying today!
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