Nina Renee
on
There are many programs that the government has provided to assist you if you’ve experienced business disruption as a result of COVID-19. We can help you decide if and what programs you might benefit from the most.
Understand your cash flow needs so you have a broad picture of your business’s ability to fund its obligations during the next quarter and during the next year:
- Determine the amount of cash, including accounts receivable you know you will collect, that is available to you.
- Determine your overhead obligations over the next quarter and the next year, including all operating costs.
- Determine what you expect your revenue to be over the next quarter and the next year, considering different scenarios that may affect your business.
Know where you can access the capital you will need:
Government Assistance Programs
- SBA 7(a) loan program expansion which allows for forgivable loans of up to $10 million to small businesses with less than 500 employees.
- Economic Injury Disaster Loan (EIDL) provides relief up to $2 million to small businesses that suffer substantial economic injury as a result of COVID-19 and permits you to maintain a reasonable capital working position.
Senior Bank Loans
- Asset-backed loans that can be used for immediate relief.
Junior and Equity Capital
- Unsecured loans from investors and institutions that have stricter requirements and guidelines but may be helpful in certain situations.
Restructuring Operations
- May become necessary to generate cash by restructuring the business’s operations.
Understand and apply for the SBA 7(a) Loan:
- You can apply until December 31, 2020 through an SBA Lender.
- Loan amount can be up to $10 million or 2.5 times the average monthly qualifying payroll costs and may be used for payroll costs, mortgage, rent, utilities and insurance.
- Loan forgiveness in certain specific cases during an eight-week period after the origination date of the loan.
- No personal or collateral guarantee required.
- Use the SBA 7(a) Loan Application Checklist to ensure you have everything the lender will ask for.
As we are learning to navigate through these times of uncertainty and adjusting to our new normal, we here are at The Foresight Companies want to be your go-to source for all topics related to your business operations.
Please visit our COVID-19 new Business Operations Resource Center frequently as we continue to update as changes are occurring.
If you have any questions or concerns, please do not hesitate to pick up the phone and give one of us a call at 1-800-426-0165.
*Please note that as information is updated and modified, terms and conditions are subject to change.