The COVID-19 pandemic brought with it many challenges. Individuals, families, and businesses across every industry have never faced adversity on this scare in their lifetimes. However, our new reality also brought out our collective strength and resilience. We have seen neighbors, families, small businesses, corporations, and other willing volunteers helping one another because our communities, our economy, and humanity itself cannot pull through this time unless we work together. In these times, people are reaching out to find reliable resources to help their businesses to thrive and overcome today’s challenges as well as the ones ahead.
Relief Is Here
At the end of March, the Coronavirus Aid Relief and Economic Securities Act – or CARES Act – was signed into law. This provided over $350 billion in special SBA relief and recovery loans, also known as the Paycheck Protection Program. The Paycheck Protection Program (PPP) offers a variation of the SBA 7a loan, whereby small businesses, nonprofits, veterans’ organizations, and more can receive funds to keep operations running. Financing from PPP loans are to be used to support payroll, maintain the workforce, and help businesses cover expenses such as utilities, rent, commercial mortgages, and medical benefits. This aspect of the CARES Act is being leveraged to keep our economy moving, even when businesses have to scale back their direct contact with the public. Additionally, the CARES Act has provisions for loan relief, so businesses that do not lay off employees or reduce wages after receiving PPP loans will not have to repay the funds received. Loan forgiveness will be reduced for businesses based on the number of employees furloughed or if they do not maintain operations. Simply put, PPP loans are designed to keep businesses running and prevent unemployment to keep our economy healthy.
While PPP loans offer much-needed relief to businesses and their employees, some entrepreneurs need more immediate access to working capital to cover time-sensitive expenses. Unsecured business lines of credit provide businesses with a reliable source of working capital without requiring collateral. Unlike traditional loans, unsecured business lines of credit can be drawn upon as needed. Since these lines of credit include revolving options, the amount of financing available if replenished as the balance is repaid. Unsecured lines of credit are available to established businesses, as well as new and small businesses to help fill in gaps in working capital quickly and efficiently.
We’re Here to Help
If you need extra financing for your business, contact the team at Nanaki Capital We offer a wide range of solutions and resources to help businesses nationwide make it through these challenging times.