The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to minimize the negative impacts of the shutdown on the US economy, with special provisions for small business owners. For those who currently have or are pursuing an SBA 7(a) loan, the CARES Act will impact you in several ways. You should take these affects into consideration as you’re making decisions that will affect your immediate and future financial situation.
If you currently have a 7(a) loan, the SBA should automatically be working with your lender to make 6 months of payments on your behalf. Those applying for a 7(a) loan now will receive 6 months of covered payments, while funds set aside by the CARES Act last. For new 7(a) loans, funds must be fully dispersed by September 27, 2020 in order to be eligible for this benefit.
As long as you use your 7(a) loan for different purposes than your PPP loan, you can take advantage of both programs at the same time. As a reminder, the PPP is intended to cover payroll-related expenses like compensation, healthcare, etc., while the 7(a) can be used for everything from real estate to debt consolidation to equipment purchasing to renovation or expansion.
Were you waiting for the right time to take your small business to the next level? Now might be it. If you’re currently renting a building or machinery, you can turn those line items into tangible assets, with 6 months of payments covered by the SBA. For example, if you financed $500,000 total in a 10-year term, you could have more than $30,000 in payments eliminated. That’s over $30,000 extra for you to supplement cash flow, settle other debts, or invest in your business.
Even though COVID-19 has created some uncertainty across industries, the SBA 7(a) loan can provide your small business with the support you need to consolidate debt or make an important purchase. With added benefits created by the CARES Act, the opportunities to grow your business are greater than ever.
The 2021 holiday season is primed to be one of the best in recent memory for retailers. And that’s after 2020, which saw online sales rise 20.6% year-over-year, according to 1Digital Agency. Here are four ways to make sure you’re ready.
This holiday shopping season may throw some curveballs, but with a bit of planning, you and your staff can be ready for anything. With stores restocking to pre-pandemic levels, there’s a supply chain crunch, so these are suggestions to help you do your best with what inventory you already have on hand.