So many businesses have been hurt by the COVID-19 crisis almost everywhere in the world. The enormous economic challenges created have forced many businesses to close their doors. Let’s take a look at corona relief loans, as well as at alternative financing options for your business.
COVID-19 Funding for Business
The COVID-19 virus has put many out of business in the U.S., as well as in other countries worldwide. To protect businesses, the government offers various relief programs such as the PPP (Paycheck Protection Program). Banks owning less than $10 billion in assets provided nearly 60% of loans during the 1st stage of the PPP, as the Small Business Administration (SBA) reported.
Both federal and alternative loans are essential for keeping businesses alive. Lack of access to the necessary working capital has made many businesses stop operating. E.g., in Georgia,more than hundred thousand businesses have already received nearly fourteen billion dollars through PPP funding.
In May, economists forecast that over 100.000 small businesses forever closed their doors. Recent research by the National Restaurant Association reveals that 3% of restaurant owners are already out of business.
Corona Relief Loans & Alternative Options
According to the analysts in the field, the worst wave of small business bankruptcies and closures since the Great Depression has only started. It’s impossible for small businesses to keep operating without any income coming in for weeks and then not reopening at full capacity, as business owners say.
Today, having access to the necessary working capital plays a critical role in keeping your business alive. If youneed corona relief loans, an alternative online lender can be the go-for option for you. With a respectable alternative business funding provider, you can enjoy the most secure and cheapest rates in the space.
4.2 million businesses have already got emergency loans from the Small Business Administration, but that’s just part of the 30 million small businesses throughout the nation. Only 1.6 million of the 6 million small businesses in the U.S. eligible for the COVID-19 relief package got a fraction of the 1stallocation of PPP funds, according to the Washington Post.
James Hammond, chief executive of New Generation Research, says nobody in business has ever seen the level of bankruptcy activity expected.
To sum up,the PPP helps businesses survive the financial crisis caused by COVID-19. In case you’re looking for other funding types, consider working with a reliable alternative online lender.
Author Bio:Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their corona relief loans solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.
