In the crescendo of the pandemic, as businesses struggled to stay afloat despite tough economic times, most hoped the federal relief packages—the Paycheck Protection Program (PPP), in particular—would come to their rescue. But that wasn’t the case, according to KB and Katie Brown’s print business in Minneapolis. Even after applying with three lenders, they never received any Coronavirus relief loans disbursed between April and August. “It just doesn’t seem like the program was built to support small businesses,” lamented KB Brown, who is witnessing small companies in his Black-dominated and low-income communities suffer to their closure. “It’s bullshit.” Congress’s instructions […]

According to the National Federation of Independent Business, it is estimated that about 70% of small business owners have attempted to apply for the $350 billion Paycheck Protection Program or PPP. Those that did apply, 20% reported that their application for the loan had been approved and that those funds were deposited into their account on April 17. However, it was found that 80% were still waiting to hear on the status of the application.  About 50% of small business owners applied for the Economic Injury Disaster Loan Program or EIDL, which offers loans for disaster assistance. NFIB’s survey discovered […]

The Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act) was passed into law on March 27, 2020. It was known as the secondary response to the devastating economic effects of COVID-19. This new law provided benefits to both individuals and small business owners nationwide.  One of its main components was the Paycheck Protection Program or PPP. This program offers loans that are forgivable for small business owners and to keep their employees on the payroll.  Guidelines For Loan Forgiveness In order for these loans to be “fully forgivable”, borrowers need to ensure that they do […]

Covid-19 relief loans for manufacturing industries are what will sustain their future. Manufacturers have been in the front lines of providing essential needs for healthcare workers, consumers, and for the development of treatments during this Covid-19 pandemic.  The National Association of Manufacturers (NAM) conducted a survey where 80% of manufacturers predict that the pandemic will have a negative financial impact on their business. Adding to the problem is that most manufacturing jobs cannot be performed remotely, but onsite. Oil prices and demand have continued to drop, there are bottlenecks in the supply chain, and anxiety is ruling the “credit market.” […]

An emergency covid-19 relief loan for the automotive industry is desperately needed. Like a thief in the night, the coronavirus has robbed many of us of our health, freedom, jobs, buying power, and a stable economy. Not only has the virus plunged our country into a serious health crisis, but it has also plunged our economy into a recession.  Even though every sector has been hard-hit by the pandemic, one particular industry is starting to feel the pinch…the automotive industry.   Consumer confidence is at an all-time low, especially with so many lay-offs and social distancing measures.  The last thing on […]

Microbusinesses are struggling to survive the status quo; no wonder all eyes have been on the Paycheck Protection Program (PPP) fund, which Congress passed through the CARES Act. But small businesses must tread with caution because missing on a few details may mean trouble in the future. For instance, many small merchants only know that—if you take out a PPP loan— forgiveness or leniency is possible. But only a handful know what could compromise your chances of qualifying for leniency? First, if you already have such a loan, you have up to 8 weeks to max out the finances on […]

The Covid-19 relief loan for the retail industry is a welcome lifeline for struggling retailers. The Covid-19 outbreak continues to sweep the country, causing devastating damage to our economy and leaving very few businesses standing. One sector especially hit was the retail industry. On March 27, 2020, after a week of some intense negotiations on Capitol Hill, both the House and the Senate passed a $2 trillion stimulus package to help sustain the faltering US economy.  But how will that help retailers and how can they take advantage of the assistance? Keep reading below. The CARES Act The Coronavirus Aid, […]

Running a business is a demanding task, but the status quo almost doubles up the challenge for a small business owner. You have to make critical decisions that will influence your today and tomorrow, and almost all of them revolve around funding. Since the Federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and news of “a $350 billion small business relief fund” went viral, almost all microbusinesses want a slice of the cake. But do we understand what they are? The CARES Act provides funding through the Paycheck Protection program. And PPP loans offer funding up […]

The hotel industry among others has felt the greatest negative impact of the COVID-19 crisis. Unfortunately, the economic uncertainties are still ahead. If you need financing for your hotel business, this article will help you with some hotel financing options during COVID-19. Hotel Financing Options During COVID-19 The decision to close hotels and several other businesses has brought a disruptive effect of the travel ecosystem. So, the tourism industry worldwide has been hurt a lot. The Federal Reserve has recently lowered the interest rates to a significant extent, and the prime rate was 3.25% as of March 20, 2020. This […]

It is not easy to run your business as usual when Coronavirus has created serious disruptions in the order of operations. For many business owners, the catch is to continue serving their customers and rake in profits as usual, in a relatively volatile economy. And of course, money is the major bone of contention—many merchants would appreciate the convenience of a lump sum of commercial funding but most lenders are not well-placed to offer it. Nevertheless, the Federal Government leveled the field for US small businesses on March 27 when President Trump approved the CARES Act. The approval of the […]