At the close of June, President Donald Trump signed a bill re-opening the application window for the Paycheck Protection Program (PPP), extending the deadline until August 8. This five-week extension was approved by both chambers of Congress with unanimous consent. This move will ensure this source of funding stays open a little longer for the many struggling small businesses currently navigating COVID-19 challenges.
The PPP was initially launched in early April as the pandemic hit the U.S. economy hard and forced many businesses to close their doors and/or pivot their brand strategy, offerings, and budgets. The program has gone through two rounds of funding, with just $129 billion in funding remaining. The intent of these forgivable loans is to help small business owners – and other qualifying entities – cover payroll and other daily costs.
While the extension is good news for those who have yet to receive a boost of working capital to weather the current crisis, the fact remains that this is a short-term solution. A short-term solution that will expire. Cash flow will continue to be a serious challenge for many business owners. More and more companies will need to seek alternative funding options to manage the economic situation and keep their doors open.
Questions to Ask Yourself During COVID-19
Understanding your business’ cash flow is more important than ever before. Successful business leaders prioritize developing a financial strategy that fits their specific goals, needs and situation. As you wait to receive funding, there are many other questions you should ask yourself and steps you can take to strengthen your financial position.
- How can my strategic goals and timeline shift to meet new demands?
- Where do I need to allocate resources?
- How will I ensure sufficient cash flow at each stage of my business’ growth?
- Are there other lines of business I can open to achieve my goals?
- How can I keep communications flowing to uphold morale and motivation?
- Are there other sources of working capital to support growth and improve flexibility?
The businesses led by individiuals with an infinite mindset tend to thrive in the midst of change and uncertainty; they possess the resilience to thrive in an ever-changing world. By reflecting on questions like ones above, you too can help your business build a solid plan of action to follow through on.
Finding Flexible Funding During COVID-19
One of the biggest challenges for businesses during COVID-19 has been finding a fast source of funding. Even if financing is obtained in a timely manner, it is not always flexible. In order for the PPP money to be fully forgiven, for example, 60 percent of the funds must have been used for payroll. Many business owners are turning to alternative lenders like First American Merchant for more flexible options, like merchant cash advances.
The key is to choose a partner that offers a funding option that meets both your short-term and long-term needs. Ask yourself, will you get your money fast? Do they have any expensive, hidden fees? Will their cash flow solution help you operate smoothly and cover payroll?
By partnering with a reputable, alternative online lender like FirstAmericanMerchant.com, you can enjoy the safest and cheapest business funds during COVID-19 recovery, including a merchant cash advance. FAM is an award-winning alternative online lender and processor that specializes in high risk business funding and merchant processing.Get Started Now