The coronavirus continues to leave business owners feeling uncertain about how to run operations and pay and retain staff. If sales are dropping and you’re wondering how to sustain your business without taking on a crippling amount of debt, you may want to consider what a Small Business Administration (SBA) loan can do for you.
The SBA helps small businesses acquire loans that traditional banks may feel are too risky. An SBA loan is a lower-risk loan that’s partially guaranteed by the government.
Because the coronavirus is making it difficult to cover normal operating expenses (e.g., payroll, inventory, fixed debt, etc.), the SBA’s Economic Injury Disaster Loan (EIDL) is a low-interest loan that can help. The loan amount is based on your business’s financial needs and the repayment term is determined by your ability to repay the loan.
To determine whether you need an SBA loan:
- Figure out your cash needs and demands, including the cash needed to cover core business operations for at least the next 45 days
- Monitor your short-term cash position carefully
- If you don’t have enough cash to cover the next 45 days, you may need to apply for an SBA Coronavirus Disaster Loan
For more information about SBA loans and how you can apply, download this guide.
At Obsidian HR, we’re dedicated to helping Colorado’s small and medium-sized businesses through this incredibly challenging time. If you would like to speak with one of our experts on SBA loans (whether you’re a customer or not), we’re here to help. Contact us at firstname.lastname@example.org or (720) 456-390.