There’s no question that many businesses are struggling through unprecedented times. For the first time in history, we’re facing a massive economic fallout as the result of a global pandemic.

However, this doesn’t mean that there aren’t resources to help you stay in business – including a number of working capital loans!

SBA Disaster Loans

These loans were offered at a 3.75% interest rate for a period of 30 years. Unfortunately, there was a finite amount of money available, and there was a gap in availability. As of now, you can still apply for an SBA disaster loan of up to $2,000,000 with the proper documentation and business history.

EIDL Cash Advance

The Economic Injury Disaster Loans were impacted and changed into grants by the CARES act. Business owners were eligible for up to $10,000 which could be forgiven depending on what the money was used for. This grant has since been discontinued. However, future cash infusions might make it available again as the situation continues to develop.

Paycheck Protection Program

The Paycheck Protection Program is another result of the CARES act that allows small business owners to access up to $10,000,000 in funding with a 4% interest rate for a period of up to 10 years. The loan can be forgiven when used according to the terms provided by the SBA. This program has experienced funding issues. However, it’s important to continue to monitor the program as new funds are becoming available.

Coronavirus Specific Loans

Emergency loans specific to COVID-19 are hit and miss as of right now. It’s important to research the availability of funds and to seek assistance through forgivable or low interest government loans first. If these are unavailable, many small lenders are offering cash flow assistance at a lower interest rate that may be able to help you weather the storm.

Working capital loans for high-risk businesses may also be available at this time via asset based lenders and invoice factoring. Again, it’s imperative to weight your options and the financial risks involved.

For more information and to explore your options, reach out to Painted Horse Capital today!