Many business owners find themselves pivoting their business model, scrambling to expand delivery channels, or working to retain their employees during the COVID-19 global pandemic. Government actions took place swiftly and left some business owners focused on how to keep their business going through the social distancing mandates.
One main concern for business owners is the payments on their business loans through banks and other lenders. Financial institutions have received guidance from their primary regulators encouraging them to work with their borrowers during this pandemic. If you are a PPNB customer and you need assistance with your loan payments, please contact firstname.lastname@example.org and we will assist you. If you are a business owner with loans with other financial institutions, we encourage you to reach out to your loan officers sooner rather than later. After all, you have a lot on your plate right now. Worrying about your loan payments shouldn’t be one of your concerns.
Another concern for business owners may be access to emergency funding. The Small Business Administration (SBA) has approved Economic Injury Disaster Loans for the state of Colorado (and many other states). It is important to note that these loans are done through the SBA and not through financial institutions. You can apply for a SBA Economic Injury Disaster Loan at the following website: https://disasterloan.sba.gov/ela/. These loans have a rate of 3.75% and amortizations of up to 30 years. The application process will include several SBA forms and will require your last tax return as well as a current 2020 Profit and Loss Statement and Balance Sheet.
Business owners who need assistance or consulting services can turn to the Pikes Peak Small Business Development Center (SBDC). The Pikes Peak SBDC has free one-on-one consulting with consultants who have expertise across every aspect of business, as well as free or low-cost classes on QuickBooks, marketing, funding, and more. They even have consultants who will help you apply for the SBA Economic Injury Disaster loan if you need assistance. You can learn more about the Pikes Peak SBDC on their website: www.pikespeaksbdc.org.
At the time of this writing, Congress has not yet passed an additional stimulus package that promises additional loans to small businesses through financial institutions. Additionally, the Federal Reserve has indicated that it will announce a Main Street Business Lending Program to assist medium and small-sized businesses. Both programs will complement the existing SBA resources and we will let you know the details of the programs when they are available.
As always, please give us a call if you need help with your banking services. We are wishing you good health.