The Paycheck Protection Program has been created to assist small businesses during this unprecedented time. The SBA PPP program is only a part of the CARES Federal Stimulus package, which works to counteract the economic downturn related to the COVID-19 pandemic. Recently, the SBA PPP has run into several challenges while dealing with the delivery of funding.
Small and medium-sized businesses have historically had challenging relationships with traditional lenders. When these business owners are in need of more cash flow, they are the least likely to be approved.
If you’re a new business owner you’re going to find it difficult to obtain a traditional loan from a bank. In most cases, any of the following could prevent you from getting a loan:
You’ve been in business for less than two years
You have a credit score below 640
You want to borrow less than 250,000
The good news is that technology in the financial sector is revolutionizing the way lending is done and big banks are no longer the only option for SMB loans. Alternative financing in the U.S has tripled in size from 2014 ($11 billion) to 2016 ($34 billion)*:
In the second part of our 4-part series, we are focusing on how to prepare for and withstand a downturn in your business. The strategies below are designed to help you withstand business, industry or economic changes while increasing safety. Our recommendations are focused on proactive measures you can take to prepare your business for the future.
Annual business planning is one of the most important things that a business owner or CEO must do. It sets the strategy, the goals and determines the tactics for the following year.
Of course, there is a lot to consider in terms of where your business has been and where you are headed. It’s important to be organized and stay focused because how you plan often sets the tone for your business. Here are 7 key steps for an efficient planning process.