“In the midst of chaos there is also opportunity” – Sun Tzu
The Alternative Business Finance Industry has a lot of question marks present moment. Obviously this is relative to the disaster and chaos impacted by the Coronovirus COVID-19. While there is a lot of question marks there is certainly no shortage of opinions. Some based on science, others based on politics, some pessimistic and other opinions formulated by those maintaining a positive outlook. This optimistic attitude and outlook is one we share. At Lead Tycoons, we have to focus on our task at hand which is connecting small business owners with business finance professionals (generating leads for our members). We believe that Small Business is the backbone of the United States and now more than ever we want to help these business owners gain access to Merchant Financing Professionals. In just recent days we have noticed a slight increase of inquiries of business owners expressing interest in working capital solutions. While this brief period doesn’t show metrics that prove a trend, this simply supports that business owners are worried and also still running their business as usual. Some businesses will actually get a spike in business. Some will go out of business, and some may take on some debt. So while we focus on connecting them to you as a business loan broker, we need you to step up and commit to helping these owners all of the way through.
The Small Business Administration will be providing up to $2 Million Dollars to Small Businesses across the United States. Below are the steps for Small Business Owners to gain access to this facility. I don’t know about you – but these requirements seem quite strenuous. Not to mention, the traditional SBA Loan Timeline can often take 30 to 90 Days according to Merchant Maverick.
We believe that this chaotic period will be turned around in a matter of a few months or sooner. In the mean time it is important to take a breath, and in your business loan broker business – try to maintain the momentum you had before this pandemic happened. Being in business is always about the long game. Your business will have the presence and reputation based upon the challenges you have been able to overcome and the solutions and value you have been able to provide people during periods of uncertainty. This means keeping engaged with your customer base. Pick up the phone and call some of your current and former clients. See if they need your help. Sometimes its just conversing with them as their advocate or consultant to provide them with some comfort. If you as a business loan broker plan to be in this industry for the long haul – right now is the perfect opportunity to prove it.
The Process for Accessing SBA’s Coronavirus (COVID-19) Disaster Relief Lending
- The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
- Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
- SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.
- Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
We will be dialed in with all hands on deck. We will continue to run our initiatives as usual. We are on a mission to help these small business owners as much as we are in providing lead generation services to business loan brokers. If you are serious about what you do as a merchant financing professional, it behooves you to contact us now so we can help connect you with these owners who need your help.