COVID-19 Small Business Turmoil
April 20, 2020
Most small businesses are desperate for funding to meet their cash needs, with some of the cash relief programs delayed in dispersing funds. To say the least, these are very trying times for small business owners and their employees. The ASU SBDC has been working very hard assisting any small business that contacts us. We have also been assisting many bankers and some CPAs, helping them understand the various SBA relief programs, especially related to the CARES Act. We wanted to remind everyone that the SBDC is here to assist small businesses in any way we can, especially with the cash relief programs, the direct online SBA EIDL and the SBA PPP loans through your local lender. We are not the SBA, although we are one of SBA’s resource partners. We are all working, either in the office or remotely. Call 325-942-2098 or email firstname.lastname@example.org.
At the time of writing this article, the SBA EIDL loans direct from the SBA and its corresponding cash advance program have just begun to be dispersed, which is good news for those who have applied. The SBA asks everyone to be patient as it is hard at work getting the funds out. However, we have heard that the approved EIDL funds may have a lower dollar cap per business than previously stated and that the Emergency Advance related to the EIDL will be $1000 per employee.
We also hear both the SBA EIDL and SBA PPP programs are currently out of funds and their corresponding portals are closed. We are waiting to see like everyone else if Congress will quickly add more funds to these programs. We are hopeful they will.
As this article is written, state and local officials and public health officials are deliberating when to reopen the economy, at least parts of it with corresponding mitigation recommendations. To be ready for reopening, the local San Angelo economic development partners are working on a small business recovery plan to assist small businesses in the process of recovery. The partners include the ASU Small Business Development Center, City of San Angelo Development Corporation, the San Angelo Chamber of Commerce, Concho Valley Work Force Development Board, the Concho Valley Council of Governments, Downtown San Angelo Inc. and others. The partners are busy working on all aspects of the plan and full details will be coming out soon. Some aspects of the recovery plan will include funding sources, financial analysis, business model review, marketing, mentoring, networking, and more.
The local economic development partnership has been working together closely for years and we hope the community will greatly benefit because of it during this crisis.
“Business Tips” was written by Dave Erickson, Director and Certified Business Advisor, of Angelo State University’s Small Business Development Center. For more information on the topic of this article or the services of the ASU · SBDC, contact him at David.Erickson@angelo.edu.