Missed out on federal assistance? Here are four alternative financing solutions to tap into right now.
The Small Business Administration’s Paycheck Protection Program (PPP) felt like a first-round knockout. Corporations beat SMBs to the punch, depleting the $350 billion program in less than two weeks. While the second wave of PPP funding is underway, many small business owners are left wondering what to do now, especially if history repeats itself. Ready for plan b? We’ve rounded up a list of coronavirus relief programs and cash flow tools to help keep your cash flowing.
- Traditional SBA Loans
The Paycheck Protection Program (PPP) isn’t the only resource the Small Business Administration offers. Standard 7(a) loans of up to $5 million are available through the SBA’s network of partner banks and lenders. These loans can translate into working capital, construction, debt refinancing, and more. If qualifying for a 7(a) loan seems unlikely because your company is relatively small and new, consider an SBA microloan valued up to $50,000.
- Corporate-Sponsored Relief
In response to the coronavirus, Facebook has partnered up with the mentorship platform Ureeka to offer $100 million in cash grants and ad credits. Only companies with 50 employees or less are eligible and can use the aid towards payroll, rent, and operation costs. It’s also worth noting that Facebook recently launched a resource hub catering to small businesses. Amazon has launched a relief fund to support neighborhood businesses in Seattle and Bellevue.
Here are some other corporate resources to look into:
- Google Ad credits for future ad spend
- Spanx’s The Red Backpack Fund is giving female entrepreneurs in the U.S. $5,000 grants
- Yelp is waiving advertising, product, and service fees for restaurant and nightlife businesses
- Verizon is investing in small business grants, apply here.
- Receivables Financing
Right now, fast cash can’t seem to come fast enough. Enter invoice selling. Crowdz’s innovative invoice auction and marketplace platform allows SMBs to unlock cash trapped in unpaid invoices. Multiple funders (each one pre-vetted) bid on your accounts receivables, giving you the chance to lock in the most competitive rate. This route is especially advantageous for small companies struggling to qualify for other relief funds because eligibility depends on their client. You’ll be stunned by just how quickly the cash appears in your books.
- State And City Support
Local governments are stepping up with SMB assistance programs of their own. Loan and grant opportunities, requirements, and details vary from state to state, so look specifically at initiatives in your area when trying to decide if you qualify—but don’t stop there. Some regions are also subsidizing wages of new hires, launching business competitions with cash prizes, and providing access to financial experts.
If you are still looking for a PPP loan, try a lender approved by the SBA like MBE Capital partners that specializes in capital products for small and diverse businesses.