Every company across the nation suffered from the slowdown stemming from COVID-19. In fact, without some kind of assistance, many businesses would most likely go belly up in the current environment. As the coronavirus cases continue to rise, a greater need for business assistance exists, and luckily, more than a few resources can help businesses to survive this economic turmoil. The scare from COVID-19 comes not only from the virus itself but the economic damage that comes with it.
7(a)Program
Business loans exist for up to $5,000,000 to help companies get back on their feet. The loan classifies as an all-inclusive loan program, which means that multiple loans get combined into a single loan. This makes it easier for companies to see what they owe on loan, and they can pay it all under a single payment plan, rather than having to pay for everything all at different times.
Some of the uses for this loan include:
- Expansion or renovation
- Working capital
- Purchase of buildings and land
- Leasehold improvements
- Refinancing debt
Community Advantage
Considered as a community pilot loan program, this loan purposes itself toward small businesses in the communities that are underserved. Entrepreneurs can get a loan of up to $250,000. People curious about how it works, this loan’s uses have the same types of uses as with the 7(a) program. They were meant for small businesses in need because COVID-19 has wreaked incredible harm to economies across the world.
504
Intended as a loan program that will nurture economic growth, the 504 loan program will create more jobs, and it will help to retain the current jobs because it helps with businesses that struggle with staying afloat during this time of economic hardship. They have, however, limited the use of the proceeds of this loan to the certain refinancing of fixed assets and acquisition of assets.
During the COVID-19 crisis, many businesses have suffered harm from the economic slowdown, and it has left many people questioning their livelihoods. Luckily, many resources have come together as a way to reverse some of the economic damage and to protect further economic damage from happening. In times like this, everyone has to work together.