As a small business owner tackling a major economic crisis for the first time, you may have many questions about what you can do to preserve your business and make sure your employees receive their paychecks.
One good piece of information is that health and government officials have been working to provide support through the Economic Injury Disaster Loan Program. This program is designed to provide low-interest loans to businesses that are affected by sudden changes in the economy. The program provides up to $2 million in working capital loans that will help sustain businesses until they can overcome their losses following the resolution of business closures in the United States.
While taking out a loan with no idea about how the future economy will be is potentially frightening, it could be a way to help you stay afloat until other options are available. You can use this kind of loan for anything from machinery and equipment to covering the cost of your business’s rent or personal property.
How do you know if taking out a loan is right for you?
These low-interest loans are beneficial if you want to continue to keep your business running or operational, need to pay for rent or other necessities or need to cover paychecks. However, they aren’t right for everyone in every circumstance. You may want to talk to your business attorney, accountant and others involved with your business to decide if taking out a loan through the government is right for you during this unusual time.