The COVID-19 pandemic outbreak has been unkind to the global economy and business landscape. Several companies have shut down due to a lack of funds and a lost revenue stream. As small, medium, and large scale business houses have fallen victim to this, it is useful to have a business recovery plan prepared beforehand.
What does Michael Giannulis suggest for business owners?
Do you think your business is succumbing to the crisis of the pandemic? Are you feeling as though the pandemic might shut down your business operations? If so, you should follow these suggestions provided by a leading entrepreneur, Michael Giannulis.
- Communicate with suppliers, lenders, and vendors proactively
Several service providers, banks, and utility organizations have declared statements highlighting that want to work with consumers dealing with financing issues caused by COVID-19. If you think you may have problems paying your business’s bills in the upcoming months, you should interact with suppliers, lenders, and vendors to decide on your options. Some of them may even waive off fees or other payments.
- Hold on to tax payments
Have you been saving money for paying your tax? If so, you can use this money elsewhere for a while. It is essential to know that the U.S. Treasury has declared a 90 day extension for filing tax returns for 2019, so you can use this fund to pay other necessary bills that can help you survive the wave of the pandemic and save your business from shutting down.
- Opt-in for emergency loan choices
You can opt-in for a few loan choices the U.S. Small Business Administration offers. For instance, there is the SBA Economic Injury Disaster Loans. The SBA has declared that it will offer low-interest, targeted disaster recovery loans to small business firms that have been adversely affected by the current economic situation. SBA’s Economic Injury Disaster Loans enable small business owners to borrow as much as $2million for business recovery. The money can be used to clear debt payments, resolve revenue loss, and cater to payroll obligations. The SBA also provides long-term repayment plans for up to 30 years to help afford monthly payments. The SBA takes about four weeks to determine loan applications sent in by small businesses.
Last but not least, business owners can opt-in for government relief packages. In the U.S., the state, federal, and several local government agencies have been energetically working on policies for assisting small businesses and other firms affected by the virus outbreak. Currently, the federal government had sanctioned a COVID-19 relief bill that will offer substantial economic stimulus. Some of the salient points of the Coronavirus Aid, Relief, and Economic Security (CARES) Act are:
- Tax credits will help provide paid leave and allow employees to stay on the payroll all throughout the crisis.
- Provides unemployment benefits to self-employed individuals.
- Availability of forgivable loans for employers who have a steady payroll during the crisis.
There are a few municipalities and states that extend payment and filing deadlines for business firms as well. All of these remedies can help prevent a business from shutting down during the current crisis.
Michael Giannulis is a CEO, world-class copywriter, and high-end consultant for small business owners. Michael’s success story is one for the books. He was born into a household where nothing ever came easy. At a young age he developed a stutter, something that destroyed his confidence despite adopting.