Unfortunately, some small businesses may not qualify for a COVID-19 relief loan because of the limited availability and eligibility requirements. Thankfully, you can apply for alternative business funding options that you can find in the article below.
Business Funding Alternative to COVID-19 Relief Loan
The U.S. Small Business Administration (SBA) is open to new applications for the Economic Injury Disaster Loan (EIDL) from businesses that qualify for the funding. The SBA processes EIDL Loan applications submitted on a first-come, first-served basis. As for the Paycheck Protection Program (PPP), it was closed on August 8, 2020, so you can no longer apply for the financing.
What about businesses that aren’t eligible for a COVID-19 relief loan? Let’s see:
- Consider applying for assistance programs or exemptions offered by your city or state aimed at providing financial impact during the existing economic crisis. On the Innovative Lending Platform Association (ILPA) site, you can find more than one state and local government assistance program exemption.
- Gift cards or certificates for future use are another option for immediate revenue.
- Don’t forget about adding new services to your business model. Now, when the move to the online space has accelerated unprecedentedly, having an online presence is a must. This means you should work on offering products online, starting a delivery service, adding products that customers are now interested in, and more.
- Apply to a reputable alternative online lender. This is the fastest and the most hassle-free way to get access to the working capital you need to overcome the existing COVID-19-related financial challenges. With secure and cheap business funding from a trustworthy provider, you can boost your profits and enlarge your customer even when facing financial hurdles on your way.
- Another way out is to create special offers concerning your products/services to incentivize your current customers so that they won’t go to your competitors. In addition, you can also offer temporary discounts and promotions.
- Taking donations is also a nice option to try. Lots of business owners have already started “Go Fund Me” campaigns.
- You can also find intrastate crowdfunding resources at The North American Securities Administrators Association (NASAA).
So, COVID-19 has caused a severe impact on the global economy. Small businesses in the U.S. and elsewhere have been hurt the most. Thankfully, there are relief loan options, as well as alternative financing solutions that you can get for your business.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their business funding solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.