- The Paycheck Protection Program has been revived, but businesses may not always qualify or be able to abide by its requirements
- Other relief is available through the federal legislation, and funding is also available at the state level and from business organizations
- Friends and family, micro-lenders, and other sources can also provide sources of income
The U.S. Small Business Administration recently released its interim rules on the Paycheck Protection Program, which will offer $284.5 billion in forgivable loans to assist businesses. While the first program aided millions of enterprises and proved popular, it also received criticism for frequently changing guidance, confusing forgiveness rules, and other issues.
The new PPP also has more limitations, and is generally targeted at small businesses that have been seriously impacted by the COVID-19 pandemic. Business owners may find that they don’t qualify for funding, or they may be reluctant to take out a loan if they don’t believe they can meet the requirements to have the balance forgiven.
Entrepreneurs should be aware of any other financing options in the new legislation that may support them. These include more funding for Economic Injury Disaster Loans, which assist businesses experiencing a temporary loss of revenue, and a grant program for arts and cultural entities such as theaters, museums, and performing arts organizations.
Funding can also be found through a variety of grant programs at the state level or from business organizations. For example, Connecticut is launching a $35 million grant program to support small businesses.
Drew Giventer, founder of Accountable Capital Corp., recently suggested several other funding avenues in an article contributed to Entrepreneur. These include loans from friends and family, microlenders, or other non-traditional lenders. Giventer also recommends other helpful financial strategies such as using a factoring service or leasing equipment rather than purchasing it.
