A way forward for businesses – How to deal with the economic crunch of the pandemic

It might take several years for us to fully get an idea of the economic crunch that resulted due to the coronavirus pandemic. Amidst all this, one thing that is clear is that most small and medium-sized businesses are facing an existential crisis. Businesses that have less than 500 workers account for 49% of jobs in America and 44.5% GDP of the nation. 

Due to the staggering disruptions thrown in by the coronavirus pandemic, businesses have shut down temporarily. Apart from filing for an ERC claim, what are the other ways out for the employers? Keep reading. 

• Seek federal help

In order to fight against the economic fallout from the pandemic, the federal government has offered special loans for small business owners. The SBA has designed a plan for assisting small businesses that were affected by coronavirus by giving them reasonable loan options. The PPP or the Paycheck Protection Program was introduced as a part of the coronavirus aid package that amounted to $2 trillion. 

• Local and state resources

Covid-19 relief for businesses varies as per cities, states, and countries. For example, New York City has introduced the Employee Retention Grant Program to let employers retain their employees despite having faced decreased revenue. On the other hand, Washington State offers no-interest loans for small businesses that are facing financial hardship due to the pandemic. 

• Mercy from credit card lending companies

There are several credit card companies that have introduced statements where they have announced that they will be giving relief to small businesses. The credit card companies do this by waiving service fees for a month and providing other forms of disaster relief assistance for small businesses. Hence, credit card companies will become more lenient about the service fees charged.

• Crowdfunding help to small businesses

Raising funds for coronavirus expenses can be a good alternative when your business is struggling with its finances due to the pandemic. While loans, grants, and other stimulus measures can assist businesses, it may take weeks and months to receive this funding. However, with crowdfunding, you can receive your financial assistance on an emergency basis.

Therefore, if you’re still not aware of the funding alternatives to opt for your business, you should keep in mind all the above-listed financing options. It is important to explore the options before giving up on your entrepreneurship dreams.