TWO FACEBOOK LIVE EVENTS
Please join me for one of two Facebook Live events this week
Tuesday 1 pm EDT/10 am PDT: my own Facebook Live
Update on funding sources and tips for long-term business survival. Go here to join or to watch after the event.
Tuesday 5 pm EDT/2 pm PDT: Facebook Live with LocalIQ
“Retaining & Gaining Customers in Uncertain Times.” Go here to join.
And if someone forwarded you this newsletter, you should sign up here.
PPP AND EIDL UPDATE
As you are probably aware, the funds for both the $349 billion Paycheck Protection Plan (PPP) and the Emergency Injury Disaster Loan Program (EIDL) are out of money. But it looks as if more money is on the way. Congress is likely to vote additional funds early this week. Republicans look as if they’ve finally agreed to Democrats’ insistence that a percent of the PPP funds be set aside for community banks to help ensure that smaller businesses and rural and women-owned and minority-owned businesses have better access to the funds, since a huge chunk of the original “small business” funds were snapped up by large corporations.
But the problems in the PPP do not look like they’ll be addressed. It will still be confusing to apply, the funds are not nearly sufficient for small businesses’ needs, the money can’t be used for many critical expenses, and the “forgiveness” requirements may be hard to meet. I do not believe those problems will be rectified in this bill—just that there will be more funds.
Remember: the new PPP funds will also be snapped up quickly. So be sure to act fast and stay on top of things if you haven’t received your funds already. Reconsider the EIDL if you haven’t applied already. Yes, the loan is not forgivable, but it may be the lifeline you need—at a low 3.75% interest rate (2.75% for non-profits).
Remember sole proprietors, self-employed are eligible for both the PPP and EIDL.
Here’s what you need to do:
- Open these emails—I’ll keep you up-to-date.
- Keep watching your bank to see if they’ve re-opened applications for the PPP.
- If they’re taking applications, apply even if they state they are out of money!
- Look for smaller, community banks for the PPP. Smaller businesses have reported to me faster success at these smaller banks.
- Keep checking the SBA to see if they’ve re-opened applications for the EIDL.
Fortunately, the new bill looks as if it will also include money to expand testing for the coronavirus. Until there is a vaccine, testing is the only tool to increase consumers’ confidence that it will be safe to get out and patronize businesses again and actually open up the economy, regardless of any government edicts to open up. I’ve spoken with people in the salon and restaurant industries, and they do not believe customers will return until their health concerns are addressed. Testing is the way to do that.
My USAToday column this week will look at “Where did the money go?”
SMALL BUSINESS SURVIVAL TIP: ASSESS YOUR ASSETS
As you grapple with how to survive in this vastly changed economy, one of the first steps is to take a clear-eyed view of your assets. I’m not just talking about money—I’m referring to every resource you have built up in your business that you might find a way to leverage now.
Challenge yourself to think about new ways you can use those assets—whether it’s finding a way to put your “brand” on a product you can sell now and deliver, or selling your “knowledge” online, or stepping up your email marketing.
Sit down and make a list: What are your assets?
- Your brand
- Your mailing list
- Your social media following
- Your inventory
- Your knowledge
- Your customers’ loyalty
- Your vendor relationships
- Your reserve funds
- Your credit worthiness and credit facility
- Your bank relationship
- Your team’s strengths and capabilities
- Your contractors’ strengths and capabilities
- Your referral sources
I will discuss all this further during my Facebook Live session—Tuesday, April 21 at 1pm EDT/10am PDT—and future Facebook Live sessions. Go here to join or to watch later. Learn more in future newsletter updates as well. Sign up here if you are not already on my mailing list.
Stay well. Stay home. Stay in business.
Copyright Rhonda Abrams, 2020
