On the fence about accessing funding?
In the current environment, there’s probably not a better time for businesses to look at getting help in order to ensure that they can maintain business operations. Regardless of whether the economy will be re-opened soon, the impact of the closures will be far-reaching. Businesses that want to succeed will find themselves needing to do things differently to regain the foothold they once had in their markets.
What kind of funding is available for small businesses?
The most popular program available right now is the Payroll Protection Program. The COVID-19 pandemic has impacted all businesses, regardless of whether they have been forced to close.
This Small Business Administration program was created to protect jobs; for companies who use at least 75% of the money for payroll, and maintain pre-Coronoavirus staffing levels, the loan will be forgiven in full! However, regardless of how funds are used, nothing will have to be paid for six months, and then, if used for non-payroll purposes, a low interest rate of 1% will be applied.
All businesses which employ less than 500 people can apply for the PPP program. Retail shops, bars and restaurants, and other businesses that have been ordered to close are eligible. Other businesses (consultants, realtors, investment professionals, insurance providers and more) who are considered essential, or were able to stay open by working virtually and have experienced dramatic shifts in their operations can also apply.
Additionally, the SBA is also offering an Economic Disaster Injury Loans. These loans are set up more like traditional SBA loans, and will require money to be paid back over time. There are some key differences…marketing plans and business plans may not be required for the applications to be fully processed, and the interest rates are currently capped at 3.75%.
And of course, traditional funding options, both through the SBA and through other lenders, are still available for businesses to take advantage of.
Things to Consider
Some reports in some areas around the US make it seem like we are out of the woods when it comes to the shock that the COVID-19 had to our economy. Although this may be true to some extent, the shockwaves will be rippling throughout the market, and will continue to affect businesses for some time to come.
Undoubtedly, the companies that will survive are those that have two things in place:
- They need to ensure that they have enough funding to withstand the long-term potential downturn
- They need to have a solid plan for re-emerging as a player within their market. In some cases, this may require changes to products offered, modifications to operations and ways of doing business and other fundamental business changes. But in all cases, a solid plan will include a marketing plan that is clearly defined and fully funded.
How can we help?
At Platinum Passports Marketing, we can help you in a few ways.
As consultants, we have long been involved in helping clients secure funding for their businesses. Even in the best of times, we see companies launching with virtually no marketing budget, which means that even if they have the PERFECT product or service, they can’t reach people to tell them about it. Traditionally, in order to secure a loan, businesses need a marketing plan — and for good reason.
A marketing plan is the blueprint to success. It ensures that the business owner has thought through and established a path to make sure that they are communicating with the right people in the right media to build interest in what they have to offer.
Marketing is an investment; if done properly, companies will see a return, especially once we are able to calculate customer acquisition costs. But in order to develop and implement a healthy marketing plan, we need to establish a healthy marketing budget that is sustainable over a period of time.
But again, once that costs are optimized, we can continue to see Return on Investment on an ongoing basis, with proper business growth that allows our clients to recoup the original investment cost AND make profits.
- Help you create and implement a solid marketing plan for your business
- We can help you find ways to fund that plan, through the SBA programs we described above, as well as through lenders that we have established relationships over the years, AND/OR offering in-house financing options on services that we offer.
To learn more about how we can help you ensure that your business emerges from the current economic crisis on solid footing, please contact Platinum Passports Marketing