Coronavirus Small Business Help: Lessons from Financial Advisors Regarding PPP Loans
As small business owners started looking for emergency advances by the federal government, the financial advisors, on the other hand, helped the customers by applying for similar aid to support their practices. Benjamin Brandt, who is a certified financial planner, said that if the situation persists for more than six months, while the revenue and market will be down, he will make to keep full business.
That is why he picked Cornerstone Bank, a neighborhood money lender, and got a PPP advance of $40,000- two months of finance for himself and his other two workers. He needed to secure their future even if he didn’t need the loan at this instance. The following are the three bits of advice from financial advisors if you find yourself in a similar situation.
Evaluate your choices
Although PPP is currently the most popular loan program, autonomous advisors and their organizations might be qualified for other more feasible options too.
Many employers have an approach to numerous refundable tax credits, containing worker retention credit and credits for paid family or sick leave- accessible through coronavirus relief program. Keep in mind that you can’t apply for the PPP if you have taken the employee retention package.
Borrow through local banks
If you make up your mind and move towards applying for the PPP loan, it helps if you know your local bank representative. A banker whom you are acquaintance with or have a simple banking relation can help you, and your accountant smoothens the document-gathering process. Obtaining funds through the local bank is advised by almost every financial advisor.
Backup your funds
Similarly, as advisors remind the customers to save money in the case of any crisis, they also need to secure funding after all of their other options have been exhausted. Money put aside in a safe place, in addition to a credit extension that is set up early, could be a backup in the time of crisis.
It may be an ideal opportunity to review your productivity as well as profitability along with stress testing your business to perceive how you would deal with a drop off in income.
Organizations should go for a half net revenue and have a colossal amount of cash put in a safe spot as customers rely on financial organizations on maintaining a lucrative business.
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