Millions in loan assistance could be available to D-FW small businesses feeling coronavirus impact - The Dallas Morning News

The Small Business Administration says it will offer small businesses up to $2 million in loans intended to help cover losses in revenue companies face as the coronavirus pandemic bears down on the U.S.

“Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world," SBA administrator Jovita Carranza said in a statement this week.

The SBA said it’s working with state governors who have to provide the low-interest disaster recovery loans for small businesses and private, nonprofit organizations. The agency will issue loans under an Economic Injury Disaster Loan declaration if requested by the governors.

The loans will carry an interest rate of 3.75% for small businesses without credit available and 2.75% for nonprofits. They can be used to cover payroll, fixed debt, accounts payable and other bills.

Texas Gov. Greg Abbott declared a statewide disaster for all counties in Texas Friday afternoon during a press conference, but that doesn’t automatically allow the SBA to disburse disaster relief loans, the agency said.

Instead, the SBA is working with the state of Texas to identify small businesses in the state to make the case that the relief is needed. At least five small businesses must have suffered “substantial economic injury in a disaster area” for the state to make the loans available.

Deep Ellum-based Rakkasan Tea Co. CEO Brandon Friedman said a low-interest, government-backed loan could make all the difference for a small business like his. Friedman said his tea business, which is mostly focused on online sales, is already seeing slower sales over the past week.

“There needs to be an immediate infusion of cash somewhere,” said Friedman, “whether it’s to small business owners or whether it’s directly to people. Because paychecks are stopping. People are not able to go to work.”

But Friedman wonders whether the SBA can disburse loans in a timely enough manner to be of use to small businesses.

“The issue for young, small businesses like ours is that we don’t have a lot of cushion,” said Friedman. “We’re still very dependent on continuous sales. And we’ve got to make payroll, we’ve got to pay the rent and things like that every month. And those expenses don’t stop. So if our sales do stop, it’s a major problem.”

The SBA told The Dallas Morning News that it works to process applications “as quickly as possible” and that loan processing typically takes two to three weeks, with disbursement following within a few days of receiving the signed loan closing documents.

Some small D-FW businesses say they’re trying to evolve their business strategies so that they don’t reach a point where they can’t support employees.

Jake’s Burgers and Beer VP Kendra Shier said her restaurants are taking every precaution possible as D-FW customers likely begin taking measures to distance themselves to avoid spreading coronavirus. Their hundreds of hourly employees rely heavily on tips for income.

“We anticipate a slowdown, so we’re making sure all avenues of revenue are open,” said Shier. “We have one local, amazingly generous owner, but even he couldn’t sustain support for 500-plus hourlies and 30-plus salaried managers."

A complete shutdown would be devastating for the small restaurant chain, she added. The company sent a letter this week telling employees that they will not be allowed to work if they’re feeling the slightest illness, but they will be able to make shifts up without penalty.

Jake’s has instituted a new online ordering and curbside pickup system to accommodate people who don’t feel comfortable visiting restaurants.

“Understandably our focus is staying open and providing a safe, sanitary and social experience for our guests,” Shier said.

Let's block ads! (Why?)

"assistance" - Google News
March 14, 2020 at 03:55AM
https://ift.tt/2TO9th7

Millions in loan assistance could be available to D-FW small businesses feeling coronavirus impact - The Dallas Morning News
"assistance" - Google News
https://ift.tt/2Ne4zX9
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Bagikan Berita Ini