Small businesses are the lifeblood that keeps this country functioning. They are at the very core of every small community. Small businesses support local youth activities. They provide jobs and invest money back into the community through their taxes and by sponsoring local events. When a community thrives, it’s often due to the small businesses that local residents rely on when they need something. With everything that has happened over the last two years, the government is stepping in to offer struggling small businesses over $10 billion in working capital funds.
The Struggle Is Real
Every business struggles at some point. Seasonal businesses especially will do exceptionally well during their peak season but may experience a drastic decrease in their profits during the off-season. This is normal for many businesses and they know how to prepare for this type of cyclic activity. What’s hardest to prepare for are the unexpected events that add insult to injury. A small business may be able to make its way through a regular cycle of ups and downs but throw in an emergency situation, and all bets are off. Without a cash injection for small business, many are doomed to close.
The Pandemic Effect
When the pandemic hit in 2020, many small businesses experienced devastating losses. The inability to do business drove many of them to shut their doors within the first month never to re-open. Most could have probably been able to survive a short closure. As the pandemic wore on, it became apparent rather quickly that many were not financially prepared to be closed for a week let alone a month or more. The need for a cash injection for small business operations was needed.
Small Business Owners Are at a Disadvantage
The fact is small business owners are at a disadvantage. It’s much easier for a large business to get the funding they need because of their size. The larger a company is, the more resources it has. It is easier to show a history of substantial profit. Smaller businesses don’t always have that luxury. Their numbers are lower because they have fewer financial resources. In most cases, profits go right back into the business as working capital. The company may be profitable, but it looks like it is barely breaking even. Because the business can’t show potential profits outside of the working capital, they are often overlooked for outside funding.
Government Funded Cash Injection for Small Business
While the Small Business Administration has offered loans for many years, the guidelines that were in place posed a problem for many small business owners. With the government stepping in with the additional $10 billion in funding, small businesses, especially those owned by minorities will now have a chance to get the working capital they need. The cushion that this funding provides may mean the difference between barely getting by and being able to successfully operate their business through the leanest of times.
Access to these government-funded cash injections for small businesses will be coming in short order. As a small business owner, you do have available options right. Small Business Funding offers working capital loans up to $500,000 for companies who need that extra boost to get them back on track. Applying for these loans is easy and approval is quick. In many cases, applicants are approved in as little as 48 hours and have the funds in just a few days. Call today to find out how Small Business Funding can help your business get ahead of the game.