Like so much of life these days, the Paycheck Protection Program (PPP) is unprecedented. Never before has so much money been loaned out to so many businesses so quickly. Equally astonishing is the fact that the government has agreed to forgive the loans for qualifying borrowers.
However, unprecedented also means untested, uncertain—and perhaps unfeasible. It’s no surprise that a program this big and this hastily rolled out has had numerous issues, limitations, and controversies.
The PPP Hasn’t Been P-P-Perfect
First, the PPP ran out of money. Then many lenders stopped accepting new applications. Meanwhile, numerous businesses were turned down, while others experienced administrative problems and delays in receiving their funds. And recently, the US Treasury Department’s list of organizations that received funding under the PPP has raised eyebrows and stirred confusion, leading several recipients to deny they had ever applied. Throughout it all, information about loan terms and forgiveness has remained inconsistent and unclear.
The whole thing has been messy, to say the least.
By now, the program has stabilized somewhat, and the application deadline has been extended to August 8, giving more businesses the opportunity to access much-needed economic relief during the ongoing COVID-19 crisis. However, for all the reasons laid out above, many organizations have eschewed the PPP in favor of alternative forms of funding.
If financial aid through the PPP hasn’t worked out for your business, or if you’d simply like to be aware of all of your funding options, here’s what you need to know.
Federal Assistance Isn’t Your Only Option
The PPP and the Small Business Administration’s (SBA) various loan programs (including Economic Injury Disaster Loans) shouldn’t necessarily be your first choice when seeking financial assistance for your business.
Other funding options may help you access more capital sooner, and/or provide better terms and greater flexibility. Examples include the following:
- business credit cards
- business lines of credit
- state and local assistance programs
- corporate-sponsored business grants
There’s no one perfect choice here. The ins and outs of different funding options are complex and highly dependent on a business’s region, industry, and specific organizational characteristics. Nonetheless, all are worth considering right now. If there was ever a time to think creatively about business financing, we’re living it.
Talk to your financial advisor to determine which forms of business assistance are right for you. Or the experts at inDinero are happy to walk through your options and guide you toward the best course of action. Contact them and tell 'em that ShearShare sent you!