READJUSTING: Managing the finances of your business in today’s economy
As a small business owner, the effects of the pandemic may have taken a tremendous toll on your financial picture. Now, as you continue down the road to recovery, you can count on Wells Fargo for the information you need to make more informed and confident decisions.
What are the benefits of developing a relationship with a banker?
One of the best perks of getting to know your banker is the ability to get help tailored to your business as your needs continue to evolve over time. Whether participating in a government loan program or deferring payments on an existing loan, having someone who knows your business and understands your goals makes all the difference. And in times of crisis a dedicated banker helps ensure you’re up to date on changes as quickly as possible, addressing your individual questions and concerns.
What are my options in terms of federal loans and grants?
There are many newly developed programs for businesses to access much needed financing. The Small Business Administration (SBA) offers many options to help businesses through COVID-19, including the Paycheck Protection Program (PPP). If you received a PPP loan, keep tabs on how you spent the funds. This will make it easier to sort out potential loan forgiveness or repayment terms when the time comes.
Other loan options offered by the SBA include Debt Relief, Express Bridge Loans, and Economic Injury Disaster Loans (EIDL) designed to help you through economic challenges. You can also review options through the Federal Reserve. Their Main Street Lending Program offers various high-dollar loans with deferred interest.
How can I access additional capital?
Our new Open for Business program supports Community Development Financial Institution (CDFI) nonprofits to provide support to small business owners who were hit hardest by the pandemic. Through this program, we’re donating $400 million in PPP processing fees to support minority-owned small businesses. CDFI’s are the fastest solution to getting funds in the hands of small businesses who need it most. Contact your local Small Business Development Center to find out more options for grants at the city and state level.
What can I do to pivot my business to increase cashflow?
You’ve most likely already made some modifications to how your business operates. We suggest identifying new revenue streams and adjusting your services based on your customers’ current needs. Consider expanding your online footprint to be more accessible, or cut unnecessary costs. It’s wise to prepare for unpredictability by staying in touch with trends that will impact your business. It’s also helpful to measure and track the effectiveness of any operational changes.
(To learn more ways we can help you stay Open For Business, visit the Wells Fargo Small Business Resource Center at: smallbusinessresources.wf.com)