Millions of businesses in the U.S. are struggling to keep their doors open during the COVID-19 pandemic. With strict social distancing restrictions to help slow the spread of this deadly virus, many consumers are staying home, and small businesses are feeling the strain. Although most small businesses have insurance to help during tough times, many policies have a specific virus-related clause that keeps them from providing any coronavirus closure coverage. It’s essential that you discuss the details of your coverage with your insurance broker to find out what protection you have during the pandemic.
If you are worried about keeping your small business open, you need to know about the various avenues of financial help that are open to you. From government grants to tax deferment and discussing your options with a professional compensation lawyer like Johnson Groninger, there are solutions to help business owners during this unprecedented time. Let’s look at a few ways that small businesses can seek COVID closure compensation.
The U.S. Small Business Administration is making Disaster Assistance Loans available to small business owners across the country. With interest rates as low as 3.75%, entrepreneurs who can’t find credit elsewhere, and 2.75% for non-profits, many businesses will be able to keep their doors open and survive until the end of the pandemic. These loans are negotiated with flexible long-term repayment options to help ease the strain of business owners.
Small business owners can also apply for the Paycheck Protection Program, which helps them to be able to continue to pay their essential employers. Check out the SBA website for all government funding options during the pandemic.
Most major credit card companies have temporarily altered their policies to help small business owners during the pandemic. Many credit companies are waiving service fees and early withdrawal fees for all businesses. Talk to your credit company about any offered services during this time and find out about renegotiating your repayment options.
The Internal Revenue Service (IRS) has announced new relief efforts to aid small business owners affected by the coronavirus pandemic. Both individuals and businesses will be granted a 90-day extension on all tax payments. Companies can also delay payments on up to $10 million in owed taxes. Small business owners will still need to file their taxes by April 15th; however, payments can be deferred until June 15th.
With a little bit of online research, small business owners can find private corporate sponsors offering relief loans during the pandemic. Huge companies like Facebook and Amazon have already announced their efforts to help small businesses with loans, payment deferment, and advertising credits.
The COVID-19 pandemic has affected billions of people worldwide, but small businesses are among the heaviest hit by the financial strain. With the future still uncertain, even as vaccines begin to be distributed, small business owners can find the help that they so desperately need through exploring these channels.
Go to your federal and state websites to investigate pandemic loan relief programs, talk to your credit company about leniency initiatives, or find a private lender to fund your business. We are all in this together, and eventually, the dedication and efforts of small business owners will help the economic world get back to normal.