Just a few weeks ago, companies that received funding during the first tranche of the P3 loan program were considered lucky. But now, many of these businesses have reached the end of their loans, and business is still not back to normal.
There are several reasons why the loan money may not have been enough:
- Full or partial closures continue in parts of the country, preventing businesses from rebounding. Even though experts have warned us that COVID-19 will be with us for a while, the closures and their economic impact are lasting longer than expected.
- States that have reopened have seen a dramatic increase in the number of COVID-19 infections. While some customers are happy to return to their pre-closing habits, regardless of the growing number of cases, others are making the decision to stay in their homes a little longer. This slows the rebound that many customers counted on when their states allowed businesses to reopen.
- Many business owners who received funding during the initial roll-out of the PPP loan program have made spending decisions based on the guidelines that all PPP funds should be used over an 8 week period in order to benefit. a loan forgiveness. Those guidelines have since changed to give loan recipients 24 weeks to use the funds, but not before many business owners have spent the bulk of their loan money.
Whatever the reason, you undoubtedly have clients who are worried about what to do now that their loan money is almost depleted. Here are four things you can do to help them survive – and thrive – now.
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