|With news about the impact COVID-19 is having and the steps the Government is taking to support businesses, seemingly to change daily, we often feel the “rush” to share information. At Benetrends we will always strive to provide you with the most accurate information quickly, but we will be cautious not to communicate speculation or premature legislation. As you have seen just in the last few days, things change quickly. So, if the SBA offers new programs, we will confirm that information, decide how it best benefits our partners and then share. Below, we address some of the most pressing topics:
Funding Strategies in a Declining Stock Market: In this blog post, Dallas Kerley, President & CEO of Benetrends, addresses the best strategies to focus on in the current environment. We have recently seen many candidates putting on the brakes and deciding against moving forward with their business purchase. Often, they are making that decision because they are waiting until their stock portfolios recover from the recent selloff, or they can no longer afford to move forward due to a lack of sufficient funds to complete the transaction. Rather than sit and wait for a possible market recovery, this article outlines other alternatives.
Support for existing business owners: We have been fielding a lot of questions from our clients in regard to federal assistance. The COVID-19 pandemic has been declared eligible for SBA disaster relief. While Benetrends is your funding partner, in order to pursue assistance, you must work directly with the SBA, not with Benetrends. If you are looking for information as it relates to government programs offering assistance during the coronavirus crisis, please visit https://www.benetrends.com/sba-disaster-relief.
IMPACT for Small Businesses Act: Benetrends wrote to Senate Small Business Committee Chairman Marco Rubio (R-FL.) and Ranking Member Ben Cardin (D-MD) to express support for their legislation ensuring the Small Business Administration and its lending partners are able to provide access to capital during the Coronavirus outbreak. The legislation is titled the Immediate Measures to Protect Against COVID-19 Threats for Small Businesses Act, or IMPACT for Small Businesses Act. Notably, Chairman Rubio’s bill responds to the President’s request by including authority for $50 billion in 7(a) lending for the remainder of FY2020. It proposes several stimulus measures to be in effect for the duration of one year, including the following key provisions:
- Waives all borrower upfront guaranty fees for all borrowers, regardless of loan size
- Waives the ongoing fee for all lenders
- Increases the guarantee on all 7(a) loans to 90%
- Increases the Express maximum loan amount to $1 million from $350,000, and after 1 year, lowers the maximum loan amount to $500,000 rather than the existing $350,000.
- Gives increased flexibility to the Economic Injury Disaster Loans (EIDLs)
- Benetrends’s letter, (download a copy), applauds providing the SBA and its lending partners more resources to offer relief while handling the economic impact of the Coronavirus.
** Be on the lookout for our recorded call where I will address the impact on the current lending environment, things on the horizon, the speed-bumps we are facing, the upside (because there is one) and most common funding options in situations like this.