Funding Your Business In Trouble Times
The federal and state governments are providing some very good temporary relief programs that are designed to preserve your cash during the coronavirus pandemic. These programs, however, offer only short-term relief. How do you plan on surviving over the long term? The good news is that you don't have to go it alone.
The Small Business Administration (SBA) has been around since 1953. It is a federal agency whose purpose is to help small businesses get started and survive for the long term. The SBA has a business guide that walks you through what you need to do to get new funding for your business. This guide can be found on its website. https://www.sba.gov/business-guide/grow-your-business/get-more-funding.
SCORE is a non-profit organization that works in partnership with the SBA. It can provide you with volunteer mentors to help guide you through these difficult times. Its website is found at: https://www.score.org/.
The SBA provides several loan programs that may help you. Review its website. https://www.sba.gov/funding-programs/loans. Your local bankers are authorized to make SBA loans. The SBA guarantees repayment of a substantial portion of those loans to get your banker to make the loans. The loans can be for working capital, equipment purchases or real estate purchases and improvements. The loans can be made to new and existing businesses.
I was a bank examiner in the Midwest. With a drought one year and a flood in another, many farmers saved their businesses by using the SBA programs. Like many businesses today, a disaster wiped out an entire year's income for these farmers and yet they were able to make it through the tough times with the help of the SBA and their local banker.
The SBA also has investor programs. The SBA provides loans to privately-owned small business investment companies (SBICs). The SBICs invest in your business. Review the details on the SBA website. https://www.sba.gov/funding-programs/investment-capital.
The Utah Small Business Development Centers (SBDC) and Utah Business Resource Centers (BRC) have training, tools, and access to consultants to help business owners succeed in starting, growing and transitioning their businesses. With free, confidential consultation and free or low-cost training, Utah's SBDC Network can help you. The certified business consultants assist business owners at any stage of their business. The SBDC is funded in part by the U.S. Small Business Administration (SBA), the Utah State legislature, and hosting state universities and colleges.
The SBDC can help when you need assistance to:
- Make actionable plans to get started
- Assess your current operational needs
- Get ready to grow your market
- Prepare for funding to accelerate your business
- Get ready to transition out of your business
The SBDC offers workshops, online training, and confidential one-to-one consultation. Its website is found at: https://utahsbdc.org/. The BRC information is found at: https://business.utah.gov/brc/. The two centers work in partnership.