The COVID-19 vaccines have started rolling out. Most of these vaccines are designed to help lessen the fatalities in the fight against COVID-19. With these vaccines, people will at least have a fighting chance—they’ll be able to fight off the virus more effectively.
The problem here, though, is that businesses are still struggling against the effects of the coronavirus on the economy. The American Rescue Plan Act was supposed to act the same way the COVID-19 vaccines have been helping people become stronger against COVID-19. There are other mechanisms that businesses have turned to as well. As for people, there are mortgage loans and other forms of finance they could take out.
Having a steady source of income is just as important as not losing your health. If you’re having troubles with your financial situation, or if you’re a business owner whose business is in danger of closing, here are ways that you can take on a financial ‘shot in the arm.’
The Paycheck Protection Program
If you’re a small business that opened up only before the pandemic struck, you’re in a world of trouble. Sadly, there wasn’t a sure way to predict that the coronavirus pandemic would happen. Still, there are strategies for you to keep your business despite financial difficulties.
The Small Business Administration has created a package designed to help small businesses operate. It’s called the Paycheck Protection Program and, more than just a payroll assistance program, it’s also designed to help businesses, whether they have some employees or none at all.
Businesses that also received a profit or loss form from the IRS can totally take advantage of the loan. All it takes is to get the correct loan amount using the Schedule C (profit or loss form from the IRS) form.
The Economic Injury Disaster Loan
Just like the virus, having negative income generation on your business is bad. The EIDL is designed to help small businesses, as well as nonprofits, bear the loss generated by the lockdowns.
The name speaks for itself; it’s like a financial vaccine to help the business fight off the effects of the pandemic lockdowns on finances. It can be used for paying off financial obligations or the costs of doing business. These are things that a highly profitable business would’ve been able to pay without the pandemic.
It’s not a forgivable loan in terms of paying off, but it’s still one of the best choices for a business if it’s looking to take on loans to pay off debts.
Choosing the Right Loans
There are other ways of helping your business stay afloat according to its needs. Benjamin Vann, CEO of Impact Ventures, said that the best way entrepreneurs saw their business’ salvation was through different conventional forms of funding.
These social media enterprises relied on equity, grants, and taking on smart debts to keep their companies ‘healthy’ during the pandemic. Vann, whose company helps people manage their finances correctly, said that taking on loans doesn’t have to simply be for solving the problem of income source. It comes down to the goals an owner or CEO has for their company.
Government Stimulus Packages
If you have no hope in the form of conventional sources of income, you’d be best served by relying on the government. At the start of the coronavirus, the government helped the economy and struggling businesses through stimulus packages.
The plan involved a $1 trillion budget and also included direct payments to American taxpayers, based on their income and how many members of the family were there. It would also help pay for the expenses of a business, including paying off their employees. Interestingly enough, it also covered the travel industry, as well as other affected companies and businesses both big and small.
Some companies closed down without being able to pay their employees, but the government covered that for them. Depending on the employee, they may receive relief if they belong to specific categories like being paid by the hour or receiving a monthly salary.
An employee that has a short-term disability also receives medical leave benefits if they cannot work. It all depends on the company policy, but this will also be covered by stimulus packages. Of course, depending on the policy, an employee may or may not be covered if they get sick with the virus.
A lot of businesses didn’t make it out of the wilderness that was the first onset of the virus. If you’re one of the open businesses after all this time, you should consider yourself very lucky.