One of the business consulting services that Cox eLearning Consultants, LLC (COX) provides to learning companies is fundraising. In light of the COVID-19 pandemic’s disastrous economic impact, we recommend that you consider these three sources of government-backed short-term loans. All three programs for financial assistance are limited time offers, since they are driven specifically by the COVID economic shut-down and the disaster relief funded by the $349B CARES act passed by Congress. All three offer extremely favorable terms with regard to:
- Low interest rates
- Relatively quick application process
- Liberal approval criteria
- Potential forgiveness of some or all of the loan!!
Your Business Survival May Depend on It
U.S. Federal Loans
Two incredible federal loan programs are available to small businesses. You can qualify for both, so apply for BOTH! The funds are disbursed either directly by the SBA (Small Business Administration) or through lenders with SBA guarantees.
Check the SBA website.
- The COVID-19 Economic Injury Disaster Loan (EIDL)
$10,000 SBA direct loan – DO THIS FIRST!
This loan advance is provided directly to your business to remedy the loss of revenue you’re experiencing as a result of the COVID-related business interruption. The SBA portrays this as liberal for approvals. And applying through the online form is fast…it should take you less than one hour. This loan “advance” will not have to be repaid!
- The Paycheck Protection Program (PPP)
The PPP is what you’ve been hearing about in the news. This loan supports your business while you support your employees by keeping them on payroll. Noteworthy items:
- All the features described above – low interest, easier-than-normal approval
- Potential loan forgiveness (some or all, with certain requirements)
- Funds can be used for some overhead expenses in addition to payroll costs
- Processed through an SBA-certified lender
Learn and apply here.
View a chart comparing the details of these federal programs.
Courtesy of the National Federation of Independent Business (NFIB)
State Disaster Loans
In addition to the federal government, many states are implementing their own recovery plans that include attractive loans. Like the federal government programs, these loans are generally low interest, easily approved, with potential for forgiveness of part or all of the loan. Some states are still in the process of rolling this out. California, where my business is located, has launched its program.
Check this article from Entrepreneur for your state’s programs and links.
Additional Sources of Grants and Loans
Your business may also qualify for grant programs from city and county governments. In addition, corporations such as Verizon, Google, Facebook, and others are offering grants to help you stay connected with customers through digital advertising.
This online resource from Inc. Magazine will be updated with new information as programs are announced.
COX Financial & Strategic Advisory
Cox eLearning Consultants can provide you with advice and assistance with raising funds – loans, venture capital, private debt – as part of our strategic business advisory services.
Our goal is to make your business successful – whether through outstanding marketing programs to generate new sales or with business consulting to help you run a smarter business.
Our clients find that our business consulting does not cost money – it saves money!
Strategic Business Advisory
for Learning Solution Providers
Public & Private Funding
Merger, Acquisition, & Alliances
At this critical moment in the global economy, COX offers unique expertise in the learning industry with consulting to steer your financial ship through the COVID-19 storm.
COX “speaks your language”