Although the economy has stabilized and many businesses have resumed normal operations, the pandemic’s effects still linger for countless small- and medium-sized business owners. Businesses of all kinds continue to face erratic revenue streams due to unpredictable fluctuations in COVID-19 cases, supply chain disruptions, labor market challenges, and inflation concerns.
It’s a brave new world for business owners, and one that leaves many of them in search of funding to stabilize their operations and stay afloat. Unfortunately, extra federal funding allocated during the throes of the pandemic has largely dried up. After disbursing more than $800 billion in federal loans, the Paycheck Protection Program (PPP), along with many other pandemic-related programs, came to a conclusion in 2021.
Where does that leave all the businesses that still need help? If you’re one of them, are you hung out to dry? Thankfully, no. If you’re still struggling in a post-pandemic market, there are plenty of loan options that can help you find your footing. Whether you’re hoping to pivot to serve a new market, finance the purchase of a major real estate asset, or just keep your doors open until the aftershocks of the pandemic subside, here’s a look at a few funding opportunities you should consider.
PPP Loan Forgiveness
If you did receive PPP funds at any time before the program expired, you may be eligible for full PPP loan forgiveness. Removing debt from your books is a great way to free up cash flow without taking on additional liabilities, so this strategy should definitely be the first place to start. Eligibility will vary based on when you received your PPP loan, which either had an eight- or 24-week period in which you had to use all the funds. You had 10 months from the day that period ended to submit your application for PPP loan forgiveness. So, if you received a loan with a 24-week usage period on May 1, 2021, you would have until August 16, 2022, to apply for loan forgiveness. Additionally, you’ll have to meet the following criteria to qualify:- You didn’t cut staff or wages.
- You spend the loan proceeds on payroll costs and other eligible expenses.
- You spent at least 60% of the proceeds on payroll.