What Do We Do Next?
What a month, am I right? Every day is just a new barrage of information. Things are changing and escalating daily, and it's difficult to know how to handle our personal business let alone our small businesses. This is why I sat down (via telephone, obviously) with our Small Business Development Center (SDBC) here at the Chamber. I told him, the feedback I'm getting is that people need some clear steps. With resources scattered everywhere, our small businesses are overwhelmed and wondering what to do next.
Well, here are some next steps.
The biggest issue for small businesses today is cash flow. If you currently have any debt, whether it's a line of credit or a commercial loan, contact your lender now and ask about deferment. Many lenders are allowing non-payment for a certain period of time without having any impact on your credit. However, in order to take advantage of this opportunity and hold on to the little bit of cash we still have, you have to make that call now. The balance should be reamortized once payments resume.
Which brings me to my next comment: If you currently have an existing 7(a) SBA (small business administration) loan, you can absolutely request deferment of loan payments for up to 3 months at this time. You will need to contact your lender directly to request the deferment.
And now speaking of the SBA, if you're not yet aware, Texas was recently added to the list of states eligible for SBA disaster loans. You don't have to go thru a lender to apply - just go directly to the SBA here: https://disasterloan.sba.gov/ela/
I have heard from the local business community that taking on additional debt does not feel like a solution. I hear you. At this time, grant relief has not been considered and is not available. We are keeping an ear to the ground and are sharing these very concerns.
But also, don't scoff immediately at the possibility of an SBA disaster loan during this trying time. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can't be paid because of the disaster's impact. The interest rate is 3.75% for small businesses. The interest rate for 501(c)(3) non-profits is 2.75%. These loans are offered with long-term repayments in order to keep payments affordable, up to 30 years.
The advice given to me was - apply. Apply, see what terms your business qualifies for, and if you don't want to accept the terms and take the loan, then don't.
You can reach the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.
And if are trying to pivot your business right now, or even start a new business, and want to reach out to the SBDC directly, you can reach our Senior Business Advisor Britt Krhovjak at bkrhovjak@nctc.edu.
The Denton Chamber of Commerce is here for YOU. How are you being impacted? What do you need? LET ME KNOW. We are ready to serve.
Petra Kelly
Denton Chamber of Commerce