How to Get Funding Now That the EIDL Loan Advance is Gone
The Economic Injury Disaster Loans, or EIDL has had recent extra funding in response to the COVID pandemic. Many thousands of small businesses and non-profits flocked to this program in order to receive help during the crisis. However, the cupboard is now bare and so companies of this type now have to look elsewhere for help. Here’s some information about EIDL and the crisis, as well as where companies can look for alternative sources of capital.
COVID and the Need for Intervention
If you own or advise a business that’s having serious trouble due to COVID, you are not alone. It’s been highly common for companies to experience some financial discomfort due to COVID. This is what’s driving their need to look for options like EIDL in the first place, for example.
The need was strong enough that the government is constantly putting out aid like from PPP, EIDL Advance, and other help related to the CARES act. Many companies are in the same boat these days.
The Worst May Be Yet to Come
On top of all of this is the fact that some sources say that the virus could get even worse as winter approaches. This is due to the fact that COVID struggles more during summer months with higher temperatures. When temperatures go down, contraction rates could be worse. Also, in colder months, people tend to stay inside more.
Heated rooms due to warding off the cold also lead to dry air which creates conditions that make it easier for COVID to survive.
All of this is to say that people may have to stay home even more. They may have to spend even less due to their jobs not coming back from the bad economy and the fact that many can’t go back to work yet.
The upshot is that whatever economic woes businesses are having now don’t appear to have a lot of hope of getting better in the near future at all. Even the long-term future remains a large question mark. Some medical experts have said that a vaccine isn’t likely until at least 2021. This is according to the Center for Infectious Disease Research and policy, or CIDRAP.
A program that worked along with the basic economic injury loan program was called EIDL Advance This was a grant program that offered money that did not have to be repaid as an option alongside the traditional EIDL loans.
The free grant was calculated based on how many employees a company applying for the grant had. It offered as much as $1,000 per month with a maximum of $10,000 per application. This program had the following characteristics- it didn’t have to be repaid, you didn’t need a traditional EIDL loan for the advance, and it didn’t fully stack with the PPP loan.
EIDL Advance Funds Are Gone
Unfortunately, according to the Small Business Administration, or SBA, these funds have now all been allocated. There’s no money from the free advance available for anyone. This means that with conditions potentially worsening, the economy facing a potentially even worse economic recession than last time as a result, finding means of staying alive as a business is becoming more and more important.
In the middle of all of that, options like PPP and EIDL have completely run out, making it so that many businesses can’t even afford to pay their employees due to this extreme turn in circumstance. As a result of all of this, it’s going to be important for businesses that have solid, balanced sheets to find a means of weathering the storm.
Capital may be at an all-time low for many small businesses, and these companies will be looking to do anything they can to make sure they survive or even find ways to thrive during the pandemic. However, all of this requires capital.
Many thousands of companies were getting that capital from programs like the EIDL Advance from the government, but as these funds have dried up, it’s now past time to start looking for other potential ways of fixing the issue.
Finding Alternative Loan Opportunities
Fortunately, there are opportunities out there that could help companies to turn the tide back around. This may very well be required to make it to the future where the situation could radically improve or be different in some way. It’s important to start looking for these solutions as early as you can in order to have the best possible chance you can to make it further.
A Financing Solution: Flexible Lending Companies
Flexible lending companies like Moby Capital are interested in working with companies that have a strong, balanced sheet in order to help invest in the future. They can provide funds of up to $5 million to companies facing financial calamities of various kinds, but especially those related to COVID these days.
The government has already tried to aid companies in duress with disaster relief funds, but these are now gone. It’s time for many companies to try something else instead. Fortunately, Moby has plenty of advantages that can suit the interests of small businesses.
Advantages of Borrowing from Companies Like Moby Capital
- Plenty of Funds Available Up to $5 Million-Moby has the ability to loan up to $5 million to small businesses. This is often more than enough to help any small business survive in the current environment. In fact, with the right capital and business plan, you may even be able to thrive under the current conditions. After all, it’s not just companies that are in trouble that can benefit from capital at the moment. Small businesses that see opportunity in the changing times could potentially benefit as well.
- Speed as Fast as One Business Day-Flexible lending companies can help get funds into the hands of those who need it in a surprisingly short amount of time. In the right circumstances, companies like Moby can get funds into your hands as quickly as one business day after you apply for a loan for your company. If you have a well-balanced company that was doing well under normal circumstances, you could get the loan much quicker than you might think. This could be an important thing to do as well, considering the fact that drying up emergency funds could mean your company will lose its stellar record without more help fast.
- Flexible Funding Options- Moby, for instance, has the option to give out SMA loans, term loans, invoice factoring, business lines of credit, and merchant cash advances. That way, the team can come in and see exactly what kind of aid would most bolster your company and help to make sure it not only survives but is in a situation to do even better in the future. This future could be post-COVID, or it could even be during it. Disasters can create opportunities even more lucrative than in times of relative calm, after all.
- Easy to Navigate-It’s important to be able to move through a site to get what you want quickly so you don’t waste time. MobyCap, for example, has the button for getting funds clearly marked in green in the upper right-hand corner of the site. There’s also an “Apply Now” button on the top menu. You can then fill out your forms, get evaluated by an expert from the site, and get your funds as fast as just a single business day.
- $1 Billion of Funds Secured-It’s also important to go with a company that has a history of success. Moby Capital, for example, has secured $1 Billion in funds for clients just over a single decade.
It’s also important to get access to experts that can guide you through the process, like what Moby has. After all, companies like this one have been doing this for over 10 years. It would be wise to take advantage of their expertise.
Taking Advantage of Opportunity
The companies that act on flexible loan opportunities are going to be those that have the best chance of surviving disaster now that government aid is drying up. Plus, even more than that, these companies will also have the greatest possible chance of taking advantage of the situation.
While COVID may be closing many doors, it’s also opening new ones, potentially. Delivery companies are doing better than ever. Online sales are up, even if the overall economy may be suffering.
The companies that have access to capital right now may have a leg up on the competition as new niches and possibilities open up in a changing environment. This is worth noting as well, since not only is the situation now different than it has been in a while, it’s also constantly changing. Having the capital to deal with whatever new situation that might come up tomorrow may be just as important as handling payrolls and staying above water right now.
For more information about getting started with Moby Capital, please don’t hesitate to go ahead and contact us today.