Small businesses are struggling to react to the drop in customers and a restricted supply chain. It is essential to understand your cash flow situation right now and to plan multiple scenarios so that you can prepare what you will do in those situations.
Cash will be critical for almost everyone, whether for payroll or inventory. Think about what cash you’ll need to have on hand based on your scenarios. Do you have access to the cash needed in your worst case? If not, I’d reach out to your banker right away and ask what options they have for you.
The U.S. Small Business Administration (“SBA”) has also provided information on access to capital through its Economic Injury Disaster Loan Program . Another great resource as you research SBA’s options is a state by state guide where you can find your state’s Fact Sheet.
Work with your accounting team to talk through these scenarios. They’ll be a critical part of the loan approval process by providing accurate information and confidence in the data from your banker.
Don’t go it alone. We’re here to help, and it’s good to see the SBA is there for us too.
Photo by Claire Mueller on Unsplash