Finding Sources of Funding Post-COVID Crisis through the SBA
With a career in business for nearly 30 years, Dominic O’Dierno serves as CEO of Amare, LLC, a consulting firm that assists start-ups with strategic planning. Dominic O’Dierno advises his clients on the myriad of options for securing funding.
For many small businesses, surviving the economic catastrophe caused by COVID has required many to not only revisit their business plan but also to draw on other sources of funding to keep their ventures afloat. The year 2020 marked one of the worst years for the economy and business in almost a decade with 92 percent of businesses reporting negative outcomes of a pandemic that forced many to either reorganize or tamp down their business model. In response to this occurrence, businesses have also had to reconsider funding options.
One of the ways to get funding through the Small Business Association (SBA), which offers a traditional loan and the Economic Injury Disaster Loan (EIDL). While the process of receiving the loan might be a hassle, it does offer one major protection in that if the business defaults, the government pays the loan back. Businesses can also get support from the SBA through the Paycheck Protection Program. This program provides businesses with funding to pay their employees during the pandemic.