Five Resources for Businesses Struggling During Covid-19
Many businesses are struggling as the coronavirus continues to change the way Americans work, shop, and conduct business. Small businesses can be especially hit hard as they may not have the resources to survive an extended shutdown or downturn in business revenues. A Maryland business attorney can help identify resources and explain various programs aimed at helping struggling businesses recover after COVID-19 or another crisis.
Five Resources to Help Struggling Businesses
1. Small Business Administration Loans
The Small Business Administration (SBA) has a variety of loan programs for small businesses. However, there are special COVID-19 relief options and resources specifically designed to aid struggling businesses that meet the specifications of a small business. Some programs are designed to help small businesses continue paying employees or provide benefits to employees who may be impacted by the pandemic. Other loans help small businesses meet obligations and pay debts until the shutdowns are lifted.
2. Discuss Deferred Payment Options With Creditors
Some major lenders and creditors have developed programs to work with businesses to defer loan payments or debt payments because of the economic crisis. Some lenders are waiving late fees, extending credit limits, and modifying payment deadlines. A lender may be willing to modify loan terms to reduce interest rates and payments.
3. Google Ads Credits
Google is offering free Google Ads credits to midsize and small businesses that have been active within the past year. Businesses should check their accounts for these credits. Google is also donating other funds to help support various organizations, including small businesses. Continued marketing is essential in maintaining current customers and attracting new customers. Business owners can also take advantage of free marketing through social media.
4. COVID-19 Small Business Survival Guide
The Maryland Small Business Development Center has created a guide for small businesses dealing with the impact of the coronavirus pandemic. The guide is available online or through the Maryland SBDC website. The guide provides information about resources, tools, and tips small business owners can use to survive and recover from the economic hardship caused by the shutdowns and other consequences of the response to COVID-19.
5. Small Business Reorganization Act Of 2019
When Congress passed the Small Business Reorganization Act of 2019 (“SBRA”), it had no idea that a global pandemic would threaten millions of small businesses across the United States. The SBRA became effective on February 19, 2020. Under the SBRA, small businesses can file for bankruptcy relief under a new subchapter of Chapter 11.
Subchapter V or Chapter 11 shortens the deadlines for completing the Chapter 11 bankruptcy process. It also gives small businesses more flexibility in reorganizing their debts in a three to five-year repayment plan. The new subchapter of bankruptcy makes filing Chapter 11 more cost-effective and easier for small business owners. Private trustees assigned to the Subchapter V cases assist small business owners in developing a reorganization plan that provides the debt relief they need to get back on their feet after a financial hardship.
Contact a Maryland Business Attorney for Help
A Maryland business attorney can be an excellent resource for a struggling business. Besides providing guidance and support, an attorney can help business owners review contracts, leases, and loan agreements to determine if additional relief is available. Also, an attorney can help a business explore all available options, weigh the pros and cons of each option, and develop a sound business plan for recovery.
