A Small Business Owner's Guide to Funding Options Without a New PPP
28 Dec 2020
Though the Paycheck Protection Program (PPP) ended August 8, 2020—with a lack of clarity as to when it might be revived—businesses are still in need of capital.
Though more than 5 million PPP loans have been approved, accounting for $525 billion, according to data from the Small Business Administration (SBA), it’s still not enough.
House Democrats propose allowing second loans to small businesses but with some restrictions: They must have fewer than 200 employees and have experienced a 25% reduction in quarterly revenue year-over-year due to the pandemic.
Nonetheless, in advance of waiting for a stimulus package to be passed—and even if it does— businesses should consider any additional alternatives.
Six additional funding options
1. Equipment financing and leasing
This is not a traditional loan, but if your business needs equipment—perhaps even updated equipment in order to accommodate new Covid-related sanitation or social distancing rules—consider working with the manufacturer or distributor to lease the equipment rather than use the proceeds of another loan to buy it.