LAST UPDATED: 1:15 pm, March 27th, 2020
The government and private entities are working to create financial solutions for small businesses impacted by COVID-19. We will continue updating this blog post as we find more resources for home service businesses.
Economic Injury Disaster Loans (EIDLs)
The U.S. Small Business Administration is offering low-interest loan assistance of up to $2 million for businesses of any size impacted by the Coronavirus.
Per the CARES Act, small businesses that apply for an EIDL will receive an advance of $10,000 within three days that they do not need to pay back even if they are not approved for the loan.
What you should know about disaster relief loans:
Businesses in all U.S. states and territories are eligible to apply.
The new CARES Act expands eligibility requirements. For instance, sole proprietors are not eligible to apply, and businesses do not need to prove they don’t have access to other credit sources before applying.
The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
The interest rate is 3.75% for small businesses and will have long-term repayment programs of up to 30 years.
Many cities and states are creating their own local relief programs.
Big corporations such as Facebook, Verizon, and Amazon are creating relief funds and grants for small businesses. Check out a list of resources available from many private companies.
Alternative Lending Solutions
As banks are overwhelmed with an influx of new credit and loan applications, peer-to-peer (P2P) loan providers and fintech platforms can offer much needed alternative avenues for obtaining capital.
Payment processors like Square, PayPal and Stripe also offer credit solutions for small businesses. If you’re already a customer, they will have your transaction history to pull from when making credit decisions.
Both P2P providers and fintech platforms offer fast credit decisions and access to funds, often a much faster turnaround than traditional business loans.
Short-Term Cash Flow
For short-term cash flow assistance, check out Fundbox. Small loans can be available as quickly as the next day. Note that current Housecall Pro users can apply for business credit via Fundbox through their account. Learn more.
This article is for informational purposes only and to foster thoughtful communication and discussion regarding the COVID-19 pandemic. Readers should obtain independent advice relating to their businesses and their particular circumstances.
Home Services Coronavirus Daily Evening Update
Housecall Pro’s daily evening Coronavirus update is hosted by Housecall Pro’s Senior VP of People, Melina Fairleigh, co-founder Roland Ligtenberg, and Alexa Greenberg to share daily updates on the Coronavirus pandemic and its effect on the home service industry. Join now to learn and ask any questions regarding your business.
How to register for the free webcast: click here to join now
Time: every evening at 5 pm PDT/8 pm EDT
Housecall Pro also has an official Facebook group for home service businesses to discuss how the pandemic is affecting businesses and what actions you can take to keep your business afloat during this time. You can join for free here.