Funding for some coronavirus economic relief programs has run out, and that’s left many organizations with more questions than answers. This is a time to regroup and review your options.
- The Paycheck Protection Program and Economic Injury Disaster Loan program funds are no longer available.
- Many organizations planned to use these disaster relief programs to keep their organizations moving forward through challenging times.
- Instead of panicking, revisit your strategy and review what other funding options are available.
Would you like to talk with an advisor?
On April 15 and 16, the Small Business Administration (SBA) announced that funding had been exhausted for the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP), respectively. Absent the appropriation of new funding, the SBA will not be taking new applications. Since many organizations were planning to use one or both of these programs to provide emergency funding, this is creating a panic in the marketplace. Let’s talk through what this really means and how we can craft a Plan B.
Crafting a Plan B
1. Don’t panic!
First, take a deep breath. Congress is actively working to appropriate more funding for the programs. While the future is uncertain, we are hopeful a new bill will pass later in April that could reopen the EIDL program and the PPP.
Additionally, while the EIDL and PPP were great programs, there are other options for economic relief still available. Consider which tax credits or other tax savings opportunities may be available. Watch for the Main Street Lending program to open soon. Check out local loan and grant programs. And keep in mind that private equity and investment funds are investing in organizations.
2. Take a step back and review your situation
Review your financial situation and model out some scenarios. Plan A might not have worked, but take stock of your other options and understand how each will impact your economic outlook. CLA has professionals and tools like CLA Intuition 2.0 to lend a hand throughout the process.
3. Develop an action plan
Begin taking steps to take your organization in a new direction. The daily — even hourly — COVID-19 developments are disorienting. Organizations must be nimble and action-oriented to a whole new level. No one has all the answers today, but it’s still critical to continue moving forward. If things don’t work as planned, then move on to Plan C or Plan D. The important part is to plan, build in some contingencies, take actions, and then adapt the plan as you go and as the situation evolves.
How we can help
Let’s have a conversation about your organization. Our CLA professionals can help keep you informed about recent developments, create interactive modeling dashboards for various COVID-19 scenarios, and come alongside you to design a strategy for Plan B. Visit our COVID-19 Resource Center for the latest information about these programs as details become available.Contact Us