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If your business is operating, even at drastically reduced levels, apply now for a cash infusion to recover.
Where are the Big Banks?
We are living in historic times as the world experiences unprecedented challenges because of Coronavirus. The health crisis precipitated massive global disruptions in economic activity, drastically harming businesses and individuals. The spreading panic caused a virtual freeze on all financial platforms. Lines of credit were being reassessed, banks were closing, and access to survival capital was being cut off.
Small businesses are the core of the U.S. economy. Yet, during these times, desperate business owners are left without options for lifelines.
Government Assistance for Small Businesses
Local, state, and federal government agencies have financial assistance programs for small businesses affected by the COVID-19 outbreak. These programs vary by agency but tend to take the form of grants and low-interest loans to help cover payroll and rent.
National Government Assistance Programs for Small Business
The federal government passed a $2 Trillion bailout package that includes over $300 Billion in relief funds for small businesses
First Financial Responders
For more than a decade, particularly since the recession of 2008, the merchant cash advance (MCA) industry has been at the forefront of alternative financing for small businesses. In times where the big banks have deemed small businesses unfit for loans, the MCA industry has stepped up to fill the void. Big banks took advantage of businesses, homeowners, and the financial markets by providing unaffordable loans, packaging, insuring, and re-insuring them. Then they sold these toxic assets to financial markets, ultimately crashing the economy.
After the crash, they were granted TARP funding from the government. Yet, they continued to avoid lending to small businesses. Bloomberg Business, which has been skeptical of and outright hostile to the MCA industry, stated that merchant cash advance providers were the first ones in the post-2008 market cycle to fund small businesses. Forbes recommended merchant cash advances as helpful options for small businesses in this market.
The traditional banks and new online payment processors and lenders took notice and entered the alternative space. JP Morgan Chase, Amazon, Amex, Square and others wandered in. However, as the risk level rises with current market conditions, lending has reduced to a trickle. The Big Banks are once again nowhere to be found when small businesses need the most!
Small Business Administration Programs
The SBA has an Emergency Injury Disaster Loan Program, which provides loans of up to $2 Million to businesses in designated disaster areas. The rates are 3.75% with a maximum term of up to 30 years. To qualify, your state must submit a disaster declaration to the federal government.
Here to help
In recent years, Premium Merchant Funding has grown to be one of the nation’s largest alternative financing brokers and funders. Our mission is to guide small business owners to sources of growth capital and provide funding, even when risk levels are elevated, and the economy is unstable.
PMF opened a Corona Relief Program to assist viable small businesses with immediate survival capital to stave off business closures, bankruptcy, evictions, and other adverse consequences of the current global turmoil. If your business is operating, even at drastically reduced levels, apply now for a cash infusion.
Together we will overcome these challenges and rise from the ashes of Corona stronger and more resilient than ever before.