This blog post has been authored by Charity Barrett, The Diamond Lab
HELP ME…is what I continue to see as I peruse social media. Many business owners are struggling after Covid-19 wreaked havoc on the world. During these unprecedented times, it often feels that nobody knows what to do…not even the United States’ government. Cries for help are everywhere and people need guidance on where to get resources to survive.
The Small Business Administration (SBA) has programs intended to help business owners recover. Recover is not the appropriate word because it implies that the problem is over. The problem persists for many business owners which is a shortage of cashflow as consumers hold on tightly to the dollars they would have been spending under normal circumstances. People are scared so they no longer dispose of income like business as usual.
With unemployment at an all-time high and businesses closing their doors permanently, the economy is certainly taking a hit. SBA’s Economic Disaster Injury Loan and the Paycheck Protection Program are two popular programs that more and more entrepreneurs are becoming aware of. These programs are intended to help small business owners keep their businesses open during the struggle to recovery. Both programs are easy to apply for and have criteria that has evolved since both programs originated at the onset of the pandemic.
Business owners have been applying for these grants and forgivable loans, thinking that the money is going to save their business. While the money may be helpful, business owners need to be prepared to live up to the standard SBA has set regarding repayment and forgiveness terms. Many people have applied for these programs out of desperation and do not pay attention to the terms and condition which are manageable but definitely something entrepreneurs need to be clear on.
These programs have expanded to include self-employed contractors that we call the “gig economy.” These include people that receive 1099 income as independent contractors. This is a major development for people in the US because prior to this, it seemed that SBA catered to businesses that have employees. I think with more thought, SBA realized that there is a huge population of people that are technically self-employed but have no employees…they need help as also. The changes to the rules of the PPP and the speed at which people can be approved is helping entrepreneurs who were on the brink of disaster.
Where can people find funding for their businesses if they are not eligible for these SBA programs? There are a number of private lenders all to eager to loan money to businesses that are able to be resuscitated. Careful though…this can be a trick bag like those payday loans and working capital loans with predatory terms.
Try to look for grants which do not require repayment. Free money is the best type of help. It helps fill the gaps that were created from having closed businesses resulting in a halt in revenue. Can a loan really help a company that was already hardly breaking even prior to the pandemic? Not likely. A loan has to be repaid. So it may feel like a life saver now, but when it’s time to pay the piper, you may find yourself in an even more difficult position. Grants are the absolute best type of support to business owners but they are also the quickest to be depleted and not available for the masses. This is why it is important to stay in the know when new grant opportunities become available…early bird gets the worm! And this is what happened when the pandemic first hit.
There were people who were heavily invested in finding solutions for their business and families during the panic and craze. Then there were people who were sick. Then there were people who were not really taking the pandemic seriously. Then there were the people who knew they were in trouble but preferred to relax and watch Netflix. The people in the last category are likely people that are very upset now that they see the well ran dry with the free money giveaways.
It’s not too late! Some programs are closed and gone but it’s not too late to get ahead of things and constantly be on the lookout for new opportunities. Don’t be late to the party again. Check in with your local and state chamber of commerce. Most state and local governments were awarded funds to administer their own grant programs to help families and business owners. You can also search for grants using internet-based search portals such as GrantWatch.com to search for grants you may be eligible for.
Google is your friend! Hop on the internet and allow yourself to dive into all of the information available at your fingertips. It may not be as fun as a “Netflix and chill” binge, or as exciting as your video games, or as interesting as your social media stroll…but it can be very rewarding…ask me how I know? I raised multiple six-figures applying for any and every program I was eligible for and now, I am in a great position to continue my businesses without the worry of how I am going to survive.
I strongly encourage you to take action today. If you’ve already been awarded some funds, apply for more. You may hear some people getting “money-shamed” as if they are being greedy for wanting to take advantage of every possible opportunity. Hopefully, you are not one of those people that look down on others that enjoy abundance. If you are reading this blog and on The Diamond Lab website, it’s like that you do NOT have a scarcity mindset. You know that manifesting money and wealth is about mindset and your belief that you are good enough to deserve all the riches you desire.
“But I’m not struggling so I’m not interested in getting any money.” Okay…that may be the case and more power to you. I just want you to consider that we are not in the clear yet. This pandemic is not over. A second wave seems inevitable and may already have began. You may have made it through the first round but you never know what may happen. I can understand not wanting to take out loans if you don’t really need it. However, free money, if you are eligible…is worth considering. Who doesn’t want a cushion to fall back on?
The SBA programs are for business owners that were impacted by Covid and suffered setbacks. I would not suggest that you take from that pot if you really didn’t lose any revenue due to the pandemic. If you lost revenue…you were affected. Even if you were still cashflow positive but lost revenue…you deserve help. You were accustomed to a certain lifestyle perhaps. If your business was doing very well and took a hit, you deserve to get help also…even if you are not struggling per se.
What’s really important here is to be sure you are on the right side of the law. No amount of money is worth your freedom. Please understand that SBA will have an enforcement division that will monitor and audit these funds that were given. Ignorance will not save you. If you took out a loan and/or received funding…do the right thing with the money. Be sure to use it on things required to operate your business and keep good records so that you are not scrambling if you get the audit notice. Do not fear audits. The people that live in fear of audits are likely dishonest and/or disorganized. Be sure you are neither and you should be A-okay.
If you are interested in finding Covid relief funding for your business, please take a look at the FREE webinar created by Charity Barrett at https://academy.thediamondlab.org/get-covid-money. I think you’ll find the webinar interesting as we discuss SBA loans and grants, in addition to other programs and strategies you can use to save and make money. I call it the power of leveraging.
For more information on SBA and what they offer, visit their website at www.sba.gov. Good luck and stay safe!
Charity Barrett began her journey as an entrepreneur at age 25. She is the founder of Progeny Enterprises Incorporated (PEI), established in 2005. PEI operates a variety of brick and mortar human service-based businesses.
Charity holds a bachelor’s degree in clinical psychology and acquired three years of doctoral level study in the same field with a concentration in neuropsychology. Additionally, she is pursuing her Master’s in Business Administration with a concentration in Finance and Wealth Management at John Hopkins University as a non-traditional, part-time student on a Dean’s scholarship.
As a self-made millionaire, Charity prides herself on creating a legacy for her family and educating the masses about entrepreneurship and financial freedom. She has devoted her life to identifying problems and thinking critically to find solutions that help people in her local community, as well as globally.
Charity has a diverse private equity portfolio that includes a child development center, assisted living facilities, and transient rental properties. She is currently working with a few start-up companies as a board member, business consultant, partner, and/or shareholder.
Most recently, Charity has entered the tech space with her 100% self-funded startup, the Diamond Lab, which is a small business development and networking platform.