2021 Small-Business Funding: What That Means for You
Now that your year-end financials are wrapped up and your New Year budgets and plans are in place, it’s time to kick things into gear! So what’s next? After the changes brought on by 2020, many entrepreneurs may be wondering if 2021 is the year to sell their business. It’s important to time your exit properly. So what may look like a great year to move onto the next chapter of your business life, it may in fact be your year to build value for the future.
When making that decision, many factors come into play. It’s important to also understand your tax burden as we all get warmed up for tax season. A business valuation is a logical next step. It will empower you and help you ascertain the black-and-white truth of where your business is at today, and where it can be one, or even five years from now.
A loan may also be the correct choice for the short-term future of your business. Did you know that if you’re approved for a SBA 7A Loan between December 22, 2020 and September 30, 2021 that you’ll receive six months of government payment of principal and interest, also capped at $9,000 per month?
Simple math: you won’t pay interest on principal.
The SBA is increasing their loan guarantee from 80% to 90%. Banks as a result will be more willing to lend as the SBA takes on additional risk. The six months of loan forgiveness will also apply to refinancing. You may refinance a current SBA Loan, or non-SBA debt, to qualify for the six-month grace period.
Beyond the advantageous SBA 7A Loan, there is actually a great deal of both public and private funding circulating this year for small businesses. While it may sound counterintuitive, the post-pandemic economy aims to open a new chapter of financial success for small businesses.
If you are having challenges, we have a list of resources to help you along your journey:
US Chamber of Commerce Guide to Small Business Emergency Loans
PPP Second Draw Loans
BA Funding Programs
Mainstreet Lending Program
Save Small Business Toolkit
State by State Local Programs and Assistance
Guide to PPP Loan Forgiveness
Combating Coronavirus
We care about small businesses, and our goal is to wisely guide you through the next stage of your business success. We are here to guide you, as a trusted partner, and to discuss your options to sell or answer any of your questions on how to prepare to exit your business.
