Small Business Debt Relief During COVID-19

By Robert Jacovetti

The current health pandemic has affected thousands of people across the country, especially small business owners. Small businesses aren’t only dealing with the responsibility of keeping employees and customers safe, but they are also dealing with financial difficulties. Our New York debt relief attorneys have put together debt relief options and resources to help small businesses remain afloat during this time.

If your small business is facing overwhelming debt due to the COVID-19 pandemic, our New York debt relief attorneys are here to guide you. Contact us today at (516) 217-4488 to learn more about your options.

COVID-19 Funding Options

The U.S. Small Business Administration (SBA) offers various temporary funding options and programs to help businesses. Whether you need a loan advance, or you need paycheck protection to retain employees, they have programs available to help you.

The SBA is also working with local partners to counsel, mentor, and train small businesses during the current health crisis. They have over 30 local partners in New York City, like the New York Small Business Development Center and Columbia University, to help you sustain your business and achieve financial relief.

Below are various resources available for small businesses to utilize when operating during the current health crisis:

  • 504 Loan: This loan is meant to help businesses with economic development and job retention. Proceeds should be used for acquisition, or eligible refinances for fixed assets.
  • 7(a) Program: This offers loan amounts of up to $5M. The loan uses include working capital, expansion, renovation, new construction, purchase of land or buildings, purchase of equipment, starting a business, and more.
  • Community Advantage: This loan program allows mission-based lenders to assist small businesses in “underserved markets” with a loan of up to $250,000. The use of proceeds is the same as the 7(a) programs.
  • Express Loan: This loan program offers up to $350,00 for no more than seven years with an option to revolve. This express loan offers a 36-hour turnaround time for approval or denial if you need a loan as quickly as possible.
  • Microloan: This load program is for leading nonprofit organizations. The loan can be for working capital, supplies, machinery & equipment, and fixtures, but excludes real estate. The maximum loan amount is $50,000.

Common Issues Small Businesses Are Encountering During COVID-19

According to the SBA, there are various issues that businesses should be looking out for during this time. As issues arise left and right, companies need to protect their business to remain successful post-pandemic.

Below are common issues small businesses are encountering during the COVID-19 pandemic, according to the SBA:

  • Businesses may have issues accessing capital to make payroll, maintain inventory, and respond to market changes.
  • Due to the change in supply, businesses need to adequately measure supplies of inventory and diversify distributor sources in case a supplier can’t meet order requests.
  • Businesses may also need to enhance the protection of customers and staff by frequently cleaning surfaces touched by visitors. Businesses also need to ensure that they have the supplies of cleaning materials to meet increased demands.
  • Businesses are also suffering from debt and financial issues during this time. Businesses need to seek guidance from a financial professional and debt relief attorney to ensure that they are taking the right steps to protect their business’ finances.

New York Business Debt Relief Attorneys

If your business is struggling financially due to the COVID-19 pandemic, you have options. Not only does the SBA have resources to help you, but our team of business debt relief lawyers at Jacovetti Law, P.C. can also help you improve your finances as you pay back the debts you owe. We understand that every business faces unique debt issues, so we are prepared to help you with an array of business debt relief cases. We handle a variety of cases, including guiding you through SBA business loans, merchant cash advances, lawsuits, and more.

Contact our New York business debt relief lawyers today at (516) 217-4488 to schedule a virtual consultation!