The Small Business Development Center (SBDC) at the Toledo Regional Chamber of Commerce has worked with hundreds of small businesses since the crisis began. In our role as consultants working in alignment with the SBA, many businesses have received EIDL advance grants and the more traditional EIDL loan, and many more have received PPP loans. The EIDL grant did provide a lifeline for many very small businesses, but with a maximum of $10,000.00 per business. For larger businesses with higher expenses those funds were spent quickly. Many businesses received EIDL loans, and most owners seemed to have been saving those funds for cash flow shortfalls in the future, which is a very sound strategy. But not all businesses received the EIDL loan. PPP funds had to be spent predominantly on employee wages, so they had little impact on the overhead or inventory.
And now we are seeing an increase in online vendors and others offering short term solutions for cash strapped business owners. Their outreach follows a consistent pattern: limited documentation needed and quick turnarounds. Loan documents are sent out with lots of fine print that only a well-trained legal eye can review for all the pitfalls. But here are a couple of common concerns: High interest rates even for short term loans; extreme penalties and expanded interest rates for any noncompliance issues, like being a day late with the payments; daily interest withdrawals from your operating accounts; and, in some extreme examples, filing default suits which can be attempts to take over ownership of the business, or filing personally against the owner.
Cash flow problems are very troubling to owners. You agonize all day because business was not as good as you needed it to be, and then you can’t sleep at night worrying about tomorrow and the next day.
If your business is considering this path, please first call the SBDC at 419-243-8191 ext. 1229. Explain your problem and one of the SBDC consultants will guide you through other ways of dealing with your problems. The SBA EIDL loan program is currently taking applications. We all have to wait and see what that will bring. Your banker, your CPA, your creditors and your community want you to succeed. Let our experts help you to get through this time and prepare for days to come. SBDC services are no cost, open to all business owners in our community and confidential.
Cash flow problems are very troubling to owners. You agonize all day because business was not as good as you needed it to be, and then you can’t sleep at night worrying about tomorrow and the next day.
If your business is considering this path, please first call the SBDC at 419-243-8191 ext. 1229. Explain your problem and one of the SBDC consultants will guide you through other ways of dealing with your problems. The SBA EIDL loan program is currently taking applications. We all have to wait and see what that will bring. Your banker, your CPA, your creditors and your community want you to succeed. Let our experts help you to get through this time and prepare for days to come. SBDC services are no cost, open to all business owners in our community and confidential.
| Good luck and good business, Bill Wersell Director, SBDC Toledo Regional Chamber of Commerce |  |
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