Who Wants to Get an SBA Loan?
Those of you who are or are close to a small business owner have been hearing the terms “SBA Loan” and “Payment Protection Program”floating amorphously in the atmosphere for at least a week now. Maybe you’ve figured it all out. But if you haven’t, I can point you straight to the details below for everything you need to know. Furthermore, I hope that my own decision process and the resources I’ve since accumulated prove helpful.
Obviously, the process of considering an SBA Loan is as much of a game show as love is a game, meaning not at all. But the lifelines themselves closely mirror the stages of my thought process:
Ask the Audience
There are several articles on the Internet discussing the SBA loan. The problem is, at the beginning of last week, information was limited and for many of us, confusing. Fortunately, articles aren’t the only resources the Internet has to offer. Countless Slack communities have emerged in the wake of our global online transition to bring people together around common interests. These Slack communities, such as the one I’m most involved in called “Ladies Get Paid”, are not connected to any one work team. They serve as a place to post news, ask questions and facilitate partnerships between members.
Last week, I noticed some LGP members posting links to upcoming webinars meant to help solopreneurs make sense of the SBA loan opportunity. But I also came across a post from a member wanting to connect with those considering applying for the loan. I reached out to her on Slack’s private message feature and even though neither of us gained much actionable insight from the webinars we attended, it helped not to be alone.
Phone a Friend
I’ve always been an act now and think later kind of girl, which tends to result in captivating dinner party stories after the consequences stop stinging. But after barely recovering from a spiral fracture in my ankle and failing to recover from a way scarier broken heart, I’ve decided to try and pivot my style.
I was seconds away from taking the plunge when I made the wise decision to first check with a friend of mine who recently left a lengthy career at one small business for another. I juxtaposed my status as a recently incorporated solopreneur with that of my close colleague, Finn, who runs a family glass business in Louisiana. My friend was easily able to distinguish Finn’s eligibility for the SBA loan from my lack thereof. Finn’s business has been incorporated since 2015, complete with a large physical warehouse and employees on payroll. He will have an easy time showcasing these facts on his application and more importantly, his loan will likely be forgiven in full, given his ability to filter the loan money into physical rent checks and services like Quickbooks. Not to mention, Finn’s loan will amount to roughly 11,000 which compared to my optimistic estimate of 2500, seems a lot more worth the risk.
Before phoning my friend, I had only been grappling with my own case. Adding Finn’s to the mix gave me a needed dose of perspective that resulted in my making a final decision not to apply.
50/50
After sifting through lifelines one and two, I found myself wondering about a compromise. A loan may not be in the cards for me right now, but I am far from giving up on the overall concept of applying for funds. If you’re in my situation as a relatively new solopreneur, don’t shut out more creative and less conventional options. AND most importantly, remember to refresh your search regularly. This site listing resources for women-owned businesses did not exist when I last searched for grants a few days ago. But here it is now as I look on behalf of all of you. Don’t identify as female? No problem. Fun may go to die at UChicago (Northwestern grad speaking), but entrepreneurship is very much alive. Check out their extensive list of both grant and loan opportunities. We’ve just scratched the surface just now, but please believe me when I say that barring any crippling emotional or physical catastrophes (they happen often), I fully intend to post an ongoing list of COVID 19: Small Business and Freelancer Resources as they emerge.
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