All businesses have been affected by the coronavirus pandemic. There is almost no security in a scenario like the one that is unfolding. As a business owner in Pittsburgh, the mandated business shutdown has affected tens of thousands of businesses and employees. As an owner, you have one job and that is to make sure the business survives. Unfortunately, when sales dry up, you immediately have to cut costs. The largest costs tends to be payroll, which is why companies are having massive layoffs in Pittsburgh and across the US.
This is an extremely difficult time, as no business wants to let go of their employees. They are what keeps the company moving. When a company gets to this point, they have already cut costs and renegotiated contracts as much as possible. They are at the end of the line and are looking for a way to keep the lights on.
Business financing will become extremely crucial at this point. Finally as of today, a bill has been passed to provide funding for small businesses and unemployed individuals all over the country. Pittsburgh business owners should take advantage of these loans and grants as soon as possible to create a cash reserve for the company. This is in the form of loans from the SBA, which can be applied for through the government website, as well as through large banks that lend for the SBA as a vendor partner.
The next option to consider is business lines of credit. These can be financed from local and large banks to provide liquidity for a company in need. These can be unsecured financing options meaning not backed by collateral. There are also business credit card options for lines of credit that have entered the market place. These can be a life line for the company and working capital in the short run.
Another options is refinancing. This can be refinancing an investment property, or even your personal residence to pull equity out of a property and utilize the cash to keep the business running. In Pittsburgh, tons of equity has been created from the real estate boom. Many businesses are looking to lock in cheap rates with long term loans to access the equity in their properties.
The bad news is this epidemic is not even close to subsiding. Business in Pittsburgh and across the world will be very challenging for the next few months. The good news is, there are ways to find capital to keep the doors open. Utilize any of the options above and fight to continue to keep the business running. Eventually, this will end and consumers will come back to purchase your product or services.