Look Up: You Might have Access to Working Capital
Business owners, it’s so easy to keep your head down and your nose to the grindstone, isn’t it? At the Chamber, we see it all the time. Members get so laser-focused on the work that they’re doing to grow or sustain their businesses that they can miss opportunities outside of their normal sphere of influence. The worst part is when businesses leave money on the table when they’ve been impacted by something outside of their control. So, bear with me for a few more lines, and find out if you’re eligible for access to working capital that you might not have otherwise realized through the U.S. Small Business Administration.
SBA Economic Injury Disaster Loan for Tropical Storm Debby
On August 9 & 10, 2024, Tropical Storm Debby smashed into our region. Following the storm, a Presidential disaster declaration was issued. When that declaration was issued, an entire arm of the U.S. Small Business Administration that we might not normally encounter mobilized to begin offering relief. To offer that relief, the disaster declaration extends into concentric circles outside of the nucleus of the impacted area with varying degrees of support.
How does this effect your business? If you experienced economic injury as a result of Tropical Storm Debby, you may be eligible for access to working capital for needs caused by the disaster through the SBA Economic Injury Disaster Loans (EIDLs). If you have a business in Columbia or Montour Counties, you may be eligible because of economic injury – meaning that it’s not just about physical property damage. If you liquidated savings, replaced inventory, or are seeing a decline in your business as a result, you may have sufficient economic repercussions from the storm to make you eligible, and the terms are worth considering. Interest rates as low as 4% for businesses and 3.25% for nonprofit organizations could be a game changer, and interest does not begin to accrue and monthly payments are not due until 12 months from the date of the initial disbursement.
Resources For SBA Economic Injury Disaster Loan for Tropical Storm Debby:
- Informational Flyer
- Fact Sheet
- News Release
- Apply
- Questions? Call the SBA’s Customer Service Center at (800) 659-2955 or send an email to disastercustomerservice@sba.gov
Chamber Low-Interest Loan Program
Two weeks ago, a Chamber member business owner took a day off to run errands, and stopped into the Chamber. We helped him with his errand, and took five minutes to find out how he’s doing. He shared about all of the wonderful things he’s doing, and the improvements he’s trying to make to his business, sharing how liquidity and working capital is always an issue during his slower season. We took a moment and asked, would the Chamber’s Low-Interest Loan Program help? He had forgotten all about it, so we referred him to the application, and recommended he talk to some financial advisors. A week later, the Chamber cut a check.
In this case, the stars aligned, and the member had recently had a financial analysis done by his financial institution, the Chamber’s volunteer loan committee and executive committee were already scheduled to meet three days after the loan paperwork was submitted, and all of the ‘I’s’ were dotted and ‘t’s’ crossed without rushing the effort. That doesn’t always happen – but we’re happy to brag about it when it does.
Resources for Low-Interest Loan Program:
- FAQ
- Application
- Questions about the Low-Interest Loan Program? Email Chamber President Chris Berleth at cberleth@columbiamontourchamber.com.
Pennsylvania Council on the Arts: Creative Entrepreneur Accelerator Program
The Community Giving Foundation is a Champion for the PA Council on the Arts, and serves as the application administrator for a grant program that helps creators/makers with grants up to $2,000.00. If you’re a creative entrepreneur over the age of 18, manage a business with gross revenue of less than $200,000, and reside in PA, three steps get you into a very small pool of grant applicants: 1. Consult with the SBDC for a referral 2. Submit client information form to the Community Giving Foundation (CGF), and 3. Complete the application and submit to the CGF. It’s that simple. Check out more information here.
If you’re in Montour County, be sure to consult with the Bucknell SBDC for assistance. In Columbia County, contact the Wilkes SBDC.
Of all of the challenges facing the business community in Columbia and Montour Counties, access to capital is a barrier we can overcome. Programs like these, as well as a long list of excellent local financial institutions make this barrier easier and less complicated than we might think.
So don’t be intimidated, and don’t forget to look up! It might not be raining cash, but you might be surprised that it doesn’t need to be as hard as we tend to make it.