Many institutions are offering loans to MSMEs. Use the loan as working capital and you will get a specific amount depending on your qualifications. The application may come with a cash grant that requires no repayment. Since these programs are on a first-come, first-served basis, it is best if you apply ASAP.
This is different from a disaster loan in the sense that its primary purpose is to support your company payroll and frontline expenditure. Banks will facilitate the application process. A noteworthy feature of business protection loans is forgiveness for debts incurred payroll, mortgages, rent and utilities. The balance of the loan not forgiven would be paid within a period of two years and less than 1 per cent interest.
The maximum loanable amount under a business protection program is 2.5 times your company’s average payroll. This already covers salary, wages and commissions, and attendant benefits like sick, vacation and emergency leaves. It also includes mandatory payments for group healthcare benefits, insurance premiums, and social security benefits. Not included in the payroll are employees earning above-average salaries. Business protection programs may exclude compensation employees residing outside the country.
Be on the lookout for financial institutions and other authoritative bodies offering grants to small businesses. Add this to your other loans to tide you over until the pandemic stops. If you are having difficulting paying for your loan, request a grace period from your bank. Having some breathing room during a crisis is more than welcome.