By Jeff Bardos, CEO, Speritas Capital Partners
April 15, 2020 – Greenwich, CT
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UPDATE: SBA notice – The Paycheck Protection Program (PPP) ended on May 31, 2021. Existing borrowers may be eligible for SBA PPP loan forgiveness.
Look Beyond Paycheck Protection Program Loans – 4 Steps to Take Now
- Assess Your Ability to Leverage Hard Assets
- Find & Explore City, State and Federal Relief Programs
- Get in Line for a Paycheck Protection Program (PPP) Loan
- Watch for Details for the Federal Reserve’s Main Street Lending Program, coming soon.
First and foremost, I hope you are as well as you can be, both mentally and physically. We’re all facing multiple challenging situations. Keeping your business running, or simply afloat, is a daily struggle despite the launch of numerous federal and local programs.
I’ve been working hard to help clients assess their financing options in this extremely challenging time. Most businesses are focused on SBA Paycheck Protection Program loans but there is more to the financing puzzle than PPP.
We’re recommending that our clients take the following immediate steps as they look beyond PPP:
1. Assess your ability to leverage hard assets.
We’re helping clients determine if they have additional liquidity “hidden” on their balance sheet. ABL lenders, factors and commercial real estate lenders are open for business (although they are more conservative these days.)
Accounts receivable, inventory, machinery & equipment and real estate can be leveraged quickly. Consider purchase order finance to free up working capital to support existing orders.
2. Find state and local financial relief programs.
Some states and municipalities have created economic incentive programs to provide immediate relief. The Council for Community and Economic Research’s State Business Incentives Database is a useful starting point for identifying state programs.
Local small business development centers (SBDCs), funded in part by the SBA, can help you navigate both SBA loan programs and state and local relief programs. Also look for Women’s Business Development Centers.
3. Get in line for a Paycheck Protection Program loan if you haven’t yet.
Businesses without a credit relationship with a traditional lender have limited options. Some with bank relationships have been shut off anyway.
A few bank and nonbank lenders are taking—and processing—PPP applications from new customers and more are coming online each day as the SBA sorts out their process for approving new lenders.
We have access to direct PPP lenders with capacity for new clients. The process is cumbersome, but we are making progress on behalf of our clients. Contact me today if you need PPP help.
4. For businesses too large for PPP, watch for details of the Fed’s Main Street Lending Program.
This new loan program will provide funding for a broader range of businesses by focusing on mid-sized businesses with up to 10,000 employees or $2.5 billion in 2019 annual revenues. The Federal Reserve is seeking comments on this program until April 16, 2020.
Speritas Capital helps clients assess their options in an unbiased way. We are independent and have access to a wide range of financing options. Schedule a call with the author, Jeff Bardos or call/text him directly at 203-247-4358 to discuss your specific issue or situation.
Three Critical Financing Steps to Take Now During the Coronavirus/COVID 19 Crisis
Liquidity Planning in the Age of Pandemics, originally published in the National Equipment Finance Association Magazine
8 Steps to an Accurate Cash Flow Forecast (with template)
Jeff has over 25 years of experience in the financial services industry. After graduating from the Columbia Business School, he joined the New York Federal Reserve Bank as a senior staff member in Bank Supervision, leading the Bank Analysis department. From the nation’s central bank, Jeff moved into the private sector, working at senior levels in commercial banking, retail banking and risk management. He has also played senior founding roles in several start-ups. Learn more about Jeff.
About the Author
Jeff Bardos, CEO, Speritas Capital Partners
Jeff has over 30 years of experience in the financial services industry. After graduating from the Columbia Business School, he joined the New York Federal Reserve Bank as a senior staff member in Bank Supervision, leading the Bank Analysis department. From the nation’s central bank, Jeff moved into the private sector, working at senior levels in commercial banking, retail banking and risk management. He has also played senior founding roles in several start-ups. Learn more about Jeff.
Speritas Capital Partners specializes in complex credit, collateral and cash flow situations and we never take upfront fees.
Because Greenwich CT based Speritas Capital is a debt advisory firm, we have access to a wide variety of lending structures. We’re not beholden to any one lender or structure so we can use our creativity and experience to design a structure that truly fits the needs of our clients.