Biz2Credit Launches SBA Disaster Loan Resources for Small Businesses Struggling Due to the Coronavirus
03/26/2020 | 03:08pm EDT
NEW YORK, March 26, 2020 (GLOBE NEWSWIRE) -- Biz2Credit, the leading provider of small business financing online, today announced a new set of online resources to help companies quickly obtain funding needed because of economic hardships caused by coronavirus (COVID-19).
The company has set up a dedicated website (SBADisasterLoans.info) offering information about Small Business Administration (SBA) Economic Injury Disaster Loans (EIDL) and other types of funding for businesses in need of working capital during the coronavirus pandemic.
Companies that need money to replace lost revenues due to the ongoing crisis can get help from a Biz2Credit Funding Specialist to apply for SBA Disaster Loans, which can take 3-4 weeks to process, and also get pre-screened to see if they qualify for short-term funding from Biz2Credit that can be distributed quickly to meet immediate needs. The online funding provider says that it is taking numerous steps to help small business owners, who need as many options as possible during this critical time.
“We need to act fast or else 75% of small businesses in America will go bankrupt if they don’t get access to credit in the next 60 days,” said Rohit Arora, CEO of Biz2Credit. “Small business owners need money in hand, and they need it quickly. Our dedicated Coronavirus Disaster Loan webpage will dramatically speed up the funding process for small business owners who desperately need money.”
Biz2Credit was among two dozen FinTech companies – including OnDeck, Kabbage, and Womply – that co-signed a letter to leaders in the U.S. Senate and House of Representatives calling on them to quickly approve $500 billion in discretionary funding for the nation’s small businesses that are suffering under the current coronavirus health crisis.
We believe there is more to be done and it is essential that Congress acts immediately to stabilize the economy and support America’s small businesses and workers, who are facing a grave threat to their survival.
The FinTech leaders stressed that a swift solution is crucial to small businesses across the nation and that layoffs are already affecting vast numbers of Americans. In fact, as each hour passes, more people employed by small businesses will be laid off, and more companies will face closure or bankruptcy. The co-signers of the letter urged the congressional leaders to pass a stimulus bill immediately, and to enlist non-bank lenders to help the SBA provide capital quickly. FinTech firms typically can approve loans within hours, rather than the 3-4 weeks it might take for the SBA to get money into the hands of companies in desperate need of working capital.
The private sector is ready to help including with data, expertise, and engineering resources. We seek no gain from this crisis. Our only aim is to protect the millions of small businesses that we are proud to call our customers.
"When I was SBA Administrator during Hurricane Katrina volumes increased dramatically, by hundreds of thousands in a single month,” said Hector Barreto, who led the SBA during President George W. Bush’s administration. “With the current crisis, the SBA will be receiving many, many more requests - potentially in the millions. The need for private sector support during this unprecedented influx could not be more clear."
Just how big a toll has the coronavirus crisis taken on small business owners?
Biz2Credit research found that:
Restaurant revenues have dropped 26% on average in the last two weeks.
Grocery stores have taken on four times more debt in March than each of the previous two months as they are forced to fill orders for backordered inventory at higher costs and increased manpower.
The average requested amount of funding from businesses in highly impacted industries (restaurant, personal services, travel) has already increased 23% through the first two weeks of March.
To help struggling business owners to better understand funding options at this critical time, Biz2Credit will also host an informational webcast on Tuesday, March 31, at 12:00 p.m. (EDT) to teach business owners about their financial options in the face of the COVID-19 pandemic and how to apply for Disaster Assistance. The webcast will include live Q&A with some of the country’s top business experts, including Rohit Arora and Alfredo Ortiz, President and CEO of the Job Creators Network.
“JCN is thrilled to team up with Biz2Credit to help small businesses navigate this crisis and understand the aid package that will soon be on the President’s desk. This aid is not a bailout for small businesses. It’s a lifeline to provide a bridge back to a healthy economy. We’re optimistic that once implemented, phase 3 of vital economic relief will be a tremendous help to America's small business community. JCN will continue to advocate for targeted public policy that will allow Biz2Credit to assist those that need it most.” said Ortiz.
The webcast is part of a range of resources available on the resource hub that Biz2Credit has established (SmallBusinessDisasterSupport.com). The site will include information, such as updated data about small businesses during the crisis, and educational resources and guides written by entrepreneurship experts for business owners coping with the fallout of the crisis.
“The coronavirus (COVID-19) is causing huge disruption to the overall economy, and small businesses in particular are being hit hard,” said Arora, one of the country’s leading experts in small business finance. “Many businesses have seen their cash flow drop to zero. Meanwhile, so-called ‘non-essential’ businesses have been forced to close and are being asked to pay workers who are sick for 14 days. Business owners across the country are in a serious cash flow crunch.”
About Biz2Credit Founded in 2007, Biz2Credit has arranged more than $3 billion in small business financing.The company is expanding its industry-leading technology in custom digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @Biz2Credit, Facebook, and LinkedIn.