In light of the SBA’s recent problems, we thought we would look at Congress in their attempt to provide more small business aid. Whether or not Congress passes this measure, small businesses will still need all the aid they can receive. We wanted to go first through what it means if Congress does pass a new bill, and then what will happen if they do not. Times are tough, and we all need information like this as things continue to change.
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What to Do if Congress Provides More Small Business Aid
Currently, a bill is in Congress to provide $300 billion in funding, but Treasury Secretary Steve Mnuchin says that more money after this bill might not be likely. Considering how quickly the first (and larger) Congressional aid bill ran out, it is understandable to be wary. So… now what for the SBA?
Small businesses still need financial aid that they aren’t getting from the government, but hopefully Congress will push this forward and change things. Pressure has been growing in Congress by small businesses as they face more difficult problems. As the Coronavirus situation continues, it is safe to assume that we aren’t looking at the end of the road. So… what can we do about it?
Well, the government is clearly having issues handling the pandemic, that is obvious. But with how Congress and The Fed are going, this “new normal” is looking a bit topsy-turvy.
If Congress provides another round of fundraising, then it is hopeful that it will go in a similar manner as the original round. The PPP is helpful, but it is only one form of payroll payment. But get to it quickly, because it might run out again. If this is the last round, then you need to apply fast before it is too late.
What to Do if Congress DOESN’T Provide Small Business Aid
This would be a worst-case scenario, but not just for small businesses. Congress failing to pass this bill would be a massive problem for the country, Congressionally and for businesses. This would mean some sort of problem has happened between Democrats and Republicans to prevent some sort of compromise. That would be bad! But let’s ignore the political consequences for a moment.
If the next round of Congressional funding fails, small businesses will suffer and be forced to look for alternative forms of funding. What matters is preparation. If this is going to be a possibility for the future, prepare to achieve payroll in ways somewhat different from usual. Also, look to traditional and alternative lenders in order to finance yourself.
Congress isn’t the last stand for small businesses. But it will make a difference. Stay aware of just what could be happening next for your small businesses, and hopefully Congress will provide the aid you need.