2020 is a year that no one will soon forget. Between COVID and the upcoming election and international struggles and more, it’s an understatement to call this year intense. Even the government has faced complete overhauls due to these chaotic times. But if there is one department that has faced the bulk of 2020’s pain, it’s the SBA. The Small Business Association did more business in 2020 than they had in the past 14 years combined. But when we relied on them, they failed. So, what do we do about the SBA after 2020?
The SBA During the COVID Outbreak in 2020
Obviously, the SBA is not the biggest victim of COVID, but small businesses have long expected the SBA to be reliable. That’s gone out the window now, however.
When businesses first started to close in March, the SBA was going to provide two different types of loans for small businesses. The Economic Injury Disaster Loans (EIDLs) and the Payment Protection Plan (PPP) were two measures that businesses relied on from the beginning. Yet as 2020 bore on and as COVID got worse, the SBA stopped taking loan applications. Eventually even the people who applied found themselves not getting the loans they needed.
The SBA’s funds were abused, and small business owners are left fending for themselves as 2020 has continued.
What’s Next for the SBA?
It’s understandable to be worried about what the SBA can and can’t do. Until loans are paid back, the SBA is going to be working overtime with too little money. On top of that, the loans that people are borrowing could be pretty difficult to pay back. So with all of that in mind, small businesses might need to look elsewhere to alternative lenders for loans. The lending economy hasn’t had a shakeup this massive in years, but now you might need to prepare for the worst.
Check out our writings about the small business lending economy now across our site if you feel like you need a loan. The SBA might not be reliable for a long time, and more than likely not in 2020. Prepare yourselves.