As we’ve watched the COVID-19 pandemic unfurl around us for the past several weeks, many of us have been left wondering when, and how, the economy will restart and what the future will look like. And while many businesses are struggling right now, others have embraced the challenges presented, and certain segments are thriving. By Sherri Seiber
As we’ve watched the COVID-19 pandemic unfurl around us for the past several weeks, many of us have been left wondering when, and how, the economy will restart and what the future will look like. And while many businesses are struggling right now, others have embraced the challenges presented, and certain segments are thriving.
We have watched proudly as many franchise brands were deemed essential and adapted to the changing landscape to continue providing their services. Those franchise owners saw an opportunity to contribute to the economy and rose to the challenge.
For some enterprising entrepreneurs, this has been the perfect time to begin evaluating and strategizing their path to business ownership. But, the question that all of these aspiring business owners eventually get to is, “How do I pay for it?”
The CARES Act that was signed on March 27 has many avenues to provide capital to small business, though most of these funding vehicles are geared toward existing business owners. However, the SBA Debt Relief program within the bill applies to new borrowers.
Borrowers who apply, qualify and close on an SBA 7(a) loan between March 27, and September 27, 2020 (six months) will have the principal, interest, and fees paid by the SBA for a period of six months.
(Note: The eligibility requirements for an SBA 7(a) loan or SBA 7(a) Express loan remain the same. Only well-qualified borrowers are eligible.)
The incentive being offered by our government through this Debt Relief program is very clear! The president and Congress want aspiring small business owners to continue with their investigations and commitments to a new business. Even through this uncertainty, this is an exciting time for franchising, and everyone agrees there will be pent up demand for many business and service offerings once we come out the other side of this. Now is the time to get ready.
– Sherri Seiber
Sherri Seiber is the Chief Operating Officer for FranFund. She and her team are passionate about designing flexible funding plans that help new and experienced business owners fund their franchises, from single units through multi-unit expansions. For more information, contact Sherri at sseiber@franfund.com or visit franfund.com.