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Jessica Schwartz
Loan Expert Offers Four Tips For Starting A New Lawn Care Business
According to government data, Americans are starting new businesses at a greater rate than they have in over 10 years. And lawn care is a popular option because start-up costs are low and the business can be run from relatively anywhere. However, while a lawn care business is a good way to generate additional income (especially in times of peak demand, like the spring), entering into any new venture is no easy feat. For those considering launching a new lawn care business, taking into account the following key considerations will help set you up for success. 1. Anticipate Initial Hurdles. Many small businesses across industries fail during their inception years because of a few obstacles that could have easily been addressed at the outset – and these obstacles will always be the same, whether you’re starting a business during a pandemic or in more “normal” times. New lawn care business owners should aim to be more forward-looking and anticipate these hurdles by thinking about the three S’s of success: Structure Capital/Injection: Do you have the funds to get your business off the ground? If not, are you prepared to work with a financial partner to acquire a loan? If a loan is needed, you should prepare to show that you have at least 10% of the amount of the loan you’re taking in post-transaction liquidity. Support: Do you have the support of others in the lawn care industry who can review your concept, answer questions about developing a business plan, ...
Who Got What? PPP Funding Statistics By State So Far
Only 5.7% of small businesses across the U.S. got approved for funding in the initial round of loans from the Paycheck Protection Program, according to a recent report analyzing state numbers from business.org. Using the U.S. Small Business Administration’s (SBA) data, the organization divided the total number of small businesses in each state by the total number of PPP loans funded in each state. (It should be noted, the data does not reflect the actual number of PPP loan applications by state, or the actual dollar amounts awarded to each state.) Unfortunately, many states with larger populations of small businesses were left with a low percentage of loan approvals when the initial PPP funding of $349 billion was exhausted in just 14 days. The top 10 most financed states all have fewer than 500,000 small businesses, whereas many of the least financed states have millions of small businesses. Bottom 10 States For PPP Funding: Rank State Total number of small businesses Total loans funded Percentage of small businesses funded 51 California 4,000,000 112,967 2.80% 50 Nevada 270,079 8,674 3.20% 49 Arizona 571,495 19,280 3.40% 48 Florida 2,500,000 88,997 3.60% 47 New York 2,200,000 81,075 3.70% 46 New Jersey 884,049 33,519 3.80% 45 Washington DC 76,083 3,253 4.30% 44 North Carolina 913,398 39,520 4.30% 43 Maryland 594,124 26,068 4.40% 42 Georgia 1,100,000 48,332 4.40% For instance, of New York’s 2,200,ooo total small businesses, just 81,075 received loans, or 3.7 %. California received the lowest percentage of funding at just 2.8% ...
Getting An SBA Economic Injury Disaster Loan (EIDL)
Update On Thursday, April 16, 2020, the SBA announced a lapse in appropriations for the EIDL program related to COVID-19. From its website: “SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.” ——— Signed into law on March 6, the Coronavirus Preparedness and Response Supplemental Appropriations Act (CARES) expands the U.S. Small Business Administration’s (SBA) existing Economic Injury Disaster Loans, or EIDL program, to offer $7 billion in loans to small businesses impacted by COVID-19. The U.S. Chamber of Commerce offers the following guidance on the loan. General parameters for eligibility include: businesses with fewer than 500 employees; sole proprietors; independent contractors; cooperatives, ESOPs, and tribal small businesses; and most private non-profits. These loans may be used by small businesses to pay fixed debts, payroll, accounts payable, and additional bills that can’t be paid because of COVID-19’s impact. To provide immediate relief, SBA offers a $10,000 emergency grant designed to be available within three days of applying. (It should be noted: according to articles from Fast Company and The Wall Street Journal published April 7 and 8 respectively, of those who applied early last week when the application went live, many are still awaiting funds.) There is no obligation to repay the grant and it is not necessary to have an approved EIDL loan. ...
PPP (Paycheck Protection Program) Loans For Small Businesses Affected By Pandemic
Last week, the U.S. Small Business Administration (SBA) launched the Paycheck Protection Program, or PPP, a $349 billion emergency loan program created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES). The PPP provides forgivable loans up to $10 million to small businesses left financially distressed by the COVID-19 pandemic and are administered at the local level by a national network of banks and credit unions. To find a lender, click here. The loans, which are 100% backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests. Those eligible for the program include small businesses with fewer than 500 employees, self-employed individuals, independent contractors, certain non-profits, veterans’ organizations, and other businesses meeting size standards based on their North American Industry Classification System code. The PPP will be available through June 30, 2020, though the government is advising borrowers to apply as soon as possible due to a loan cap. (As of this writing, the PPP loan commitments reportedly already exceed the available funds by 10%, according to the U.S. Chamber Of Commerce. On the same day, President Trump addressed the issue at a briefing with members of the White House Coronavirus Task Force and said he is asking Congress to provide an additional $250 billion for the PPP, reported the USCOC.) “We urge every struggling small business to take advantage of this unprecedented federal resource – their viability is critically important to their employees, their community, and ...
