Small Business Advice as The COVID-19 Pandemic Begins to Slow

by Startacus Admin

As we slowly emerge from the pandemic, here is an overview of a few of the key things that you can do to help set the foundation for a stronger year ahead

Though we are not out of the clear yet, there are many reasons to be hopeful that Spring 2021 can bring our books back into the black. The weather is getting warmer, vaccinations are on the rise, and consumers can practice what many of us call the “new” normal.

What are some actionable things you can do right now to help set the foundation for a strong Q2 and beyond?

Talk to Your Landlord About How They Will Approach COVID Relief Measures throughout 2021 

Landlords generally want you to succeed because when you do well, they do well. This pandemic has come down hard on nearly every sector, so a healthy conversation where you openly discuss your financial situation can help get you and your landlord on the same page. You may be able to reach an amicable agreement or renegotiate part or all of the lease.

According to FNRP, a commercial real estate investing group, the importance of a well-negotiated lease can not be understated. In that vein, revisiting the parameters of the lease to account for unforeseen circumstances - a global pandemic, for example - is ethical and necessary for maintaining a healthy relationship between landlord and tenant. Renegotiating who pays for maintenance and repairs or a split-cost solution might be the key to ensuring that both the business and the landlord stay afloat. 

Learn About the Most Recent Legislation Regarding Stimulus for Small Businesses

In the UK, the government has provided a range of financial support measures for businesses as they navigate through and emerge from the pandemic.

External organisations and support bodies have also produced additional resources to help support UK-based businesses of all sizes and in all sectors.

In the US, President Joe Biden signed the American Rescue Plan Act (ARPA) on March 11, 2021. This legislation not only extends much of the initial funding from the previous administration’s legislation but also adds some new opportunities for struggling businesses to acquire much-needed financial relief.

Here are some of the new opportunities:

Restaurant Revitalization Fund (RRF)

These grants amount to a total of $28.6 billion in relief. Based on lost revenue, individual restaurants and bars can receive up to $5 million, with restaurant management groups (who manage no more than 20 restaurants receiving up to $10.

Restaurant owners should be prepared to apply when the application window goes live, which will be later this year. If you are a restaurant owner, talk with your accountant and get ready to show revenue loss in 2020 as compared to 2019.

Note - since these are federal grants and not PPP loans, the application will differ significantly from PPP loans.

Shuttered Venue Operators (SVO) Grant

Though this grant was passed in 2020 at the end of December, it has not yet gone live. The recent ARPA has made changes that will allow for more aid to reach venue operators, museums, and movie theaters.

Before the ARPA changes, applicants for the SVO grant could not apply for PPP loans. With the amendments, recipients of the SVO grant can also apply for PPP loans.

Extensions for the Employee Retention Tax Credit (ERTC) and PPP Loans

These measures enacted under the Trump administration will see an extension into 2021 and perhaps beyond, depending on the scope and trajectory of our economic recovery.

The new legislation also allows for independent contractors and sole proprietors to apply for PPP loans, which were previously unavailable to them.

Recovery and Revitalization

As we adjust to the new normal and prepare for the Spring and Summer months ahead, it is vital to know what options are available to us as business owners. Though 2020 was indeed rough, and 2021 will by no means return us to a pre-COVID world, there are reasons to be hopeful that we can regain at least some sense of normalcy in the quarters ahead.

About the Author

Veronica Baxter is a writer, blogger, and legal assistant operating out of the greater Philadelphia area.

 

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Published on: 6th April 2021