As prepared as we may think we are, emergencies and disasters can come out of nowhere and have a significant impact on our business physically or economically. Whether affected directly or indirectly, the business will most likely see a decline in sales, which will ultimately disrupt the course of business.
When struck with a natural disaster, it’s hard to know where to being with recovery. An important first step you can take for your business is to determine the financial position of the business. Is the business even capable of reopening? If so, where can you find financing that will assist you in doing so?
SBA Disaster loans are specifically designed for financing businesses suffering from a physical or economical disaster. There are two types of SBA disaster loans, each specific to the nature of the damage.
Types of SBA Disaster Loans:
- Business Physical Disaster Loan, which is generally used for funding repairs or replacing, damaged business property, including inventory.
- Economic Injury Disaster Loan (EIDL), which produce working capital to help small businesses through a disaster recovery period.
How to Apply For an SBA Disaster Loan:
- Before considering a disaster loan option, the location and area of your business must be declared as a “disaster area” by a government official and followed up by FEMA’s (the Federal Emergency Management Administration) verification.
- The first step in receiving help with recovery costs is through applying for FEMA disaster assistance online.
- After receiving aid from FEMA, you business can be assessed for financing the rest of the damage and recovery costs through the SBA.
- Once the damage of your business has been assessed, here are the Documents you will need to read through and fill out before submitting to Gold Beacon Capital Corp for help obtaining an SBA disaster loan:
- Disaster Business Loan Application
- Copies of the Businesses 3 most recent income tax returns
- Business balance sheet with current profit and loss statement
- Current listing of the business’s liabilities
- Recent personal financial statement
- If applying for an Economic Injury Disaster Loan, also complete This Form
Gold Beacon Capital Corp’s Advice For Further Recovery:
-Continue to generate regular cash flow forecasts in order to budget your financing and prevent more debt.
-Evaluate cash cycle frequently to make sure your business is on budget
-Keep in contact with your customers frequently; in order to cut down on the time you spend waiting on the businesses accounts receivables to be paid.
For more information and resources on how Gold Beacon can help finance your business, contact us today!