FareHarbor has partnered with Lendio for clients that may be seeking financial assistance as a result of the Coronavirus Pandemic. Lendio has expertise in working with lenders across the United States to get Small Businesses access to the capital they need.
Note: FareHarbor is providing the following information as a resource to help guide your business during this crisis. Before taking a grant or a loan, it is advisable to consult with with Lendio directly. This information is not intended to be direct advice of any kind.
Should I apply for a loan?
There are many loan options available, now including the CARES (Coronavirus Aid, Relief, and Economic Security) Act which has recently been approved by the United States Government. Before you jump into applying for financial support, it is important to remember that you will need to pay back this money should you not be eligible to convert this loan to a grant longer-term. A loan today for the same expenses that you have incurred previously could affect your cash flow long-term, especially if you anticipate lower volumes than your typical season.
This article from Harvard Business Journal gives great information on some initial steps to take in response to COVID-19.
Carefully review your current situation to evaluate if there are alternative solutions for your business. Talk to your fellow tour operators for advice, your accountant and/or lawyer and, if you are a FareHarbor client, review Compass for actions that you can take to improve your online presence and receive more bookings as soon as possible. If, after looking at your financial situation and cutting unnecessary costs you still are in a dire financial position, consider applying for a loan.
In addition, it is important to evaluate any loans that you have taken out in the past and other loan prerequisites to ensure that you will qualify. See “How do I apply for a loan?” for more information.
What type of loan should I apply for?
In response to the Coronavirus Pandemic and its effects on the economy, the United States Government passed the CARES Act (includes Paycheck Protection Program and Economic Injury Disaster Loan) that includes $350 billion to support small businesses during this time. The program has expanded beyond the typical definition of “small businesses” to include Independent Contractors and Sole Proprietors.
Small businesses will be able to borrow money for a variety of qualified costs related to employee compensation and benefits, including:
(i) paycheck costs
(ii) continuation of health care benefits
(iii) employee compensation (of those making less than $100K)
(iv) mortgage interest obligations
(vii) interest on debt incurred before the covered period
To learn about eligibility, click here for information compiled by our new partner, Lendio.
How do I apply for a loan?
FareHarbor Partners with Lendio
FareHarbor partners with Lendio to streamline loan applications. Lendio uses a proprietary algorithm to match small businesses with loan options from a nationwide network of esteemed lenders. Lendio helps small business owners with a tailored hands on approach to expedite the loan process.