Nevada Bankers Association
Encourages small businesses impacted by COVID-19 to apply for federal aid, including the new Paycheck Protection Program. Learn more about the program. Additionally, the NBA is offering the following five recommendations that local businesses can do right now:
- Talk to your lender, if you haven't already. If you are experiencing or expect to experience cash flow problems, contacting your lender is the critical first step.
- Plan for the next three to six months, if you haven't already. Many businesses have sufficient funds or access to capital for a few months. But since it's not clear how long this public health and economic crisis will last, it's important to look ahead, preparing for the crisis to potentially last longer than originally anticipated and to help your business recover and re-open if it is currently closed.
- Be ready to produce required information quickly to help your lender with your application. All loan programs still require some financial information in order for lenders to underwrite loans, including loan programs like the PPP initiative created through the federal CARES Act. Be ready to produce required documentation quickly to help your lender with your application.
- Don't panic and draw on lines of credit unnecessarily. Unlike during the Great Recession more than a decade ago, federal and industry leaders say there is plenty of liquidity in the nation's financial system, so don't panic and draw on lines of credit unnecessarily. Just as NBA and others are encouraging consumers to keep excess cash in insured financial institutions, NBA suggests businesses keep their lines of credit intact until they absolutely need to access them. "There may be costs associated with accessing those funds," Gurgevich explained. "So if you don't need to incur that added expense, don't."
- Have patience. The banking industry wants to help people and businesses through these unprecedented times, but not all programs are up and running just yet. And even when they are, Gurgevich said intense demand and new programs and technologies can cause delays, from overloaded staff to newly created systems and websites crashing.