The unprecedented response to the threat of COVID-19 has changed and challenged our lives in so many ways. If you’re a business owner, you are dealing with the added worry of maintaining your business – not to mention minimizing the impact on employees if you have them.
How can small business owners survive the financial impact of the coronavirus?
Entrepreneur provides tips for helping your business survive including:
- Evaluate business spending: Look at how you spend money on vendors, advertising and other line items to see if they could be optimized.
- Look into local programs: Check with your local legislators to see what support is available for small business owners.
- Don’t overlook mental support: The pandemic has taken a toll on many people’s mental wellbeing. Make sure you and your staff have the needed support: that can include supporting each other and opening lines of communication.
Here are more actions you can take to safeguard your business, according to the U.S. Chamber of Commerce.
In addition, here are five tips for protecting your business financially during this challenging time from business law firm Brouse McDowell.
Other Resources for Small Business Owners
Financial Help and Other Help for Small Businesses
Here are links to additional resources for loans and grants:
Relief May Come from Your Retirement Account: CARES Act
Along with the stimulus checks that are being sent to many Americans, the CARES Act allows for changes to retirement account rules for 2020. You or your employees may be eligible for hardship distributions, penalty waivers, or other relief as part of the changes.
Read more about the CARES act and retirement accounts
Another Potential Source of Small Business Loans or Other Investments in Your Business: Other People’s Retirement Accounts
It’s possible that people you know with retirement accounts could help provide your business with some financial help. Anyone who has money sitting in a retirement account could potentially help a small business, either with a loan or by investing in a business.
Through a self-directed IRA, it is possible to provide promissory notes or invest in private businesses. Many investors don’t realize there’s a wide variety of options when it comes to investing with a retirement account – in fact, the IRS lists only a handful of investments that aren’t permitted in an IRA.
The investor would need to open an account with a self-directed account custodian such as Equity Trust.
Learn more about private lending with an IRA.
Learn more about investing in private entities with a self-directed IRA.
Learn more about permissible and prohibited investment options under self-directed rules and regulations.
More COVID-19 Resources
Visit our COVID-19 Resource Center for more helpful information about coping with this pandemic.
