What to Do If Your Business Does Not Qualify for Coronavirus relief loan
Unfortunately, some small businesses may not qualify for an Economic Injury Disaster Loan (EIDL) or a Paycheck Protection Program (PPP) loan due to limited availability and eligibility requirements. However, there are still ways to drive revenue for your business during the coronavirus pandemic.
Here are six ways your small business can keep making revenue if you don’t qualify for a coronavirus relief loan:
Check for state and local small business assistance programs and exemptions.
Your city or state may have created assistance programs or exemptions to help with financial impacts during this pandemic. Many states have established small business loan assistance programs and even extended income tax filing deadlines, paused evictions or more. Check the Innovative Lending Platform Association (ILPA) for a compiled list of state and local government assistance programs exemptions.
Sell gift certificates.
A quick way to get immediate revenue is to sell gift cards or certificates for future use. Fortunately, Kabbage has made it easy for your business to sell gift certificates if your business doesn’t already.
Through Kabbage Payments™, anyone can search for businesses throughout the U.S. and purchase gift certificates to support their favorite businesses. Kabbage’s partnership with Facebook and Instagram promotes these certificates across the platforms, so small business supporters may even find new businesses they’d like to support from other states. They can use certificates for themselves or give them to friends and family to redeem locally.
Instagram has added new buttons and stickers to encourage gift card purchases, fundraiser donations and deliveries from third-party apps. Set up your links to your preferred delivery partner, gift certificate page and fundraiser so your loyal customers can repost on their own stories and hopefully earn you new ones.
Update your business model.
Now might be the time to add new services to your business model. Consider selling products online, offering takeout or delivery, trying to add products that are in high demand, and more. By adapting to the current situation, you build customer loyalty by ensuring customers that you can still offer what they want or need.
Right now, almost everyone is worried about finances. Creating special offers on your products or services will incentivize your existing customers to keep shopping with you. Offering temporary discounts and promotions are also a smart way to build a base of new customers to offset slower sales. When things settle down, you can work to convert those new customers into full-price, loyal customers.
Consider taking donations.
Many small businesses have started Go Fund Me campaigns to not only help their businesses but to ensure their employees still have a source of income should they be temporarily out of work. While crowdsourcing isn’t always the foolproof method to gaining revenue, more people are willing to help during these trying times if they can. Promote your Go Fund Me to family, friends and loyal patrons, and make sure, you describe what the funds will be used for: to cover operation costs, employee costs, etc.
Crowd source with NASAA.
The North American Securities Administrators Association (NASAA) offers intrastate crowdfunding resources for small businesses. Small businesses and start-ups can crowdfund to entice investors who will provide the necessary capital to help their business succeed. The amount of funds a business can raise as well as individual investment limits are determined by each state’s crowdfunding laws, so make sure to research those to get a realistic idea of how much you can potentially raise.
Even if your small business doesn’t qualify for either EIDLs or the PPP loans, there are still unique ways to gain revenue during these unprecedented times. Hopefully with these six methods, you can keep operations running on even a basic level so your business can come back and thrive as time goes on and the situation improves.