Accion Opportunity Fund is committed to supporting small business owners that are facing challenges due to emergency situations. If you are a business owner whose business has been impacted by an emergency- be it global, local, environmental, or personal, including the recent wildfires in LA- we are here to help. Check out our small business emergency resources below.

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If you are an existing loan customer who has been impacted by an emergency situation and are concerned about missing a loan payment:

Contact us at 877-629-2709 or paymentsupport@aofund.org

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We recognize that this is a difficult time for you, your family, and your business. We are committed to providing you with the best support to all aspects of your business through this crisis and beyond. 

Resources for Business Owners Impacted by the Wildfires in Southern California

AOF is supporting small business owners in Southern California through the Rebuild Southern California Small Business Relief Fund.

Grants and Funds

• LA Area Chamber of Commerce Small Business Relief Fund: In response to the wildfire disaster, the LA Chamber Foundation has launched the Small Business Disaster Recovery Fund. The Los Angeles Area Chamber of Commerce’s Small Business Disaster Recovery Fund application will open on February 3, 2025. The program is designed to assist small businesses affected by the 2025 Palisades and Eaton wildfires.
• LiftFund Grant Program: LiftFund has launched a $250,000 grant program to support small business recovery. Eligible businesses can apply for up to $5,000 in immediate financial assistance to help rebuild and restore operations. This program is designed to provide critical relief to business owners affected by the disaster, ensuring they have the resources needed to recover and sustain their livelihoods.
• Small Business Relief Fund: The County and City of Los Angeles have launched the LA Region Small Business Relief Fund to support businesses and nonprofits affected by wildfires and windstorms. Eligible organizations with up to $6 million in revenue and fewer than 100 employees can apply for grants ranging from $2,000 to $25,000. This fund provides crucial financial aid to help businesses recover, rebuild, and sustain operations. The application is open now through March 12, 2025, at 5pm.

Resources

• Climate Resources for US Makers: Nest offers emergency resources to creative entrepreneurs and artisans who produce handmade or small-batch goods, affected by climate-related challenges. These resources include tools and information to help protect your small business and respond quickly to disasters.
• SBA California Wildfires Resources: The SBA provides emergency resources to businesses of all sizes impacted by the LA wildfires and winds in California, including disaster relief loans. También disponible en Español, a través de la función de traducción.
• City of LA Economic & Workforce Development Department: In response to the devastating LA wildfires, the LA EWDD has identified and shared many resources available to businesses and workers as recovery and rebuilding efforts begin. También disponible en Español, a través de la función de traducción.
• LA Regional Small Business Legal Aid Program: Free Legal Help for Los Angeles Region’s Small Business Owners. Provided by The County of Los Angeles Department of Economic Opportunity (DEO), the City of Los Angeles Economic and Workforce Development Department (EWDD), Bet Tzedek Legal Services, and Public Counsel.
• CAMEO California Wildfires Relief Business Resources: CAMEO, California’s statewide micro-business network, has compiled a directory of dozens of local and federal resources for businesses and nonprofits impacted by LA wildfires. Se incluye recursos en Español.
• California Tax Relief For Businesses Impacted by Los Angeles Wildfires: Per the Governor’s office, the state of California is providing tax relief and extensions to individuals and businesses impacted by the LA wildfires. También disponible en Español, a través de la función de traducción.
• Wildfire Business Resource Directory: Get updates on the current wildfire situation in LA and access resources for business recovery. También disponible en Español, a través de la función de traducción.
• Legal Help After a Disaster | State Bar of California: Key resources that provide legal assistance and support during disaster recovery, including the California Wildfires. También disponible en Español, a través de la función de traducción.

AOF Small Business Emergency Resources

We offer many resources to support business owners in all aspects of their business. We are pleased to share our small business emergency resources to keep entrepreneurs informed about emergency management topics for small business owners and best practices during this difficult time.

Emergency Resources

• Managing Small Business Cash on Hand During Emergencies: Learn best practices on managing cash on hand during emergencies.
• Where Can I Get Emergency Funds for My Business?: Explore your options for covering cash needs when your business is suddenly strapped for cash, helping you navigate tough times until things stabilize.

Long Term business Recovery

• Revising Your Business Plan for Recovery: Revise your business plans to adapt to the challenges posed by any disaster, including wildfires, ensuring a clear path to recovery and long-term success in the aftermath of disaster.
• Weather Any Storm: Developing Business Resiliency: This link will help business owners navigate the challenges of LA wildfires by providing strategies to protect operations, ensure continuity, and promote long-term resilience.
• Business Continuity Plan: How to Stay Open During a Natural Disaster: Create or refine your business continuity plan to ensure you can recover quickly after a wildfire, staying open and operational even during the most challenging circumstances.
• Estrategias para reconstruir y operar su negocio: Se describe los pasos que debemos tomar para poder reconstruir y volver a operar nuestro negocio en una plataforma sólida para tener éxito.

General Business Resources

• AOF Business Resource Library: Review our business resource library, filled with resources sourced from experts and experienced business owners.
• Free Business Advising: Connect with one of our certified business advisors to get your questions answered and craft a recovery plan for your business.
• AOF Newsletter: Sign up for our newsletter to be the first to hear about our latest educational resources, including webinars. They are always free!

Trusted Partner Resources

• Start Small Think Big: Pro bono remote legal assistance clinic.
• Small Business Majority: National small business organization that empowers entrepreneurs.

Updated March 10, 2025.

Accion Opportunity Fund is committed to supporting small businesses that are financially struggling due to emergency situations. If you are a business owner whose business has been impacted by personal or environmental emergency situations, check out our emergency resources for small business owners.

• If you are an existing loan customer who has been impacted by an emergency situation and are concerned about missing a loan payment:
  • Contact us at 877-629-2709 or paymentsupport@aofund.org

We understand that this is a very difficult time for you, your family, and your business. We are committed to providing you with the best customer service through this crisis and beyond. 

Educational Resources

We are pleased to offer many educational resources to keep entrepreneurs informed about emergency management topics for small business owners and best practices during this difficult time.

• Click here to review our business management resources, sourced from experts and experienced business owners.
• Sign up for our newsletter to be the first to hear about our latest educational resources, including webinars. They are always free!

Business Advising and Support Resources

(Offered for free in partnership with Accion Opportunity Fund)

Trusted Partner Resources

• Start Small Think Big: pro bono remote legal assistance clinic
• Small Business Majority: national small business organization that empowers entrepreneurs
  • Daily Updates for Small Businesses 
• SpringFour: online directory of trusted resources
  • Find local support for childcare, utility costs, rental assistance, and so much more
• Inner City Capital Connections: free leadership training program for business owners
  • Learn more and apply for the program’s local cohort near you

Resources for California Business Owners

• PPE Unite: free PPE for LA County small businesses
  • The Los Angeles SBDC Network, LA County, Cal OES, Go-BIZ and VSEDC have partnered to launch PPE Unite
• Cal Coastal Small Business Development Center: New Loan Fund in Monterey County
  • Emergency loan fund and microloan programs for Monterey County and City of Salinas

• Los talleres en español: 
  • Introducción a los impuestos para pequeñas empresas
  • Estrategias para Reconstruir y Operar su Negocio
  • Las Redes Sociales y Marketing Digital 
  • La importancia de enfocarnos en nuestras finanzas

MOBI (My Own Business Institute): Looking to earn a university certificate this year?

MOBI is the world’s leading provider of free online education entrepreneurs. There are two ways to learn:

1. Enroll: Choose among three entrepreneur courses and earn a Certificate of Completion in just 20 hours from Santa Clara University. 
2. Browse: 35 topics to find answers to your most immediate business questions. 

Start courses here!

Watch Our Webinar Recording on Preparing to Access Capital

Set yourself up for business success

In this webinar, presented in partnership with Accion Opportunity Fund (AOF) and Fifth Third Bank, lending experts Shanna McLearn, Director of Working Capital and Community Partnerships at AOF; Adriana Williams, Partnerships Manager at AOF; and Juan Guevara, Small Business Community Lender, from Fifth Third Bank, share important details about accessing capital for your small business. The presenters will walk you through not only how to make sure your business is ready for an influx of capital, but also how to evaluate various capital options and find the best fit for your situation.

Whether you’re looking to stabilize your business or exploring growth opportunities, an injection of capital could be exactly what you need. This presentation covers three key steps to preparing to access capital in the form of loans: formalizing business finances, exploring funding options that match your business needs, and preparing for the application process.

 

Topics discussed in this webinar include:

• 3 critical financial documents for small businesses: profit and loss, cash flow statement, and balance sheet
• Alternative (non-bank) lenders
• Questions to ask your lender before you agree to a loan
• Avoiding predatory lending
• What to consider when evaluating a loan
• How lenders evaluate your income, debt, and cash when determining the terms of your loan
• How lenders evaluate your credit score, collateral, and connections when determining the terms of your loan
• The supporting documents commonly required by lenders as part of your loan application
• The benefits of forming a relationship with a financial institution
• Community Development Financial Institutions like Accion Opportunity Fund
• Banks with strong small business lending programs like Fifth Third Bank

Learn more about Accion Opportunity Fund and how we help could help your company with a small business loan.

Explore Our Business Loan Solutions for SMEs

In this webinar, presented by the California Hispanic Chamber of Commerce and in collaboration with Accion Opportunity Fund, Yacanex Posadas of Yacanex Business Group goes over common misconceptions about business taxes and what you can do throughout the year to make filing your business taxes a smooth process. Yacanex clarifies that you only pay taxes on your Profit (Profit = Sales- Expenses). You need to be able to justify your expenses, so be sure to keep track of all your expenses so you can deduct them! Most businesses will fill out and file a Form 1040 and a Schedule C for their business taxes. 

This article was written in 2021 for the 2021 tax year. Information may not be updated for the current tax year. For the most relevant tax information, please consult with your tax professional.

Some of the small business tax tips that Yacanex discusses is: 

• Be sure to pay people with checks, not cash so you can appropriately deduct payroll and expenses from your taxes. 
• Separate your business and personal checking accounts, especially if you are a sole proprietor. 
• Common deductions: 
  • Marketing expenses (t-shirts, mail chimp, social media management subscriptions) 
  • Vehicle Milage (Apps like Mile IQ make it easy for you to keep track of business milage) 
  • Bank Fees 
  • Employees 
  • Education 
  • Permits 
  • Cellphone 
  • Website 
  • Business Debt Interest 
  • Forgiven PPP Loans (if 60% of the funds are used for payroll) 
  • If you use utilities, phones, or vehicles for both personal and business use, you can only deduct the percent of the utility that you use for business. 
• Recommended Bookkeeping Tools: 
  • Excel (if you are low volume only) 
  • Xero 
  • Freshbooks 
  • Sage 
  • Quickbooks 

Vice President of Business Banking, Jack Mohr, and Vice President of Small Business Community Lending, Karl Riley, of Fifth Third Bank share best practices to help you budget and forecast revenues for your small business during the uncertain economy caused by COVID-19. Many business owners are struggling with the rapid and sudden loss of stable revenues, but it is important to remain optimistic and nimble when managing your current revenues and planning for future revenue sources. Strategic budgeting and forecasting in this changing landscape must include awareness of your current finances and the flexibility to adapt your business models to uncertain economic times. 

 

 

Re-Projecting Revenues: When and How Often

Due to the economic repercussions of the pandemic, revenues in 2020 and 2021 will not match earlier projections for most business owners. Mohr recommends re-projecting revenues more frequently during uncertain economic times. Projecting revenues, expenses, and income statements on a weekly basis allow you to be more flexible when adjusting to an uncertain economy. Riley suggests developing a relationship with a CPA (Certified Public Accountant) or keeping close track of your finances by using accounting software like QuickBooks. Developing multiple projections for different economic scenarios will give you a financial roadmap to follow no matter what comes next. 

Cutting Costs vs New Income Sources

All businesses have been impacted by the pandemic, but service industries, like restaurants and salons, have been especially hard-hit. When faced with the choice of cutting costs or pursuing new sources of income, it can be challenging to know what to focus on first. Riley says keeping lines of communication open with your employees and business advisors is more important than ever. That way, you and your team can respond quickly to changing circumstances. In the era of sanitizing and PPE, in has been challenging for many businesses to cut costs. Mohr recommends getting creative when considering how to cut costs, while also pursuing new sources of income.  

 

To cut costs, you must first prioritize your expenses into needs that you must pay for, like rent and inventory, and wants, like new décor for a shop.  

 

Considering how you can pivot your business to fit the current times might involve transitioning from in-person services to delivery services, cashiers to personal-shoppers, or manicures to DIY kits with instructions and video–chat support. Creativity and knowledge of your current finances are both keys to successfully cutting costs and simultaneously developing new income sources. 

Outside Sources of Capital (Loans)

When should a small business owner consider seeking outside sources of capital, like loans? Outside capital can be a pro and a con at the same time. Mohr points out that the pro is the infusion of money you get, but the cons can be the cost of the capital, like paying back a loan plus interest or giving up some ownership shares of the business to an investor. Weighing the potential benefits and the costs over both the short term and the long term will help you make the best decision for your business. Riley reminds us that having a good understanding of your finances, through cash flow statements and income statements, is helpful when applying for a loan.  

Changing Business Models

Tips for Adapting to COVID restrictions:

• Protect your people and your customers by operating remotely, if possible, or supplying PPE and implementing social distancing.
• Consider if adjustments will be temporary, like the need to social distance, or long-term. Invest your time and resources accordingly.
• Changing your business model does not necessarily mean increasing your costs. Costs could stay the same or even decrease. For example, many real estate agents are hosting virtual tours. While they have a small cost to their online hosting platform, they no longer incur the greater cost of hosting in-person open houses.
• Creativity and flexibility are key to business success during the current times.
• Remain open to what your customers are willing and able to do, so you can meet their needs.

What Does the Future Hold?

No one has a crystal ball, but Riley believes that the next 6 months will continue to have lower revenues. Mohr adds that the return to normal revenues will be slow, but there will be a steady increase back to pre-pandemic levels. Consider developing two different revenue models, one with a more positive outlook and one with a more conservative forecast. This can help you respond more effectively to the economic situation in your local area as challenges arise.  

When deciding to reopen a business, small business owners might feel confused or overwhelmed at first, wondering how to best adjust business operations to include COVID-19 regulations. To help wade through the confusion, we interviewed Jennifer Palmer, owner of Nourishing Journey organic café and wellness center in Columbia, MD.

Where to Find COVID-19 Business Regulations by State

The first thing all small business owners need to know is that it is important to look up the regulations for your state and your industry. This will form the basis of your personalized operating plan to accommodate COVID-19 regulations. There is no cookie-cutter, one-size-fits-all approach, unfortunately. All business owners will need to research these answers for themselves based on their locality and industry. The good news is, the information is out there and easily accessible for the most part!

About how she figured out rules, regulations, and guidelines for reopening her small business, Palmer says, “The first thing I did was look up the guidelines on the state and county websites for businesses opening back up.” When looking for these regulations for your own business, you can check the state-by-state reopening guidance on the U.S. Chamber of Commerce website. You can also find your specific state’s website on USA.gov and find out what your state’s COVID business reopening guidelines are that way.

Palmer continues, “Then I had to look for additional guidelines for the café and for our practitioners in the wellness center. We have so many different practitioners that we have many different guidelines we had to look at. Some practitioners had a lot of very specific needs based on their industry guidelines and others could just follow basic guidelines for the state and county. I had to gather up the recommendations and figure out what made most sense given we have a public space with the café and a wellness center seeing one-on one-clients, which complicated some of the decisions we needed to make.”

Adjust Business Operations to Include COVID-19 Regulations

The changes you make to your own operations will be affected by your individual state guidelines, plus any extra guidelines your specific industry might have. For example, mask mandates vary by state. And cleaning and sanitizing procedures will vary by industry. An office building with very little foot traffic and almost no exposure to the public will have very different sanitation procedures than an eatery or a nail salon.

Palmer’s business hosts practitioners and staff from many different industries—from medical and physical therapy professionals to spiritual counselors and energy healers, to a thriving café and gift shop. Of handling and yielding to all of these different regulations within one business, Palmer says, “We have people coming in off of the street for the café with the same entrance as people coming in for the wellness center. We have to be mindful of capacity and social distancing and needed to develop a plan for how to manage that. We had to add signs to the entranceway explaining mask guidelines, keeping distance between each other, not coming in if you’re sick, waiting outside if you are visiting for a wellness appointment, and also our new limited hours.”

As for specific changes she had to make to her business’s operating procedures, Palmer says, “We needed to figure out appropriate signage, handling traffic, taking temperatures, asking patients and clients to wash hands, cleaning rooms thoroughly and appropriately, and tracking everything that we are doing. We’ve also had to worry about how to make sure our clients know our procedures and guidelines so that they are prepared for when they come in.

“For the wellness center staff and administrative staff, we had different things to worry about. Usually, clients would just come in and fill out their paperwork and wait for the practitioner. Now the client stays in the car and texts the practitioner when they arrive, and the practitioner has to text the client back and let them know when they can come in. Upon walking in the door, all clients immediately have to get their temperature taken, wash their hands, sign a special COVID release form, make sure they have their mask on, and then go back to the session room.”

COVID Business Operating Procedures: Communication and Training

As for how to communicate your new operating plans with your staff, this will vary depending on your business, the people who work for you, and how they best receive communications. Palmer says of her staff, “For the café, some of my staff does not check email. With them I texted and they were more than happy to jump on board and start working again.”

When it came to informing and training the staff who help keep Palmer’s business running smoothly with the new regulations in place, Palmer says, “I just had to show them we needed to be done and some of the changes in procedures. For example, laundry had to be done differently and the clean laundry would be kept in a different place than the dirty laundry to make sure there was no possibility of cross-contamination. Also, we had to consider things like how often we would wipe down commonly touched surfaces.”

Challenges to Reopening Safely

When asked what some of the biggest challenges are that Palmer has faced, she says, “I think the hardest part about opening back up has been remembering every single new procedure that must be done to meet the regulatory guidelines. Also having to wear the mask all the time has been difficult. Many do not feel well having a mask on for long periods. Breathing in carbon dioxide is not good for anyone at this level of exposure and it has given people issues with feeling like they’re not getting enough oxygen. So we’ve had to get creative with ways that staff can find breaks to take off their mask. The staff knows that they can go into a back room and take off the mask to breathe for a minute or two and then come back out.

“Overall some of the biggest challenges we’ve had have been around balancing everybody’s needs. Some clients are very scared of the virus and some aren’t at all scared of the virus. Some practitioners have very strict guidelines in order to practice and some don’t. Mixing all of the needs together and trying to keep everybody happy and comfortable has been one of our biggest concerns and is an ongoing concern. We want to make sure everybody knows we are keeping our space clean, safe, and open for business while also still having the spa-like feel to the appointment.”

Remember Why You Are in Business

As you go through what might be a difficult time, it’s important to remember why you went into business in the first place. Many business owners have good hearts and want to change their clients’ and customers’ lives for the better. Remembering this might help keep you motivated through challenges so you can get past the tough times and thrive in business.

When planning your reopening post COVID-19 shutdown, there are some key small business budgeting and financing strategies you can use to help your business thrive and succeed during the nation’s economic recovery. For this article, we interviewed Jennifer Palmer, owner of Nourishing Journey, an organic café and wellness center in Columbia, MD. Here is what you need to know.

Financing and Revenue

When reopening your business following the COVID-19 shutdown, revenue projections may seem uncertain. This can make estimating cash flow and meeting expenses difficult to foresee and maneuver. Before developing an operating plan, Palmer recommends making your best guess at revised revenue expectations during this time when businesses are open but still restricted.

Palmer says, “I made a rough revenue estimate as to what I thought we might bring in for the café and then also separately for the wellness center. I estimated about 50% of revenue compared to what we had brought in before we had to shut down and was pretty accurate with that. I figured it was a good place to start. If I brought in more money than that, then I would be ahead of the game. If I brought in more money than 50% of our pre-COVID shutdown revenues, then I could also extend hours and grow into more of a presence like we used to have.”

When asked how she determined her revenue estimates, Palmer says, “Part of what went into my decision was determining how many people would partake of our services and food. Some people don’t want to leave home or come in contact with others yet. Other people can’t wait to get out of the house. Once deciding what I need to do to provide for a safe reopening, I had a little more insight as to a good guess for revenue.”

Once you have an idea of what to expect in terms of revised revenue projections, it’s time to secure additional financing in the form of loans and grants. Palmer says, “The first place to start is with your bank. I’ve also applied for grants from my state and federal, as well as some private grants for businesses. I first approached my bank, then applied for an SBA loan and grant and other grants as well. Most did not come through because there were so many people who applied. I was glad that I applied for as many as I did so that I got something to support the business. Talking to the manager at my bank was very helpful. And I was able to navigate it more easily than if I would’ve done it alone. The bank made applying for the SBA PPP loan and extending my credit quick and easy with little information needed for the application process. Whenever I had a question, they had answers within an hour.”

How to Cut Operating Expenses

When creating a new operating plan, there are changes you can make to open in a budget-friendly way, such as limiting staffing. For a brick-and-mortar store or restaurant with foot traffic, you will need to decide what hours you want to open, possibly on a downwardly-revised schedule. You might also choose to cut back on inventory or eliminate offering certain food items that might not sell well so you don’t have waste or spoilage.

Palmer says of her experience, “My plan was to go as lean as possible and then work our way up with staff as needed. We shortened our opening hours and limited our staff hours. Instead of having administrative hours during our normal operating hours, they were shortened to four hours a day. Also, in our café, we only have one person working a shift at a time instead of two. Service may be a little bit slower in the café, but everybody is really understanding and just happy to get their smoothie. There were a couple of items in the café that we decided not to sell as well. So we took those less-desired items off of the menu for now. This way we wouldn’t be wasting money if we didn’t sell.

When asked how she made these decisions, Palmer says, “I considered the expense of the hours open and opened with limited hours. I scaled down the administrative and café service hours to as little as possible considering the circumstances. We didn’t need administrative staff all day long, being that we weren’t as busy. This allowed us to open with a budget-friendly approach. Also, with all of this, I had to consider what I could pay them for the hours needed in contrast to what they were currently bringing in with unemployment. I did not want my staff to be bringing in less money than they were before the shutdown. Luckily, it worked out well and I was able to bring back most people with altered schedules.”

In terms of areas in her budget that she chose not to skimp, Palmer says it was important to fill the shelves of the gift shop located within Nourishing Journey’s café. She says, “When we opened, I knew I needed to stock the shelves in the store. The last thing people want to see when they come into the store is empty shelves, especially during these times. So I did spend a little extra money bringing in items that I thought would sell.”

As for advice to other business owners trying to figure out how to budget upon reopening, Palmer advises, “Remember why you were in business. Make sure you are offering what made your business successful to the fullest of your ability.”

Final Thoughts and Considerations

When asked what final thoughts and considerations Palmer wants to offer business owners about budgeting and finances in the time of COVID-19 restrictions, she says, “Just make sure to take advantage of all grants and approach your business reopening as if you were going to be successful, regardless of COVID-19 issues. Reach out to your customer base and offer support, while also encouraging them to support you and other local businesses.”

Many small business owners have been going through a difficult time. Across the country, many businesses are struggling to recover financially due to the many-month-long shutdown of business, followed by slow business momentum due to the increased regulations and reduced numbers of customers. As you plan to reopen your business after the COVID-19 shutdown, the details can be difficult to figure out, especially if you aren’t sure how to make ends meet and adhere to strict and overwhelming regulations while restarting operations. So how does one reopen a small business, especially considering the expense that reopening your business entails before a steady stream of revenue resumes? Read on to learn the answer to these questions, and more.

For this article, we interviewed Jennifer Palmer, owner of Nourishing Journey, a wellness center and organic café located in Columbia, MD. She successfully reopened her business as soon as the state of Maryland would allow. Her business is both unique and complicated, affected by many different COVID-19 regulations from several industries, due to the many types of services her business provides. This means she had to do a lot of research when deciding when and how to reopen her business.

Estimate Revenue When Planning to Reopen Your Business

When you are in the planning stage of reopening your business, it’s helpful to have an idea of how much money you think you can bring in before making any other decisions.

Palmer says, “First and foremost, I had to figure out how much I thought I could bring in for revenue, and then come up with a plan for further financing, and then after I had the money figured out, I could focus on operating decisions. I made a rough revenue estimate as to what I thought we might bring in from the café and then also separately for the wellness center. I estimated about 50% of revenue compared to what we had brought in before we had to shut down, and I was pretty accurate with that.”

When making your own revenue estimates, you will have to take different factors into consideration. Depending on your industry and how well it’s doing, how flexible you can be with moving your business to a digital focus, where your brick and mortar business is located within the country, and how well that area is doing economically, your revenue estimates might be higher or lower than 50% of what your business used to bring in.

For example, according to the New York Post: “National retailers—from Shake Shack, Applebee’s, and cap seller Lids—say their Big Apple stores are bouncing back more slowly than even neighboring states like New Jersey and Pennsylvania, which were also hard hit by the coronavirus.”

Other areas of the country were not nearly as hard-hit as some metropolitan areas and might be back to “business as usual” without too much impact on revenues. If you aren’t sure how your area is doing, you might call your local chamber of commerce to see if they have any information to help you with rough estimates.

How to Finance the Reopening of Your Business

Once you have decided on a rough revenue estimate of what you feel you might realistically make during the economic recovery, it’s time to address loans and other forms of working capital you might be able to secure. Before you make too many operating decisions as you plan to reopen, it’s important to figure out how much capital you have to work with and what you might take in from loan programs designed to help businesses through the pandemic. One factor that can help greatly with a smooth reopening and continued operations is increasing the amount of capital you can use in the form of loans to help secure your business and finance operating costs while revenues are temporarily down.

Palmer says, “I applied for every loan and grant that made sense to apply for. I first approached my bank, then applied for an SBA loan and grant, plus other grants as well. Most did not come through because there were so many people who applied. I was glad that I applied for as many loans and grants as I did so that I got something to support the business.”

When considering what financing options to pursue, it helps to speak with someone at the bank where you currently have a relationship. Having someone to help you through the loan application process and answer your questions can help cut through the confusion and help a potentially stressful or overwhelming process go more smoothly.

“Talking to the manager at my bank was very helpful,” says Palmer, “and I was able to navigate the financing process more easily than if I would’ve done it alone. The bank made applying for the SBA PPP loan and extending my credit quick and easy with little information needed for the application process. Whenever I had a question, they had answers within an hour.”

Once you have your loans and other working capital in place, it’s time to make some operating decisions.

Staffing Hours

Palmer shared what considerations drove her decisions when figuring out staffing and her new opening hours. Based on state regulations of certain industries, some practitioners weren’t able to work right away until the state of Maryland eased up on some restrictions. The attendance capacity at events was capped to 10 people or less, which led to a delay before resuming those operations. Plus, practitioners and staff had varying comfort levels of coming back to work, which impacted some of Palmer’s decisions. Considering all of this, plus her reduced revenue estimates, it did not make sense for Palmer to reopen Nourishing Journey at full operating capacity from day one.

When making your own decisions for your business, first check your county and state’s regulations for the industries your business serves to see if you are legally allowed to fully open, or if you need to cut back on or reduce some services based on capacity, social distancing, or other guidelines.

All things considered, Palmer had to do the math on staffing and business opening hours she could provide based on restrictions, revenue estimates, expenses, and overhead. She says about making these operating plan decisions, “The next thing I had to do is contact all of my staff and figure out who was willing to return given their concerns with the virus and the new staffing hours. Then I had to finalize the hours we would be open given the estimation of 50% of revenue coming in. I considered the expense of opening with limited hours. I scaled down the administrative and café service hours to as little as possible considering the circumstances. We didn’t need administrative stuff all day long, seeing as we weren’t as busy. This put more responsibilities onto the practitioners to check-in and out clients, but it allowed us to open with a budget-friendly approach. Instead of having two people work the counter in the café, there is only one. Services may be a little bit slower in the café, but everybody is really understanding and just happy to get their smoothie. Also, with all of this, I had to consider what I could pay them for the hours needed in contrast to what they were currently bringing in with unemployment. I did not want my staff to be bringing in less money than they were before the shutdown. Luckily, it worked out well and I was able to bring back most people with altered schedules.”

Researching COVID-19 Rules and Regulations for Small Businesses

When asked how she found out about the rules and regulations reopening your business after the COVID-19 shutdown, Palmer says, “I looked up the guidelines on the state and county websites for businesses opening back up. Then I had to look for additional guidelines for the café and for our practitioners in the wellness center. We have so many different practitioners that we have many different guidelines we had to look at. Some practitioners had a lot of very specific needs based on their industry guidelines and others could just follow basic guidelines for the state and county.

To give an idea of the many industry guidelines and regulations Palmer needed to consider when reopening, we will list the services her businesses provides. Nourishing Journey offers massage, craniosacral therapy, acupuncture, acupressure, shiatsu; detox services such as colon hydrotherapy, infrared sauna, and ionic footbath; distinct wellness options like Reiki, other modalities of energy healing, reflexology, intuitive guidance, and spiritual coaching; traditional wellness and medical consults; plus classes and other group events. Depending on different industry guidelines and standards, some of Nourishing Journey’s practitioners are licensed, which often means following more restrictive COVID-19 guidelines. Some of Nourishing Journey’s practitioners work directly for Nourishing Journey, and others rent space and run their own practice, which means many practitioners and customer needs and guidelines differ.

“I had to gather up the recommendations and figure out what made most sense given we have a public space with the café, plus a wellness center seeing one-on-one clients, which complicated some of the decisions we needed to make. We have people coming in off of the street for the café with the same entrance as people coming in for the wellness center. We have to be mindful of capacity and social distancing and needed to develop a plan for how to manage that. We had to add signs to the entranceway explaining mask guidelines, keeping distance between each other, not coming in if you’re sick, waiting outside if you are visiting for a wellness appointment until your practitioner can greet you, and also our new hours.

“We needed to figure out appropriate signage, handling foot traffic, taking temperatures, asking patients and clients to wash hands, cleaning rooms thoroughly and appropriately after each session, and tracking everything that we are doing. We’ve also had to worry about how to make sure our clients know our procedures and guidelines so that they are prepared when they come in.”

How to Communicate and Enforce Rules and Regulations

Printing signs to put around your business to remind customers is a good way to enforce the guidelines to that end. Palmer sent an email explaining the rules to her practitioners so they were aware before coming into the business. When it comes to communicating rules and regulations with staff, this will depend on how your staff best receives communications and how complicated the rules are in your industry.

Palmer says, “For the café, some of my staff does not check email. With them, I texted and they were more than happy to jump on board and start working again. I just had to show them what needed to be done and some of the changes in procedures. For example, laundry had to be done differently and the clean laundry would be kept in a different place than the dirty laundry to make sure there was no possibility of cross-contamination. Also, we had to consider things like how often we would wipe down commonly touched surfaces.

“For the wellness center staff and administrative staff, we had different things to worry about. Usually, clients would just come in and fill out their paperwork and wait for the practitioner. Now the client stays in the car and texts the practitioner to let them know they’ve arrived. The practitioner texts the client back to let them know when they can come in. The client needs to make sure they have their mask on before coming in, immediately have to get their temperature taken after they walk in the door, wash their hands, sign a special COVID release form, and then go back to the session room.”

With all this in mind, when asked what the biggest challenges have been, Palmer says, “I think the hardest part about opening back up has been remembering every single new procedure that must be done to meet the regulatory guidelines. Also having to wear the mask all the time has been difficult. Many do not feel well having a mask on for long periods. Breathing in carbon dioxide is not good for anyone at this level of exposure and it has given people issues with feeling like they’re not getting enough oxygen. So we’ve had to get creative with ways that staff can find breaks to take off their mask. The staff knows that they can go into a back room and take off the mask to breathe for a minute or two and then come back out.

“Overall, some of the biggest challenges we’ve had have been around balancing everybody’s needs. Some clients are very scared of the virus and some aren’t at all scared of the virus. Some practitioners have very strict guidelines in order to practice and some don’t. Mixing all of the needs together and trying to keep everybody happy and comfortable has been one of our biggest concerns and is an ongoing concern. We want to make sure everybody knows we are keeping our space clean, safe, and open for business, while also still having the spa-like feel to the appointment.”

More Resources to Help You Reopen Your Business

We’ve provided a slew of resources on financing your business and navigating some of the unique challenges business owners are facing amidst the shutdown and reopening of the economy. You can reach out to a lender to assist you with securing a loan for your small business. Best of luck to you as you move forward to reopen your business after the COVID-19 shutdown. Below you will find other resources that can help you with planning and researching as you make your own plan for reopening your business.

• Resources for Small Businesses Impacted by the Coronavirus (COVID-19)
• Managing Small Business Cash on Hand During Emergencies
• How to Protect Your Small Business from Predatory Lenders, Fraud, and Scams
• Leveraging Small Business Resources to Survive and Thrive Beyond COVID-19
• Adapting Your Small Business Supply Chain in Response to COVID-19
• Crisis Management for Small Businesses: COVID Shutdown
• U.S. Small Business Administration (SBA) Economic Injury Disaster Loan: What You Need to Know
• How to Stay Connected to Your Customers During the COVID-19 Shutdown

Financial coaches Sarah Wen and Chris Starr of TrustPlus share best practices to help you manage your small business cash on hand during emergencies. As sales have plummeted and many business owners struggle to stay afloat, it’s important not to lose hope and instead formulate a solid, strategic plan to help your business survive well beyond the COVID-19 economic shutdown. Your small business cash-on-hand emergency strategy must include assessing both expenses and income before making your small business emergency plan.

 

Assess Expenses

Wen says that in order to get a complete picture of how long your small business’s cash on hand might last, it’s important to understand where your money is currently going in terms of expenses.

Prioritize Expenses: Try to think two to three months ahead, especially if you’ve lost income or expect to lose income within that timeframe. Evaluate all upcoming fixed expenses on the basis of:

• Flexibility: Is there a grace period? Is there lender leniency? Is negotiation possible?
• Liquidity: Does it require a cash payment or can it go on an available credit card?
• Necessity: evaluate non-essential subscription services and consider whether to freeze or cancel.

Ask yourself, where can expenses be trimmed? Where have expenses increased? What barriers might exist to trimming expenses, and can these barriers be removed?

When deciding how to spend cash, Wen recommends prioritizing food and medical care expenses first; followed by housing, utilities, communications; and then debts and other responsibilities last.

Reduce Payments and Expenses

Wen advises small business owners to check for programs that allow you to reduce payments or to buy goods at a reduced cost.

Wen says it’s important to understand whether you qualify for food assistance, for example via the Supplemental Nutrition Assistance Program (SNAP). You can also check local food banks or other local programs. Find out from your landlord or mortgage company if you might be able to defer or lower rent or mortgage payments on your business or home.

When deciding which expenses you can reasonably reduce, Wen encourages you to consider internet and cell service a part of necessary utilities. Ask your cell phone provider if they can reduce your monthly bill. Wen says to use the website FindHelp.org, where you can find a wide variety of assistance, including food assistance, help paying bills, reducing utility bills, and other free or reduced-cost programs.

Obtain Hardship Accommodations on Select Debts

Most credit companies and other debtors are allowing for payment skip, reduced monthly payments, or other considerations due to the ongoing crisis.

Wen recommends checking with your credit card and lending companies to find out what relief assistance they are offering. Wen says to keep track of details of your requests, such as the dates and names of the reps you speak with in case you face resistance when asking for hardship help, and ask to be transferred to the proper department for hardship assistance. Also, Bankrate.com has a large list of banks offering help to customers impacted by the Coronavirus, with detailed information about how to navigate each one.

Wen notes federal student loans are suspended without further action.

Assess Income

As you plan strategically for keeping your small business open and managing cash on hand, it’s important to evaluate your assets so you know what you have to work with, and what you need to protect and maintain. Tally up all income from yourself and other household contributors to determine how much money is coming in presently, the prognosis for the next few pay cycles, and the long-term projection.

In terms of savings, what upcoming needs and contingencies might be relying on your savings fund? Are you in a position to add to your savings fund right now?

Wen says to determine how much available credit you have. While adding debt is a last resort, it should be taken when weighed against food and housing needs.

Economic Impact Payments (EIP)

The federal government approved EIP, which you should already have received this spring. The EIP is based on tax return information you filed and will be either automatically deposited or otherwise paid out, depending on the information you provided to the IRS on your 2018 or 2019 tax return. Most adults received $1,200 each, although some would get less depending on their financial standing. For every qualifying child age 16 or under, the payment is an additional $500.

You should take action to get your EIP if you were not required to file for an allowable reason, e.g. you are a social security recipient, but if you have dependents, you will want to file in order to receive EIP funds on behalf of those dependents.

Small Business Administration (SBA) Options

The SBA is providing a financial reprieve to small businesses during the COVID-19 shutdown. You can apply through any 7(a) SBA lender for a PPP loan or an Economic Injury Disaster Loan. Read on for details of each.

Paycheck Protection Program (PPP) loan

The SBA PPP loan is designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

SBA Economic Injury Disaster Loan

The SBA Economic Injury Disaster Loan (EIDL) provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 economic shutdown. This program is for any small business with less than 500 employees, including sole proprietorships, independent contractors, and self-employed persons; private non-profits, and 501(c)(19) veterans organizations affected by the shutdown. A loan advance will be made within days of the application, and the loan advance will not have to be repaid.

SBA Express Bridge Loan

The SBA Express Bridge Loan (EBL) allows small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. The EBL can be a term loan or used to bridge the gap while applying for a direct EIDL. If a small business has an urgent need for cash while waiting for a decision and disbursement on an EIDL, they may qualify for an EBL. An EBL is for up to $25,000, has a fast turnaround, and needs to be paid in full or in part by proceeds from the EIDL.

SBA Debt Relief Efforts

As part of SBA’s debt relief efforts, the SBA will automatically pay the principal, interest, and fees of the current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.

File for Unemployment Benefits

If you are a self-employed worker or do not qualify for regular state unemployment insurance, you may now be eligible for federal Pandemic Unemployment Assistance. Each state sets its own unemployment insurance benefits eligibility guidelines, but you usually quality if you:

• Are unemployed through no fault of your own. In most states, this means you have to have separated from your last job due to a lack of available work.
• You must meet your state’s requirements or fall into one of the categories of the Pandemic Unemployment Act.
• Meet any additional state requirements.
• If you are a self-employed worker or do not qualify for regular state unemployment insurance, you may now be eligible for federal Pandemic Unemployment Assistance.

Wen says to do as much research as you can online before calling for assistance since call volume is extremely high.  The maximum timeframe to receive payments is for a period of 39 weeks, and you may receive assistance retroactively. In addition to typical benefits, Pandemic Unemployment Assistance gets you an extra $600 per week max. Typical benefits vary by state, ranging from $275 (LA) to $750 (NJ). With an additional $600, you’re looking at a maximum of $875 to $1350 per week. Most will not receive the maximum benefit.

Personalize Your Ongoing Financial Strategy

Wen says it’s important to revisit these exercises as time goes on, continuing to track expenses and budget. Stay on top of things and apply as new benefits are offered. Wen says it’s important to document all financial changes and concessions made in regards to the shutdown and keep paper trails and receipts for all alternative arrangements. We don’t know how long the economic impact of the shutdown might linger; so Wen says how risk-averse you are will help to shape and personalize your strategy as you make a financial plan, and manage your small business’s cash on hand to successfully keep your business afloat.

In times of crisis or economic shutdown, many small business owners wonder how to help their businesses survive. From how to secure crisis loans for small businesses, to how to lower your business expenses, plus strategies to use a shutdown to your advantage, here are important tips for crisis management for small businesses.

How to Secure Business Funding Due to an Economic Shutdown

During an economic downturn, like the 2008 crisis or the coronavirus pandemic, it’s important for all small business owners to secure emergency business funding both during the financial difficulties caused by the shutdown and beyond to when the marketplaces will have returned to economic health.

For example, during the initial coronavirus lockdown, some companies business dropped to zero while others saw a reduction of 50% in profits. In times like these, it is important to see economic injury disaster loans to help bolster your company’s future due to the economic slowdown. Business owners should not only apply for crisis loans in order to stay viable during a slowdown but also to plan for near-term opportunities to grow your business.

Look at all available lending programs, whether those are for economic injury disaster loans or grants. Experts recommend you find out what the requirements are to apply for the maximum dollar amount available depending on the parameters of your business. In many cases, disaster or emergency loans from government agencies have extremely low-interest rates and flexible terms such that you don’t have to begin repayment right away.

Where Can I Find Emergency Capital?

Depending on the state or region of the United States where your business is headquartered, your options for capital vary. Accion Opportunity Fund is a microlender that offers flexible funding options, including microloans and lines of credit, in various areas of the country.

Small business owners  should check with their city, county, and state governments to find out what lending programs they are offering to offset the damage done by an economic shutdown. He says to look for loans with a low-interest rate and slow payback term so that you don’t have to stress about making loan payments right away.

 

Negotiate Your Commercial Real Estate Lease Terms

While your business doesn’t have money coming in, you want to try to reduce your business costs as close to zero as you can. One of the most effective ways to reduce costs is to re-negotiate your lease terms while the dollars aren’t flowing. Initiate the conversation with your landlord or property manager to see if they are willing to change the terms of your lease. Ideally, you would ask for and receive a multi-month deferral of rent payments.

If you’re uncomfortable negotiating, remember the tenant-landlord relationship is mutually beneficial and the landlord needs your business to be viable in order for the relationship to work.

Make Difficult but Necessary Staffing Decisions

Ask yourself honestly if you can afford to retain your employees and stay in business until restrictions end and business picks up again. Draining your coffers dry and going out of business serves no one, least of all employees. Most business owners are having to make difficult decisions to reduce staff or reduce hours. It’s something you need to look at in order to keep your business operational long term.

Sometimes the answer will be a temporary reduction in staff, allowing those who are laid off to receive unemployment, which can be a win-win depending on the wages you were paying. Then when business comes back, you can hire back those employees who desire to return to the business.

Have conversations, and figure out what’s best for your employees. If you reduce hours and thus payment too much, your employees might be better off going on unemployment. As you secure funding, figure out how much runway you have given different scenarios until business returns. Frequently, you will need to be able to generate revenue or other substantial business activity to justify paid staffing decisions.

Find Revenue Opportunities

Small business owners need to look at both the short-term shutdown circumstances you can possibly capitalize on, as well as how long-term market changes can result in new and different business opportunities. For example, within the food and beverage industry, some businesses already have a system for delivery in place during short-term COVID-19 business restrictions. The saturation in the delivery business can make a return to normal profits difficult if not impossible, and so don’t be too hard on yourself if you still feel like your business is struggling, even with curbside pick-up and delivery in place.

Every retailer should be thinking about how much of your business you can move online. You can also look at how you can appeal to essential workers in your town or city. Richards advises considering partnerships, new sales channels, and shifting more energy into existing secondary revenue channels. Every bit of extra revenue you can generate is helpful, he says, both short and long term.

Turn the Shutdown Into an Opportunity

While no business owner would have reasonably wanted a complete economic shutdown, there are opportunities we can take advantage of while we wait. Here are some of the things that would be helpful to look at while you are less busy with normal business activity:

 

Identify and document operational improvements: Take the downtime to put together an operations manual by capturing and putting into written form how things get done. Identify the key areas of your business where it’s important to communicate the best practices of how your business operates.

 

Clean up your bookkeeping: As you’ve applied for capital, you’ve probably been confronted with how beneficial solid bookkeeping is, considering all the documentation you’ve been asked for. There are a variety of quality bookkeeping software tools out there, so now is the time to get that in place and cleaned up before you get busy again.

 

Current customer needs you can address: This isn’t about sales and marketing; this is about great info that can help your customers solve problems, have a relaxed attitude towards the state of the world, and offer whatever expertise best serves your customers. Providing helpful information like this can convert readers consuming the information you are putting out there into paying customers once your business fully opens up again.

 

Improve technology: Now probably isn’t the time to invest heavily in technology, but it’s definitely a great time for planning on what kind of technology improvements you’d like to make when the markets stabilize in the future.

 

Share your expertise: Help other business owners solve problems. Use social media to give people really good information who may be struggling. It’s a great time to be helpful and build your business network.

 

Reach out to mentors: Set a goal to learn something about your industry, new products, and new resources so that you will be in even better shape when we are all back to business as usual. Keep learning and growing, and don’t be stagnant during the downtime.

 

Rest: Business owners are often overworked. Use this time to recharge mentally and physically. Relax and carve out time to be more creative.  The downtime is here, so give yourself time to get ready for the busy season that will come after the shutdown is over.

Be Optimistic and Proactive

Overall, small business owners should remain optimistic and proactive in keeping your business going beyond the economic shutdown. Maximizing the amount of capital you can secure is key, as well as cutting expenses wherever possible. It’s important to remember, things will return to normal—and not necessarily a “new” normal—but rather a better future that benefits all business owners when we experience a strong economic recovery.