March 30, 2020
5 Things Businesses Can Do Now
1. Talk to your lender
If you haven’t already, talk to your lender if you expect or are experiencing cash flow problems.
2. Plan for the next 3-6 months
Many businesses have sufficient funds or access to capital for the next 2-3 months; however, we don’t know how long this will last. Both in terms of a potential lengthening of the pandemic, but also in terms of how to handle a recovery, and re-opening of businesses.
3. Be ready to produce required documents quickly
Loan programs require information to underwrite a loan, including the loans created through the CARES Act. To help your lender with your application, have your documents ready. The Paycheck Protection Act is intended to help cover 2 ½ months’ worth of payroll – in order to quickly verify your information, gather 12 months’ worth of payroll data.
4. Don’t draw on lines of credit just yet
There is plenty of liquidity in the system (unlike what may have existed in 2008) so don’t draw on lines of credit unnecessarily. Keep lines of credit intact until you absolutely need to use them. You don’t need to incur the added expenses that may be associated with accessing lines of credit.
5. Have patience
We’ll help you through these challenging times, but it’s important to remember that programs are not fully established yet. Technology can cause disruptions or delays, and everyone needs to exercise patience during this time.
Topics originally by the Wisconsin Bankers Association.