WASHINGTON – The government shutdown is not just affecting “non-essential” government employees. It has delayed the small business loans the government has promised, and it could be disastrous for the many small business owners strapped for cash. And not having enough funding is the second reason why startups fail. This is not good.
It is the longest government shutdown in history. Small business owners are beginning to worry about the future of their businesses and if the shutdown will ever end so they can get the money they need to stay afloat. This is especially critical for small businesses that opened their doors right before the shutdown.
One startling example is Brooks Troxler, a small business owner from North Carolina. According to the Washington Post, “If Troxler doesn’t get the $550,000 loan soon, he won’t be able to buy his dream commercial property — an acre on a heavily travelled road — a major upgrade from the small space he leases now. He’ll also lose all the money he has sunk into appraisals, paperwork, fees and environmental assessments in the past few months to make this deal happen.”
There is good news. There are plenty of ways to get fast business financing to potentially ride out the government shutdown and the wait time for processing once the government does get back to business. Let’s take a closer look.
Get A Fast Business Loan Securing A Line Of Credit
Securing a line of credit for your small business during the government shutdown, and even after, is a great way to ensure you have money when you need it. You never know when emergency funding is needed, like this historic shutdown. This is one of the best fast business loans you can get.
Why? A business line of credit you can get $10,000 to $1 million anytime you need it, depending on your credit amount of course. You can also use that funding for different things, like emergencies for your business, or even expansion opportunities.
One of the best things about a business line of credit for your small business is that you only pay interest on the money you borrow at that time, not interest on a lump sum. This is certainly a financial advantage when it comes to fast business loans.
Working Capital Loans Serve Up Short Term Options For Small Business Owners
If you need a fast business loan in the wake of the government shutdown, a working capital loan can have benefits. For example, a small business owner can borrow $2,500 to $250,000 to help finance emergencies, like a shutdown, or take advantage of an expansion opportunity.
The good part about working capital loans is that small businesses only need to borrow short-term, since the repayment schedule is set at a maximum of 18 months. This helps business owners steer clear of long interest payments. You can also get a working capital loan in less than 48 hours, depending on the lender.
“Working capital loans can be useful and perhaps a combination of loans—such as a company credit card and a term loan—could put your company in a better position than it is in today,” Megan Totka explained in a Forbes article.
Going The Short Term Business Loan Route May Not Be So Bad Right Now
There are a lot of different types of fast business loans available to small business owners. Are they all ideal? No. But in times of crises, having a quick funding option is often the only way. For example, short term business loans can be secured in less than 48 hours.
They are similar to working capital loans with loans ranging from $2,500 to $250,000. However, they often have a high-interest rate, around the same as a credit card. This may not be best, but it is certainly better than folding your business and losing the money you invested, like in the case of Brooks Troxler above.
Your business credit and finances do have a role in how much you can secure, but there are possibly more flexible loan options in this time of government shutdown crisis. Getting a surge of cash can be just what you need to weather the current storm.
In Conclusion… Are you a small business owner affected by the government shutdown and lack of government small business funding? It is important to know that there are fast business loan options available. You can mix and match these options as well, securing enough money to keep your business afloat. Do you have a finance tip? We want to hear from you.