As the COVID-19 pandemic continues to sweep across the country — and even getting worse — there’s a good chance your trucking company is eager for relief or help in one way or another.
In response to the madness that 2020 presented us, the federal government signed the Paycheck Protection Program into law. On April 3rd of this year, small businesses — including your trucking company — were allowed to apply. A week later, the program was open for independent contractors and self-employed individuals as well.
While the deadline to apply ended recently, the current spikes we see in cases across the United States has led the federal government to extend the Paycheck Protection Program until August 8th, 2020.
If you weren’t able to apply in time during the last run, you will still be able to apply for another month or so. The POTUS signed this extension in hopes of keeping employees on payroll and businesses open.
What is the Small Business Coronavirus Relief Program?
The Small Business Coronavirus Relief Program has been an ongoing mission by the federal government and the U.S. Small Business Administration to provide relief to the businesses that need it most.
Made up of several different resources and incentives for your trucking company, the Small Business Coronavirus Relief Program can help you in the following ways:
- Paycheck Protection Program – designed to keep employees on the payroll, the SBA will forgive all loans if specific employee retention criteria are met.
- Loan Advances – the Economic Injury Disaster Loan Emergency Advance will provide up to $10,000 to qualifying businesses experiencing disruption during COVID-19.
- Debt Relief – according to the SBA, they will pay any fees you owe for “7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.”
In times of dire need, it’s crucial that your trucking company has the resources it needs to continue serving your clients and your community. The SBA and the federal government have provided a substantial amount of relief. It’s essential you take advantage of this relief as soon as possible!
Other Ways Your Trucking Company Can Find Relief
In addition to relief from the federal government, there is a wide range of other ways you can stay busy and productive this summer — and beyond! One of those ways is through freight factoring. If you’ve never heard of it, listen up. If you have heard of it, you should make sure you’re using the right factor and consider switching, if necessary.
With freight factoring, you receive an advance on open invoices that would’ve typically taken 30-90 days to receive. Instead, freight factoring gives you an advance — generally around 75-90% — in 24-48 hours following delivery.
In addition to that, freight factoring companies will often provide extra benefits like a fuel card and discounts when performing maintenance on your trucks. These can help you stay afloat this summer and keep your company pushing through these difficult times!
References
Coronavirus Relief Options, www.sba.gov/funding-programs/loans/coronavirus-relief-options.
Press, Associated. “Senate Extends Coronavirus Relief Program for Small Businesses through Aug. 8.” MarketWatch, MarketWatch, 1 July 2020, www.marketwatch.com/story/senate-extends-coronavirus-relief-program-for-small-businesses-through-aug-8-2020-06-30.