Our goal is always to provide you the most up-to-date information to make smart decisions whether you live, work or play in Waldo. Here is more information from trusted resources to answer any questions you may have during COVID-19.
Tips for Businesses on Cash Flow:
Tips provided by Missouri SBTDC (Read full article)
- Evaluate new distribution methods – Look for ways to boost your newly limited in-person traffic. Could you still be solving problems for customers but in different ways? Does creating a subscription service, setting up e-commerce, adding delivery, or implementing curbside service benefit your customers? We at the Missouri SBDC have a pet store client now offering same-day local delivery to help customers and their pets get what they need while safely in their homes. Now is definitely the time to creatively adapt, if you’re able.
- Bill sooner and collect faster – If you offer credit to customers, be sure to bill them promptly. Right now we recommend ensuring that you’re billing just as soon as work is completed. Then consider your collection practices. The time might be right to consider offering your customers a small incentive if they then pay what they owe you super quickly. At a minimum, you need to be following up on receivables a few days before they’re due to ensure your customers remember the invoice and plan to pay on time.
- Hold off on major purchases – While things are so uncertain, big capital expenditures should be postponed if at all possible.
- Manage inventory – Inventory is essentially your business’s cash sitting on a shelf. Now is a great time to consider canceling or delaying planned inventory purchases. Get creative with current inventory on-hand. Can it be returned or exchanged with your vendor? Are there ways to incent customers to buy current inventory using discounting or other incentives? More ideas for managing inventory can be found here.
- Reach out to your business insurance agent – Some business insurance policies may cover situations like COVID-19, especially if you carry a business continuity policy. You may have Force Majeure coverage providing assistance for financial losses arising out of the inability to bring a project to completion. Reach out to your agent to see what, if any, coverage is applicable to you.
- Consider reducing your payroll expenses – We entrepreneurs are only as strong as our teams. That is what makes managing payroll so hard in light of the likely impact on your co-workers who are often also friends. However, unprecedented times possibly call for unprecedented measures. At this point, you should at least begin postponing new hires and considering reducing hours and laying off nonessential employees.
- Pay your bills slowly – While things are in flux, do not pay your bills any faster than you have to. Take advantage of the full agreed payment terms to hold onto your cash longer. The goal should be to pay your creditors as slowly as possible without incurring a negative consequence. You should also reach out to all suppliers, creditors, landlords, and banks for possible modified payment terms. Many banks are already offering to modify their existing loans down to interest-only or no payments for the coming 3-6 months.
Loan Information for Small Businesses:
SBA Disaster Loans
The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplement Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
What businesses are eligible to apply?
SBA’s Economic Injury Disaster Loans (or working capital loans)
are available to small businesses, small agricultural cooperatives,
small aquaculture businesses and most private non-profit
organizations
This includes:
• Businesses directly affected by the disaster
• Businesses that offer services directly related to the businesses
in the declaration
• Other businesses indirectly related to the industry that is likely to
be harmed by losses in their community
(Example: Manufacturer of widgets may be eligible as well as the
wholesaler and retailer of the product.
The SBA website has experienced high demand and outages. When the website is offline, you can still apply via https://disasterloan.sba.gov/ela/Home/OfflineApply by uploading your filled out forms through a link on that page or by scanning and emailing your filled out forms to disasterloans@sba.gov. The SBA recommends checking the main application page for availability one final time before submitting via these alternate methods as their online application portal is still the fastest, best way to get your information into the hands of their underwriters.
More information & resources:
- AltCap Small Business Relief Loan Fund info: In response to the COVID-19 pandemic, a new community-backed $5 million small business relief loan fund was launched today by AltCap, supported by the Greater Kansas City Chamber of Commerce (KC Chamber), the Kansas City Area Development Council (KCADC) the Civic Council of Great Kansas City (Civic Council) and the Ewing Marion Kauffman Foundation.
https://mailchi.mp/alt-cap/kccovid-19-small-business-relief-loan-fund?e=0405b90ea8 - Financial responses for Covid19: https://sbtdc.umkc.edu/financial-response-to-covid-19-things-you-can-do-for-your-business-now/
Who to contact for questions and advice:
- Questions about your business and operations: Please contact city officials in KCMO with direct questions at kcbizcare@kcmo.org or visit kcmo.gov for additional resources and information
- Want to chat with a Small Business Counselor for advice? Contact the Missouri Small Business Development Center for support at sbdc@umkc.edu
- Need more resources and advice to support your business? KC Source Link offers a free Hotline you can call anytime at 816-235-6500 or contact them at kcsourcelink.com/myplan, and their Network Navigators will help you get to the right resources to start, plan, grow and fund your business.
Unemployment information for Employees & Employers
- Unemployment info: Information for employees and employers https://labor.mo.gov/coronavirus#mini-panel-coronavirus-tabs2
Downloads & Files to Reference:
We have compiled a Google Folder with information and resources to review. Please visit this link to learn more: COVID-19 Resources.