While many designers were negatively affected by the pandemic, we noticed a number of designers’ businesses soared in 2020. The main qualification for the second round of PPP was proving that your business’s income was drastically reduced in 2020 versus 2019. Once we pulled a comparison profit and loss statement, many designers realized that their income did not decrease from 2019; In fact, their profits increased. As always, knowing your numbers is key when applying for additional funding and assistance. If you are a designer who did better in 2020 but could really benefit from additional resources, we compiled a list of loans that do not require reduced income.
SBA 7 (a) Loan – The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:
SBA MicroLoan – Smaller-size loans of up to $50,000 provided through SBA funding intermediaries.
The Small Business Stabilization Loan Program opened on January 28, 2021, and is intended to prevent job loss and business closures. Minimum $50,000. Maximum $3,000,000. Interest rate: Fixed Wall Street Journal Prime rate. (Currently at 3.25%) Loan Term: Working Capital – 5-7 years. Equipment – Up to 10 years. Real Estate Acquisition and Construction – Up to 20 years.
Small Business Bank Loan – You can talk to your bank about a business loan if you want to compare rates and options.
City grant and loan programs do pop up here and there, so keep your eyes peeled for any extra assistance that might become available in the future. We will do our best to keep you informed of any new options.
Preferred option, if possible:
Most banks offer unsecured loan options for businesses who have been in business for at least two years and generate a certain annual revenue (for example, Bank of America requires $100,000 annual revenue). You are likely to get lower rates from your bank than you would securing a loan from a different source. Specifications and qualifications vary between lenders, so be sure to talk with your banker to get the most up-to-date information.
Some higher-rate possible loan options are available through fin-tech platforms. These will likely be smaller loans with higher interest rates but are easier to get, especially when you connect them to your accounting software.
Most Viable Fast Funding Options:
Secondary Funding options:
DUNS Number (do you have one?)
The Dun & Bradstreet D‑U‑N‑S Number is a unique nine-digit identifier for businesses. D‑U‑N‑S, which stands for data universal numbering system, is used to maintain up-to-date and timely information on more than 330 million global businesses. With a D-U-N-S number, you can:
✦Demonstrate your company’s financial stability to creditors and suppliers
✦Join Dun & Bradstreet’s Business Directory, that has over 58 million visitors
✦Capitalize on potential contracts that require a D-U-N-S® Number
This unique number is a world-wide tool used to identify and access information on businesses, and is the starting point for your company’s Live Business identity – the most comprehensive and continually updated view of any company in the Data Cloud. A D‑U‑N‑S Number identifies a company’s Dun & Bradstreet business credit file which may include company location and contact information, corporate family relationships, and scores or ratings to determine your business’ level of financial health.
Not sure if you have a DUNS number? You can search your business here.