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.