Two Reasons Small Business Owners should be Thankful in 2021

The COVID-19 pandemic has exposed the financial fragility of many small businesses. In the early months of the pandemic, survival was vital – especially with the uncertainty surrounding the end of the pandemic. Lockdowns, travel restrictions, social distancing, and curfews were measures put in place to preserve human life. However, these measures greatly impacted small business owners due to decreased customer traffic and reduced spending. 

Looking back, small business owners continue to face challenges to keep their businesses afloat amidst these unique times. However, every cloud has a silver lining and especially during this Thanksgiving period (there is always something to be thankful for, even in times of stress.) The Coronavirus Aid, Relief, and Economic Security (CARES) Act offered small businesses loans to stay in operations and be hopeful for the future. Here are just a few benefits that small business owners have enjoyed and why we should be thankful for them. (if small business owners did not have them, we would have been in a precarious situation)

1. EIDL Loans – The Economic Injury Disaster Loans offer to fund up to $500,000 and maximum repayment terms of 30 years. These loans have an interest rate of up to 3.75% for small businesses and can be used to repay fixed debts, accounts payable, payroll, and other bills that cannot be paid due to COVID-19. This year saw the introduction of an advance worth up to $10,000. The advance did not require repayment or approval of the loan. 

2. PPP Loans – These forgivable loans of up to $10 million have helped small businesses with less than 500 employees stay afloat and maintain a strong workforce. These funds were eligible for payroll, rent, mortgage interest, and utilities. This year 2021, the payoff term of the loan was extended from two to five years, with a 1% fixed rate of interest. This loan has been a lifesaver for sole proprietorships, independent contractors and other small businesses that did not have the necessary collateral to get funding from banks or financial institutions.

A reason to be thankful this year as we celebrate Thanksgiving is the financial relief you have received as a small business. Even if your business was severely affected, it is also an opportunity to be thankful for life.