So, you want to keep your food hot and the lights on? There are more than 1 Million restaurants nationwide now searching for ways to keep their doors open. There is a decline in revenues and supplies. Restaurants are seeking ways to get resources and funding during COVID-19. Read on to take note of steps that management can and should take to find funding and other resource options during the COVID-19 financial uncertainty.
US Congress is working diligently to pass disaster relief to financially support citizens and businesses. It’s no wonder that now workers are facing layoffs and company closings. Expenditures at restaurants across the country are quickly dwindling and the time to act is now. You have to move fast.
We’re at a point where everyone wants money and nobody wants to lend. State governments are making more restrictive steps to combat the Coronavirus. Shelter-in-place orders as an example. Unfortunately, restaurants will continue to see a decline in meals served. This “new normal” could last from one to four months.
The hope is that restaurants will continue to provide take-out and delivery meals for as long as doing so doesn’t put the public in harms way, including owners and employees. But there are some places like San Francisco where many restaurants have shut their doors. At this time, there may be a lot of unknown, but help is truly on its way.
Where Can Restaurants Find Funding during COVID-19?
Many restaurants were using alternative lenders like Kabbage and Fundbox to quickly fund operations and expansions, but most alternative lenders have stopped lending as they attempt to mitigate risk. Traditional banks and lending facilities can take weeks to months to fund a loan, even with the Federal Reserve flooding the credit market with near 0% interest rates.
Hopefully banks will be able to quickly disperse government backed loans approved through the disaster relief effort to companies and restaurants in need. This is the unfortunate reality that the restaurant industry is now facing when seeking funding in the current environment.
The Ways You Can Receive Resources And Funding For Your Restaurant During COVID-19 (Pursue as soon as possible)
“The U.S. Small Business Administration 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).” – U.S. Small Business Administration
Here is a list of some resources and funding options to consider for your restaurant during the COVID-19 uncertainty:
- Small Business Administration (SBA) Loans
- Local Banks Line of Credit
- Alternative Line of Credit or Loan
1. Small Business Administration (SBA) Loans
You can find more information by contacting your local bank branch, where the loan can be administered through. Forbes also offers a great resource that lists all of the current government backed funding options for Small Businesses, Forbes Small Business Relief Tracker
2. Local Bank Lines of Credit
Furthermore, if you are in a state that doesn’t qualify for an emergency SBA Loan, which we expect all States to declare a State of Emergency, contacting the local branch where a restaurant keeps their deposits is a smart action to take.
If a restaurant was in a profit position before the impact of the Coronavirus, a loan officer at a bank will be able to offer recommendations on different lending facilities that would fit the needs of the restaurant, be it payroll, debt, or other fixed costs.
3. Alternative Lender Line of Credit or Loan
As we mentioned, most alternative lenders have aggressively tightened their credit requirements over the last three weeks. Fewer loans are now being processed through this valuable lending stream that many newer companies depend on.
While interest rates are typically higher due to applicant’s credit profiles, these lenders provide many companies with valuable operating capital based off of current cash flow versus two years of financials that could not be secured from a traditional bank. The government will turn to companies like Fundera or Lendio to disperse funds at lower interest rates than the industry is known for.
The ways to get resources and funding during COVID-19 may seem daunting, and no restaurant owner wants to take on more than he/she can handle. It is times like these where a business owner must think creatively and positively to act fast before it’s too late.
Fliptable As a Resource For Your Restaurant
With this, Fliptable has come up with a revolutionary mobile app that will serve to assist restaurants in their hiring and job-seeking endeavors. When the uncertainty fades and the COVID-19 curve has been crushed, Fliptable is your sunshine after the rain. We are here to get you back up and running quickly and cost effectively.
Don’t turn to job-boards that will have you spending countless hours looking at irrelevant skills. Instead, turn to Fliptable for your restaurant hiring and job-search. Fliptable is the evolution of restaurant hiring and job seeking in the restaurant industry. Find quality staff and the perfect restaurant job today by signing up for our launch at fliptable.io Fliptable is one resource your restaurant can use to comeback from the COVID-19 crisis.
Band Together During COVID-19
Lastly, band together with the National Restaurant Association and join their effort to lobby Congress to do more for Restaurant Owners and Employees by supporting the Association’s “Restaurant Recovery Plan”. This plan will provide a portfolio of financial resources to restaurants impacted by the Coronavirus slowdown.
Restaurants should contact their State Chapters to find out more about what is being offered within their state’s borders for financial programs. Additionally, One of your most valuable resource for your restaurant during the COVID-19 uncertainty is your community of restaurateurs and patrons. Focus on what you can control. You will get through this, but there’s going to be uncertainty along the way. Keep adding to your cookbook. You’ll be back in the kitchen in no time.