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SBA loans helping new businesses open amid coronavirus pandemic

SBA loans helping new businesses open amid coronavirus pandemic
Posted at 6:59 PM, Aug 04, 2020
and last updated 2020-08-04 20:59:56-04

Although many companies across the country are having a tough time staying open during the pandemic, there is some good news: The Small Business Association is finding some people are opening new types of businesses.

Many of these new small businesses are being helped by loans, which the SBA said aren’t difficult to get currently.

"A lot of people are being entrepreneurs and they're coming up with new ideas so you see a lot of people making masks, you see people making shields, you see a lot for 3D printing businesses starting up. So that’s a great thing, that’s entrepreneurship. Whenever we’re given a problem, people come up with a solution," says Charles Abell with the U.S. Small Business Association.

Abell says new tech companies are also thriving because it's a business that can be run remotely.

"You see so many new tech businesses starting up and that’s a great thing. There's a lot of need for medical tech, so people are coming up with new apps on how do we track our area with the COVID-19 virus," says Abell.

He says it can be tough for some people who are finding themselves out of work and an expert in just one industry to suddenly pivot to another. The SBA says some are turning their hobbies into businesses.

"They have a great sauce or they have a great product that they can make at home and they can use Amazon and do the shipping services to market their products. So, I think a lot of people are being very experimental right now," says Abell.

People who focus on delivery services are also finding business is booming. And many of these businesses are benefiting from easier access to loans.

"This is an amazing time right now. A lot of people are refinancing their homes and getting the lowest interest rate possible. Well, guess what, starting your business is a very similar process," says Abell.

The key right now for people who are thinking of starting a brand new business is to think through your plan and funding needs. And make sure the business can thrive in the current state of our economy.

"It's good that they have a business plan and have someone helping them with the business plan to make sure it's sustainable," says Abell.

The SBA has free tools available to potential, new and longtime business owners on their website. They encourage new business owners to use every resource available to them so that their brand new company can not only survive this pandemic but for many years after.