What small businesses can do to deal with COVID-19 impacts

COVID-19 has wreaked havoc on the US economy in recent weeks. Despite it also affecting the health of thousands of people, several businesses have had to deal with major losses after being forced to shut their doors.

"It’s a little overwhelming. Very emotional sometimes-- I’ve been keeping very busy on the business side which I’m very thankful for, but I’d rather be working," Sensational Hair Salon owner, Tami Draper said.

Draper has found herself in a situation she never thought she would be in. She had to close up her Palm Desert salon to clients, and hairdressers that rent out space from her.

"If they don’t work, they don’t have money to pay their rent which means I don’t have money to pay my rent. It’s a domino effect," Draper said.

The salon owner has now had to deal with finding out where her next means of income will come from. She, along with so many other small business owners, have bore the brunt of having a nonessential business during the time Coronavirus has wreaked havoc on the US economy.

"I went online, the [Small Business Administration] information-- printed everything out, read everything, had an emotional breakdown-- so overwhelming of what I needed. I called Kim Scanlan," Draper said.

Kim Scanlan is the Coachella Valley Women's Business Center Program Director.

The organization has served as a resource for business owners having to apply for federal assistance through the Small Business Administration.

Scanlan said there are two main loans directly related to COVID-19, that businesses have been able to apply for. Under the CARES Act, which was signed into legislation on March 27, the federal government has allocated $376 billion in relief for American workers and small businesses.

"Payroll Protection Plan-- that’s the one that’s going to be a little more immediate. That will cover the immediate costs of payroll and things like rent and utilities," Scanlan said.

As of Tuesday the turnaround time to receive the money was still unknown. Scanlan said the PPP loan will get out faster than the Economic Impact Disaster Loan.

"The EIDL loan is designed to keep things like rent and expenses going while the business is closed, so that it can reopen when all this is over," Scanlan said.

Scanlan said the SBA has since streamlined the process to apply for the loans. A business plan was previously required for certain loans, but that requirement has since let up.

Scanlan said the SBA wants specific information regarding finances. She also said that the agency's credit scores have also slightly lowered.

She urged small business owners to reach out to the organization to help walk them through the application process.

"Please do reach out because we’re here to help you. We’re your tax dollars at work. If you don’t think you’re going to be a liable candidate, come to us for help. There are other options," Scanlan said.

Several other Coachella Valley organizations have offered their support through these tough times. Below KESQ has provided a short list of organizations that are willing to help small businesses.

Coachella Valley Economic Partnership, Coachella Valley Women's Business Center, SCORE Coachella Valley, Small Business Development Center