What you need to do NOW to deal with the economic fallout of COVID-19
If COVID-19 has decimated your income, don’t go into denial and hope for the best— Take These Actions Right Now!
By Tim Connolly, CEO Corporate Strategies March 2020
The COVID-19 pandemic has left us all reeling, but it’s imperative to take action to protect your income and assets as quickly as you can. Here are the most important steps to take in the coming days:
· If your business income has been severely reduced by the COVID-19 crisis, contact your lenders immediately. Many are routinely giving a 90-day moratorium on payments and allowing those payments to be made at the end of your loan.
· If you're having trouble paying your rent, talk to your landlord about your situation and your options. Request a similar 90-day moratorium and request those rental payments are be made at the end of your current lease. No landlord wants to lose a good tenant who has been timely in the past solely to COVID-19 temporary adverse effects.
· Take the initiative to reach out to vendors, service providers and other creditors. They are all going through similar difficulties and need to know if you are going to need help on delaying payment sooner rather than later.
· Talk to your insurance providers for vehicles, as well as business insurance coverage. Many are willing to defer or lower premiums as a result of this crisis.
· New laws make it possible for most federal borrowers to suspend/defer loan payments for up to six months. Contact your SBA lender or banker ASAP.
· Many utilities and phone companies have stopped cutting off services for nonpayment. Call them and work out a payment plan.
· Most importantly, in critical moments that we are all facing today, make promises you can keep. Everyone you ask for help today deserves the very best effort from you on living up to your word. Remember they have promises to keep too.
Keep in mind, it’s important to plan for the worst but hope for the best. We are in an extraordinarily difficult time that will take disciplined effort to solve problems in this environment. Have faith in your inherent abilities that built your business and be sure to convey that faith and enthusiasm to others. Confidence in yourself, communicated well to the community, can and will make good things happen even in the unprecedented crisis we are enduring today