The COVID-19 pandemic shook the entire world for almost a year in 2020 and continues to wreak havoc even today. If we think beyond health, the outbreak had a devastating impact on every sector, predominantly economic activities, across the globe. While big companies could sail through, entrepreneurial ventures and small businesses were the most affected as health concerns, lockdowns, social distancing and other protocols lead to the temporary closure of businesses.
Considering the massive impact caused by the pandemic on small businesses, we are in conversation with Mr. Joshua Triplett regarding the same and expectations to recover.
Mr. Triplett is the owner and executive manager of VIP Capital Funding, a fintech company that provides small business loans to eligible individuals. Below is the excerpt:
1. What was the outcome of COVID-19 on small businesses?
In the tier of businesses, the coronavirus pandemic left its worst impact on small enterprises in the economy. We undeniably understand the urgency of imposing stricter lockdown restrictions. However, these businesses struggled to survive during that phase with inadequate resources at their disposal. Most of them suffered from financial crises depleting their working capital, which eventually hindered the operational activities from running smoothly.
2. What do numbers speak of this impact?
If statistics are to be considered, the no. of active small-time business owners fell by 22%, i.e. to 3.3. million, from February to March 2020. That was the largest and a record drop in business ownership to date.
According to the Small Business Pulse Survey by the US Census Bureau, almost 50% of the small businesses agreed to have witnessed a negative impact due to COVID-19 pandemic. Of them, 20% were financially capable of running the business operations only for 3 months.
The same survey also revealed that around 43% of the enterprises lowered their employee count or closed down the businesses temporarily. The majority had cash to support their activities only for a month.
The situation clearly reflected the terrible cash crunch in this small business sector owing to the deadly pandemic. What became urgent for them was an additional source of funding.
3. What did the small businesses expect regarding their revival?
Well, a bailout package. Most of them looked forward to the government for a package that would pull them out of this situation. They expected support in the form of immediate cash grants and business loans.
4. Was there any response to this expectation?
Well, yes! The US government did respond to such expectations of small businesses. Congress made the CARES Act or the Coronavirus Aid, Relief, Economic Security Act a law on 27th March 2020. This Act is primarily an economic stimulus bill with a valuation of US$2.2 trillion. It aims to help the society’s severely hit segments with easy loans, cash and grants.
The US$953-billion-dollar Paycheck Protection Program (PPP) is also a part of this CARES Act which helps small businesses, NGOs, sole proprietors, self-employed workers and others. These loans are accessible to eligible borrowers through Small Business Association or SBA.
5. How did the PPP perform?
Last year, the PPP slowed down during the US Presidential elections. However, it was revived when the new administration took complete charge and introduced the PPP 2.0. or Paycheck Protection Round 2.
These packages brought the hope back as struggling small businesses now expected to get business loans with better features and address their financing needs effortlessly.
6. How does VIP Capital Funding plan to help these small businesses?
VIP Capital Funding, being a trustworthy lender, is well-equipped to provide financing solutions for every small business need. We ensure affordable business funding so that no borrower has to opt for merchant cash advance, investor funding, commercial bank loans and other such costly financing options anymore.
VIP Capital Funding endeavoured to support small businesses comprehensively. My team and I had personally aided small businesses in availing financial benefits from the government. We assisted owners in receiving PPP loans by filling up their application forms and providing them with financial advice on overcoming challenges.
7. How can people borrow from VIP Capital Funding?
The process to avail a loan from VIP Capital Funding is the easiest. Interested borrowers have to meet our competent experts who will guide them through the entire procedure. We provide no underlying fees or conditions on the credit. They can get the fund within 3 to 4 business days only and utilise it for almost every purpose that’s lawful.
Contact Details
Website: www.vipcapitalfunding.com
Email: [email protected]
Contact no.: 800-735-7754
Will Winston, Vice President
Direct- 919-521-8954
Email- [email protected]
Cheynne Chong, Director of Risk Management
Direct- 919-521-8451
Email- [email protected]
Carlos Hernandez, Senior Vice President
Direct- 919-300-0203
Email- [email protected]
Kenneth Lewis, Chief Financial Officer
Direct- 702-517-3144
Email- [email protected]
