5 Steps to Take Now to Prepare for New Stimulus Funding

It looks likely that there will be a new round of stimulus coming in 2021 for small business owners. The exact details and timing are still up in the air, but we want to help make sure you’re prepared when the time comes to apply for funding and support. Here are some things you can do to start getting ready NOW:

  1. Follow Colorado Lending SourceColorado Enterprise Fund, and DreamSpring on social media or bookmark their websites and check back often. They are all local nonprofit community lenders that participated in the Paycheck Protection Program (PPP) last time and are likely to participate again if there is another round. A portion of the total funding will likely be earmarked for those types of community lenders to distribute, so they might not run out as quickly as banks.
  2. Bookmark the website for the bank you currently have an account with and call them to ask if they are planning to participate in a new round of the PPP. We also recommend making a backup list of other banks you’d be interested in talking to.
  3. Prepare your financial paperwork! If you haven’t finished your 2019 taxes yet, get that done ASAP. Then, get caught up on as much of your 2020 financial records as you can. While we don’t know exactly what the eligibility and rules will be yet, it’s likely that a recent profit and loss statement will be required.
  4. Follow these steps even if you got a PPP loan the first round, as it looks like you will be able to apply for a second one. There will probably be different rules for second loans, such as demonstrating a decrease in revenue, so preparing your financial paperwork is still important!
  5. Follow Small Business Majority for up-to-date and reliable information about COVID-19 relief. Make sure to check out their resource navigation page and sign up for their COVID-specific newsletter. If you weren’t able to attend yesterday’s SBM webinar on the stimulus package, you can watch the recording here.

BONUS: Ryan Flanders, RMMFI’s Capital Manager, will be joining the Bamboo Club meeting on January 5 at 6pm to have an open conversation about loan and grant readiness. We’re hopeful that we’ll have more information on any federal and state stimulus packages by then, so make sure to attend to get all your questions answered. Email patrick@rmmfi.org to get the Zoom link.