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A Guide to Financing Your Business After Coronavirus

By March 10, 2023October 3rd, 2023Funding

We all felt the devastating effects of the COVID-19 pandemic. Across the country and the world, businesses closed their doors, workers were laid off, and life as we knew it came to a standstill.

For small businesses, the effects of the pandemic were particularly harsh. Many small business owners reported losing most if not all of their revenue. In some cases, businesses were forced to close their doors permanently.

If your business is in need of financial supplementing as a result of the pandemic, there are a few things you can do.

Finance your business post Corona Virus:


1. Assess your financial damages and needs moving forward

Before you do anything on this list, you need to evaluate your current situation. Compare your business’ revenue from before the pandemic to your revenue now. What are the areas where you have seen the biggest decline? Which specific services or products are no longer in demand? Use hard numbers and data to figure out your damages.

In addition, take a look at your future needs. What do you think your business will need in order to recover and get back on its feet? Will you need to hire new employees? Will you need to purchase new equipment or inventory? Make a list of all the things your business will need in order to rebound and financially.

All of this will help you to determine how much money you will need to keep your business afloat moving forward. This could include costs such as salaries, rent, inventory, and marketing.

2. Apply for PPP Loan forgiveness

During the height of Coronavirus, the PPP loans offered up to $10 million from banks and other lenders; The loans can be reimbursed by the federal government if your company spends most of the money on the payroll within a given period of time.

Now, in the waning of Coronavirus, there are some steps that you should take if you were among those businesses which applied for a PPP Loan, either in the first or the second round. You essentially need to make sure that you apply for loan forgiveness.

First and second round PPP loans qualify for full loan forgiveness given that the following requirements are met within the 8–24 week period covered following loan disbursement:

  • Employee and compensation levels are kept consistent.
  • The funds are spent on payroll expenses and other legitimate expenditures.
  • At least 60% of the money is spent on employee salaries.

How to apply

  1. Determine whether your lender participates in SBA direct forgiveness and fill out the proper form. If your borrower is participating in direct forgiveness, you must use the SBA forgiveness portal. If your lender is not participating, you must apply through your lender.
  2. Compile all documentation. This includes payroll (bank account statements, tax forms, payment receipts, canceled checks, etc.) and non-payroll (business mortgage interest payments, covered operations expenditures, etc.).
  3. Submit the forgiveness form.
  4. Monitor your application for forgiveness. Once your application has been taken for review, you will be notified. You have the right to appeal this decision if it’s not approved.

As you can see, this is a very logical process as a whole, but there are a lot of extra details when it comes to which documentation is required. For this reason, it may be helpful to seek the help of experts on business loans.

3. Document EIDL Loans correctly

The EIDL Loan is a government-backed low-interest loan. Because it’s a government loan with unusual perks, the government must be sure that the money is spent appropriately. This basically means that your EIDL loan includes accounting and recordkeeping requirements that you may not be aware of.

For example, the section of the EIDL agreement known as “Books and Records” sets your bookkeeping and recordkeeping duties such that you should keep accurate records for the last five years of operation.

Let’s get into exactly what this means.

1. Maintain current records for the following

  • Financial and operating statements
  • Insurance policies
  • Tax returns and related filings
  • Records of earnings or dividends distributed
  • Records of compensation to owners or shareholders

2. Allow the SBA to conduct inspections or audits on the following

  • Books
  • Records
  • Business assets

3. Within three months of the conclusion of your fiscal year, deliver SBA financial statements.

4. If requested by the SBA, get a review of financial statements from an independent public accountant.

5. Allow federal, state, and municipal authorities to submit relevant papers to the SBA if requested by the agency.

How to meet these requirements

Now that you know what is required of you, it’s important to understand how to meet these requirements. Generally speaking, this will involve good recordkeeping practices and bookkeeping methods which will allow you to keep track of your business’ financials on a monthly, quarterly, and annual basis.

More importantly, it is crucial that you track and categorize all of your business’s expenses. All receipts should be kept in an orderly fashion so that you can account for all money spent on the business.

Next, you may find it useful to seek the help of financial advisors, particularly those who specialize in loans for business. These professionals can help you to stay in compliance with government regulations while also ensuring that you are making the most of your EIDL Loan.

Although government regulations surrounding EIDL Loans can be confusing, it is important to understand and comply with them. By doing so, you can ensure that your business is financed in a way that is both responsible and advantageous.


Now that you are aware of the steps you should be taking to protect and finance your business, you can relax a little bit and breathe a little easier. Remember, the most important thing is to keep your business running as smoothly as possible during these uncertain times.

With a little bit of organization and planning, you can make sure that your business is well-equipped to handle anything that comes your way.

Contact Corporate Capital Direct today for expert advice on all things business loan-related. We are happy to help you every step of the way as you navigate these uncharted waters.