Further financial relief for business owners comes from the Federal Reserve as they announced that the benchmark interest rate will be set at 0%. Additionally, the Federal Reserve will commence a $700 billion ‘quantitative easing program’ meant to purchase Treasuries and mortgage-backed securities.
What does it all mean for your business?
The move to slash the interest rate to zero means that the Fed is making funds more readily available for banks to access in these times of financial uncertainty. That, in turn, improves the availability of funds to individuals and businesses in need of a financial boost.
In short: If your business is in need of financial aid to overcome the effects of the coronavirus, help is out there.
On the other hand, this announcement also came with some kickback. The stock market reacted by taking a dive this Monday morning, simultaneously resulting from – and contributing to – ongoing concerns connected to the coronavirus outbreak. As the saying goes, it looks like it may get worse before it gets better. But this is all temporary, and things will return to normal soon.
For the time being, if your small business is hurting as a result of coronavirus, be sure to make full use of the resources that are available at your disposal. There’s no sense in rushing to take the first option available, as those options will vary in how well they fit your needs. Be sure to take the time to educate yourself and see what works for your business best. For instance, while interest rates are at 0%, it requires visiting a bank in person (a task that some may want to avoid at this time).
Keep practicing social distancing, and use the Become online business lending marketplace, where you can compare and choose business loans from top lenders before making your decision.