Money – Jaca Huesca http://jacahuesca.com/ Tue, 27 Apr 2021 13:19:36 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.1 https://jacahuesca.com/wp-content/uploads/2021/04/cropped-icon-32x32.png Money – Jaca Huesca http://jacahuesca.com/ 32 32 Small Businesses Used Covid Bounce Back Loans To Invest https://jacahuesca.com/small-businesses-used-covid-bounce-back-loans-to-invest/ https://jacahuesca.com/small-businesses-used-covid-bounce-back-loans-to-invest/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/small-businesses-used-covid-bounce-back-loans-to-invest/

More than half of small businesses have used Covid Bounce Back loans to adapt and invest in their business

More than half of small businesses have used Covid Bounce Back loans to adjust and invest in their business.

Companies took the opportunity to train new staff, introduce new products and update technology, according to data from Starling Bank and Enterprise Nation.

Investing in the future: Companies took the opportunity to train new staff, introduce new products and update technology

The government launched the scheme – which allows small businesses to borrow up to £ 50,000 – last May.

Around 1.53 million loans worth a total of £ 4.65 billion have been made. A survey of 850 small businesses found that 55% used cash to adapt and grow.

Emma Jones, founder of Enterprise Nation, said: “ The money has allowed them to confidently pivot, introduce new products and services such as online ordering systems or boost commerce supply. electronics and improve online marketing. ”

Almost half (48%) said having funding on their reserves gave them more peace of mind. Many have said they would be keen to use the new payback loan program, which offers businesses loans of up to £ 10million.

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Rich countries accused of inflating funding figures for climate change adaptation https://jacahuesca.com/rich-countries-accused-of-inflating-funding-figures-for-climate-change-adaptation/ https://jacahuesca.com/rich-countries-accused-of-inflating-funding-figures-for-climate-change-adaptation/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/rich-countries-accused-of-inflating-funding-figures-for-climate-change-adaptation/

Japan called loans for roads and bridges financing ‘climate adaptation’, while World Bank counted support for Nepal to rebuild after earthquake

Rich countries have overstated the funding they have provided to help the world’s poorest countries cope with the impacts of climate change such as floods and drought, according to an analysis by the charity Care International.

A careful reading of 112 projects representing 13% of global adaptation finance in 2013-2017 found all 25 donor countries collectively overestimated the amount of climate adaptation assistance by 42%.

As part of the UN climate process, the developed world has pledged to mobilize $ 100 billion in climate finance per year by 2020, with a balance between mitigation projects (carbon reduction) and ‘adaptation. During the last count in 2018, they delivered $ 16.8 billion in adaptation finance, according to the OECD – but if the overestimation levels persist, the actual amount could be less than $ 10 billion, Care said.

“This really shows that rich countries are not as concerned about meeting their climate commitments as they should be,” John Nordbo, report co-author and senior climate advocate at Care Denmark, told Climate Home News.

“We got rich by polluting the atmosphere and creating the climate problem. We try to deceive [developing countries] telling them that we are providing them with more money than in reality. It’s a shame, ”he said.

The report released Thursday named Japan as one of the biggest offenders, with an over-declaration of $ 1.3 billion. “He called projects that have nothing to do with climate change adaptation to finance adaptation, like loans for road and bridge construction projects,” Nordbo said.

Exclusive: Japan uses ‘environmental’ fund to finance Vietnamese coal power plant

The World Bank overestimated adaptation funding by $ 832 million. He qualified 86% of the $ 328 million spent on an earthquake relocation project in Nepal as adaptation funding, despite the project responding to a geohazard not caused by climate change.

France has overstated its adaptation funding by $ 104 million. He said $ 93 million had been spent on climate adaptation as part of a program to strengthen local governance in the Philippines. Further analysis showed that only 5% of the budget was earmarked for adaptation, the report notes.

Last month the world the poorest countries appealed to the rich nations to provide more funding to help them adapt to climate change. UN chief Antonio Guterres has urged donor governments and development banks to commit to devoting at least 50% of their climate finance to adaptation and resilience before COP26 next year.

“So far, adaptation accounts for only 20% of climate finance, reaching just $ 30 billion on average in 2017-18,” he said at the Thimphu ambition summit.

This month on Warning from the United Nations Environment Program that annual adaptation costs in developing countries could reach $ 300 billion by 2030.

The Care report was released ahead of the United Nations climate adaptation summit on January 25-26, where world leaders will discuss scaling up financing for adaptation ahead of COP26 in November.

“I hope that governments in the South will talk about this and that donors will start putting more energy into the reliability of their systems,” said Nordbo.


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Small businesses in Kern adapt to survive pandemic | New https://jacahuesca.com/small-businesses-in-kern-adapt-to-survive-pandemic-new/ https://jacahuesca.com/small-businesses-in-kern-adapt-to-survive-pandemic-new/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/small-businesses-in-kern-adapt-to-survive-pandemic-new/

Great Change Brewing had only been open for about a year and was gaining momentum when the pandemic hit it and just about every other small business in Kern County.

The Resnik Court baker had a business model focused on serving inside and selling restaurants to the table. Suddenly it wasn’t going to work and it was time to adjust to an unprecedented disruption in modern life – or die.

Great Change turned to canning, which ultimately worked well with the shift of its catering partners to field service and take out, while advancing the brewery’s branding strategy. Government grants and loans have helped payroll and other expenses, so brewery owners now expect to weather the pandemic.

“It lets you focus and it’s part of running a business,” said co-owner Tim Belmont. “You have to find a way to be nimble enough to survive.”

The coronavirus crisis has pulled the rug out from small American businesses, and not all of them have landed on their feet. But many in Kern County did so, some by accident and others with government support. In other cases, it was bold, reflective action that made the difference.

QUICK CHANGE

Bakersfield wedding planner Colleen Bauer had learned from her contacts on the East Coast that the tsunami was coming, so she took steps to reposition her business, Fairy Godmother Events.

She learned from mentors how to organize “micro-weddings” and began to organize these and, for corporate clients, virtual events for employees.

It worked: couples still wanted to get married and big companies still had to recognize their workers. The business hasn’t grown and made as much money as it once did, Bauer said, but it was able to continue at a time when others didn’t. Now she has said she is filling her 2022 calendar of events.

“If you sit down and throw a pity party saying, ‘COVID shut down my business’ it will end your business,” she said.

ONLINE FEELING

Then there were companies like Taco Bros on downtown 23rd Street. It was well placed with a window to the wheel, but with five employees it was not realizing its full potential as a fresh, attractively priced restaurant offering what was at the time a unique product in Bakersfield: tacos de birria, a Mexican delicacy traditionally reserved for special events like baptisms.

Last summer, the owner took Baylee McCool, a 23-year-old former restaurant waiter with a very personal touch, knowledge of social media and a concern for efficiency, on board. She made a series of operational and marketing changes, and before long, customers from as far away as Los Angeles lined up a block or more.

The restaurant has become an online sensation, now employing more than 20 workers, and plans are underway for a second location in southwest Bakersfield. McCool credits his focus on customer service and his heavy use of Instagram.

“You can have the best food, but that’s actually how you bring it out,” said McCool, now the restaurant’s co-owner. She added that, ironically, the pandemic “helps us a lot”.

OPENING IN ANY WAY

It was a different story for hair salons like Panache A Mark Lamas Salon. The state government twice closed local lounges, costing Empire Drive four months of revenue.

Owner Mark Lamas recalled two key decisions that helped make a difference. One was that he had decided to reopen despite state rules, which meant living in fear that regulators could withdraw his license at any time.

“It was good that they didn’t bother us but it was scary,” he said.

Lamas said he remains grateful for the financial support from the federal and local government that has helped his stylists and kept him up to speed with public services.

The other big step he took was reaching out to salon owners he wasn’t used to talking to. They launched a hashtag on social media, #openoursalons, which brought together former competitors.

“It brought us together,” he said. “If we are all united, we will all be successful.”

PROFITABLE

Kim Belmont, co-owner of Great Change Brewing with her brother-in-law Tim and two others, said the company’s hard work is finally paying off. Customers she hasn’t seen for a year or more return to the brewery to buy her craft beer.

“It took a lot of perseverance to be able to get things done. I think everything pays off. I think we will be able to get back on track here, hopefully by the summer,” she said. declared.

“I would never have guessed that I would have experienced something like this in my life,” she said. “It’s like something in a movie.”


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Klamath’s economy adapts to survive COVID | Local News https://jacahuesca.com/klamaths-economy-adapts-to-survive-covid-local-news/ https://jacahuesca.com/klamaths-economy-adapts-to-survive-covid-local-news/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/klamaths-economy-adapts-to-survive-covid-local-news/

VSResponsiveness has been the name of the game for companies over the past year or so as they struggle to survive what has been billed as a temporary economic recession that would help save lives from a deadly virus.

But now, more than a year after the COVID-related closures were enacted, some business owners fear the economic impact will be anything but temporary.

In March 2020, with fewer than 100 cases of COVID-19 in the state, Oregon’s economy came to a halt. Unemployment has skyrocketed into double digits, and restrictions intended to curb the soaring spread of the virus have made some business models obsolete – from downtown Portland to the vast swathes of the Klamath Basin.

With Governor Kate Brown’s “Stay Home, Save Lives” executive order, restaurants were unable to provide on-site dining, entertainment venues were completely closed, and retail operations had to limit the number of meals. number of customers in their store. It all had to do with the idea that the closures were needed for a few weeks, which then bled in a few months. Emergency orders and “lockdowns” across the country, originally written to last 60 days, have since been extended by more than a year.

Despite the unpredictability, most businesses in Klamath County have survived the pandemic. But business owners and local officials know we’re not out of the woods yet.

Klamath County Chamber of Commerce director Heather Tramp said that while the past year has been difficult, she is worried about many local businesses in 2021. Many will have to start repaying loans from life-saving emergencies granted in 2020.

“I’m actually more worried about this year than last year because all the loans are coming due, as the ramifications of rent moratoriums and non-payment of bills emerge,” she said. “As this continues, it becomes more and more difficult. People have used up their savings. A lot of our small businesses, their personal assets are tied to their business assets, and so over time it has been more difficult to make the various payments that they have received. And it puts their life – everything in their life – in danger.

According to Klamath IDEA, a nonprofit organization, businesses in Klamath County received more than $ 89 million in CARES funding in 2020. Some of that funding includes grants that do not have to be repaid. But there are still plenty of loans, like the Federal Economic Injury Disaster Loan, for businesses that were losing revenue during the pandemic, and the Paycheck Protection Program, which has prompted businesses to keep their paychecks. employees. Lake County businesses have received nearly $ 13 million in COVID relief funding.

Mike Angeli, owner of The Ledge, has seen the ups and downs of 2020 at his independent outdoor store in downtown Klamath Falls.

Although it experienced a rush for its products like kayaks and hiking supplies, backlogs in the supply chain have caused it to go weeks or more without being able to restock the shelves.

“You’ve seen hiking, camping and outdoor sports explode,” he said. “I’ve been doing this for 36 years, and it’s the most (interest) I’ve ever seen, increased tenfold, in 36 years… it became overwhelming with the amount of stuff people instantly wanted.

Once he saw the cleaning regimen he should be implementing at his nearby climbing gym, he decided to focus his time and money on the store. The gym was already struggling before COVID-19 hit and it didn’t have to fire anyone.

Businesses have been creative over the past year to make ends meet, despite restrictions that limited certain business sectors. From curbside service to delivery to redesigning the business model, Angeli wasn’t the only one to shake up its operations to stay afloat.

Due to the unpredictability of shipping, he has changed the way he buys his inventory. He expects to have to do so over the next few years as the pandemic continues to increase and decrease across the world.

“I took the lead as best I could, as much as I could afford, and warehoused and stocked as much of that – to meet customer demand,” he said. “But the demand still exceeded what I had. And I was ahead of a lot of people in my area because I had planned.

If there were any industries that saw their activity increase during the pandemic, Tramp estimated those were home improvement stores, outdoor outfitters and garden stores.

While the slow reopening process is underway, the increased capacity of many retail businesses has been welcomed. However, Tramp said a limited reopening taking effect on days’ notice created staffing issues for some businesses in Klamath County. She noted that school hours and daycare availability also impact staffing and outcomes.

Klamath County’s unemployment rate is still struggling to rebound after the sharp rise in spring 2020. According to the state employment department, the county has recovered about 50% of the 2,730 jobs lost last spring, this which means that about half of them still need to be completed. . The sectors hardest hit over the past year have been recreation and hospitality, education, health services and manufacturing. In Klamath County, the leisure and hospitality industry said it lost 660 jobs over the past year and 220 jobs were lost in public education.

However, some industries have already rebounded. As of December 2020, the Klamath County construction industry had increased by 160 jobs from the previous year.

Klamath County’s unemployment rate in January 2021 was 6.8% compared to 5.7% in January 2020.

The unemployment rate in neighboring Lake County is almost equal to that of last January of 4.5%. South-central Oregon regional economist Damon Runberg noted in his jobs report that “Lake County remains one of the communities least affected by COVID-19 layoffs with employment levels down only 2.2% from last January.

The statewide unemployment rate is 6.1% for February 2021 and the state recovered 46% of the jobs lost when the COVID-19 recession hit in April 2020, according to the employment department of Oregon.

Global virus, local impact

Darin Rutledge, director of the Klamath Falls Town Center Association, acknowledged that the rough road for the past 12 months had been for the small business hub of Klamath Main Street.

Still, he said terrible predictions last spring that one in four businesses would shut down during the pandemic have not come true, especially in Klamath County.

“Small business owners are resilient,” Rutledge said. “They have become innovative. They are really good at adapting. “

Although a handful of downtown businesses have closed in the past year, others have sprung up in their place, filling storefronts that have been empty for years. Rutledge highlighted how the pandemic has fostered entrepreneurship and pushed business owners and workers to find ways to make ends meet.

“Just as businesses adapt, so do individuals,” he says.

He said that so far Klamath County is on track to start even more businesses in 2021. He partly attributed this to a difference in attitude in 2021, compared to the difficult times that came before.

“It seems more temporary (to many) than the 2008 economic crisis,” he said.

Officials in the region said the majority of businesses closed permanently during the pandemic have struggled since the virus arrived and COVID has accelerated closures that were likely already underway.

Tramp was impressed with how the community escalated when COVID-19 restrictions first hampered businesses. She noticed that the focus was on local shopping and eating – and it had immediate effects. She does know, however, that a year later that energy can wear out.

“I know the people who normally eat out two or three times a month would eat out two or three times a week just to help businesses,” she said. “And eventually, it becomes more difficult for ordinary citizens.”

Some sectors that particularly suffered were personal services, such as hair salons, nail salons, tattoo studios, massage therapists and other independent contractors.

Klamoya Casino has closed for months at a time as cases of COVID-19 increased in the region. General Manager Joseph Quiroli noted that even when the casino was open, there was much less traffic in the casino. He attributed most of that to the much tighter family budget this year and a decrease in international visitors to the area for nearby sites like Crater Lake National Park.

“If some of these basic needs aren’t met, you’re unlikely to go out and do things,” Quiroli said. “People worry about their next paycheque, they worry about paying the rent. Their discretionary dollars are not really available. “

At the Crater Lake Junction Travel Center, general manager Michael Thompson said business had been a wash over the past year. Tourism in the area was down, including to Crater Lake. However, trucking traffic in the area was on the rise, he said.

The travel center remained open most of the past year, except for a few 24-hour closures after positive employee tests were confirmed. Thompson said that at the request of the federal government, they have remained as operational as possible to service freight traffic and keep their shelves stocked.

Thompson noted the challenge over the past year, as many customers refused to wear masks or threatened employees who were only doing their jobs and trying to follow the rules.

Another unfortunate circumstance that boosted business at the travel center was the Two Four Two Fire, which set off about 10 miles north of the travel center. The casino and hotel served as an emergency site for the Red Cross, which increased businesses but also put stress on their operations.

Tramp noted, looking into the summer of 2021, that while emergency business loans have been a lifeline for many to keep the lights on, there is still a lot to be understood at the state and federal levels in terms of allocation and receipt of aid. .

While Tramp says she hears every day how tired people are from the lifestyle changes caused by the virus, she urges people to be kind to the waiters, cashiers and other employees who are doing their job. work and try to make a living.

Angeli said the pandemic reminded her of the importance of connecting with those around her, especially her clients.


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Technology is the future and MSMEs need to adapt as much as possible, says HDFC Bank’s Sumant Rampal https://jacahuesca.com/technology-is-the-future-and-msmes-need-to-adapt-as-much-as-possible-says-hdfc-banks-sumant-rampal/ https://jacahuesca.com/technology-is-the-future-and-msmes-need-to-adapt-as-much-as-possible-says-hdfc-banks-sumant-rampal/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/technology-is-the-future-and-msmes-need-to-adapt-as-much-as-possible-says-hdfc-banks-sumant-rampal/

India’s MSME sector is the country’s second largest employer, just behind agriculture. The industry has been heavily battered amid the COVID-19 pandemic, with numerous surveys showing that the disruptions impacted revenues by 20-50% and that micro and small businesses were facing maximum heat.

A year later, however, the recovery is in the air despite the second wave of COVID-19.

Charles Darwin said: “It is not the strongest of the species that survives, nor the most intelligent; it is the one that best adapts to change. “

Sumant Rampal, Senior Executive Vice President, Business Banking and Healthcare Finance, HDFC Bank, believes that MSMEs have become clear winners in the war against COVID-19.

And this has been facilitated by their evolution – making certain changes in their existing structures, especially going digital, in order to survive and thrive.

As the country commemorates a year of nationwide lockdown, SMBStory spoke with Sumant about how MSMEs survived the lane or swim situations posed by the pandemic, what lies ahead and the role banks are playing in developing the sector.

SMBStory [SMBS]: It’s been exactly a year since the lockdown was announced. How have your MSME clients behaved?

Sumant Rampal [SR]: It’s been a year since I started working from home. I remember last year around this time we were all so worried about what was going to happen. We had started to see some signs of weakness in the MSME sector in the last quarter of the previous fiscal year, which started in January because we had started to hear about the impact in China and parts of Europe, so there was a slow down. However, we never expected it to explode like this.

Since no one knew how it would turn out, we decided to manage the situation by interacting more closely with our customers. At HDFC Bank, we created small teams and had conversations with our clients through digital and physical channels. It gave a lot more clarity: how we felt they should be saving money, what support we could offer at that time, and how we engaged with the government and the regulator.

Therefore, the moratorium and the other programs put in place by the government were very good steps. Recovery figures increased in November and December. People were returning to factories, festivals like Dussehra and Diwali pushed demand and spurred recovery.

From my reading of our clientele, most MSMEs have proven to be winners in combating COVID-19.

SMBS: How have the measures put in place by the government helped the sector?

SR: The programs of the Aatmanirbhar Bharat Stimulus Package are the best that the government can offer, especially the Emergency Line of Credit Guarantee System (ECLGS). I really thank the government for thinking about this and executing it with the help of National Credit Guarantee Trustee Company (NCGTC).

We have also seen sectors such as agriculture and sustainable consumption doing very well. Many companies in this sector have recovered by 80 to 90 percent; some even recovered 100 percent. There are others who have recovered from 65 to 70%.

We need to understand that the recovery does not happen overnight, but we are seeing the positivity.

Now, with Wave 2, the mood has eased, but the good news is that the government has realized that a lockdown is not the solution. As a country, too, we are much better prepared in terms of health infrastructure to deal with the situation.

SMBS: How is HDFC Bank becoming easily accessible to MSMEs through digital means? What efforts has the bank undertaken for this sector?

SR: We are one of the best banks to have sanctioned and disbursed loans worth Rs 23,000 crore as part of the ECLG program. We see ourselves as a beneficiary of technology and digitization, and our goal has been to ensure that our MSME clients have the same benefit. Today, any customer in the MSME segment can provide their basic documentation digitally. Our digital product ENet and our SME service portal let customers contact us directly. It also helps us provide working capital loans, overdraft facilities and meet their other financial needs.

Another product, Trade on Net platform, aid for trade (import and export) digitally. 89% of my clients use this platform. All of these products and initiatives have supported MSMEs in their daily work.

As a bank, if I’m able to help my clients collect payments and complete transactions faster, it saves them a lot of time and that’s where the biggest benefit lies.

We have seen that customers who have used these technologies generate profits and those who do not suffer from certain inefficiencies.

SMBS: What factors do you keep in mind when onboarding a client?

SR: Our aim is not only to help MSMEs with financing, but also to provide better guidance on their overall banking needs. We overestimate cash flow; this is the first thing we look at before structuring lending transactions.

We prefer clients who are able to provide financial information and records digitally. We also say never hide your balance sheets, whether they are good, bad or ugly.

SMBS: Will the pandemic change the way you assess and assess MSMEs?

SR: This is a very risky segment and can only change with better behavior from these companies. When I say this, I am relying on reports from the Reserve Bank of India and other credit rating agencies in terms of the underperforming behavior of this particular segment. Unfortunately, their track record is not the best.

But we see transparency coming in. With government initiatives like the goods and services tax (GST), the ability of a bank like ours to structure financing is improving.

COVID-19 is a challenge, but technology is the future and MSMEs need to adapt as much as possible.

SMBS: There are currently many digital financial enablers in our country – fintechs, NBFCs, etc. This appears to have overloaded the MSME lending ecosystem. What do you think?

SR: The fintechs that I have seen emerging over the past few years largely meet the very small ticket requirements of MSMEs. Additionally, I think fintechs would be forced to respond to the needs and investments that MSMEs need.

Banks, on the other hand, are very well oiled in helping MSMEs take charge of their cash flow and trade facilities.

That said, fintechs are an important tool in helping these small businesses get started and create good financial behavior.

In the times to come, I see a lot more fintechs and banks working together; there is much more the two can do together.

SMBS: Going forward, what are your plans to expand your MSME loan portfolio?

SR: Currently, we have four lakh clients in 545 districts in india. We plan to cover 630 MSME clusters in the coming times. Our goal is also to speed up our approval rates and be able to process a transaction (end-to-end) in less than a week – from the moment you meet the customer to the moment the money is disbursed.


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Creative ways to support your business if PPP has overtaken you https://jacahuesca.com/creative-ways-to-support-your-business-if-ppp-has-overtaken-you/ https://jacahuesca.com/creative-ways-to-support-your-business-if-ppp-has-overtaken-you/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/creative-ways-to-support-your-business-if-ppp-has-overtaken-you/

Some 72 percent of those who attempted to apply for a Paycheck Protection Program loan were successful in submitting their application. This left around 28% of small business owners on the outside, who tried unsuccessfully to apply for P3 loans.

While the federal stimulus would likely have brought welcome relief to companies trying to keep their finances above water, the lending program is not the only way to support results.

Smart business spoke with Kurt Kappa, Director of Loans at First Federal Lakewood, on some of the ways that businesses that haven’t received PPP loans can stay afloat.

What financial support can companies turn to if they have not obtained a PPP loan?

If the lack of a second stimulus package has forced a company to explore other avenues to access capital and none of them fit, one solution is to find a new perspective. Use small banks to access the various business loan and grant programs offered by the US Small Business Administration and local government agencies. These institutions tend to have excellent partnerships with local municipalities and economic development organizations offering community-based loans that businesses are eligible for.

What other measures could companies take to compensate for the revenue shortfalls?

When the traditional way of selling your product is no longer feasible due to the pandemic, explore other options. Many companies are turning to new channels. For example, there has been a significant shift towards e-commerce for businesses that have products to sell. The channel has become much more popular given the social distancing imperative we are under right now. Third-party online shopping platforms like Amazon or Etsy can help businesses reach new customers who may remain after the pandemic.

Businesses also have the option of asking, “Is my current business model working?” Now may be the time for companies to change the mix of what they sell to better match what people are looking for, or companies may need to adapt their products and services – for example, during the pandemic , distillers began to manufacture hand sanitizers and personal products. the trainers animated their sessions via video platforms.

Companies are finding that they have to do more with less, including by requiring staff reduced by layoffs to work harder and often for less pay. Companies affected by the tightening of the purse strings and pay cuts should consider incentives and non-financial benefits to attract, retain and motivate employees. Consider perks like extra days off, creating time for passionate projects, or flexible working arrangements as incentives and rewards.

How can bankers help businesses find ways to address their financial concerns?

Small businesses should consider all of their options, from redesigning business models to online pivoting to restructuring their debt. A reorganization of a company’s debt can allow it to assess its cash flow needs and give it the opportunity to stretch or even reduce some of its debt payment obligations. It is also a good idea for a business to ask a banker for the eligibility and availability of additional loan and grant programs.

Small businesses haven’t had it easy in 2020 and early 2021. First, shelter-in-place orders have forced many businesses to take a break. Then, phased reopening, challenges in securing federal financial assistance, and ever-changing rules and regulations continue to force businesses to pivot again and again. Almost all businesses have had to adapt to changing customer needs in order to stay afloat beyond the support of government assistance. Now may be the time for companies to re-evaluate their models and embrace reinvention.

INSIGHTS Banking is brought to you by First Federal Lakewood


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Norterra businesses fight pandemic, adapt https://jacahuesca.com/norterra-businesses-fight-pandemic-adapt/ https://jacahuesca.com/norterra-businesses-fight-pandemic-adapt/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/norterra-businesses-fight-pandemic-adapt/

Some businesses in northern Phoenix have taken the brunt of the pandemic head-on and appear to be doing it on the other side as the Arizona governor eased occupancy limits statewide.

Earlier this month, Gov. Doug Ducey announced he would rescind previous executive orders that limited the number of people who can be in a business at any given time.

The owner of Crumbl Cookies at the Shops at Norterra takes advantage. Sydney Herring opened her store, 2450 W. Happy Valley Road Suite 1151, in April 2020, just as the pandemic was starting.

“We were lucky enough in this situation,” Ms. Herring said. “Even during the pandemic, people loved coming for cookies. It is a happy place for them at a time of so much uncertainty.

“One thing to think about that a lot of companies did was try to adapt and be understanding. Everyone was having heartache. We try to accommodate some requests and donate when we can in the health field. “

Last year, executives at Mellow Mushroom shut down the business on March 17 and strictly switched to a 100% take-out model.

Keith Correa, district manager for Mellow Mushroom at 2490 W. Happy Valley Road, said he waited a week after the governor’s orders not to allow food services in restaurants. The chain has five Valley pizzerias.

Mr. Correa said he wanted to know which methods were most effective and which were ineffective. Since then, take-out sales have more than doubled. The restaurant’s curbside service, which was instituted in 2020, has also been a success.

“I wanted to see what the others were doing,” he said.

Mr Correa said business “was behind” last year’s figures, but said he hoped the pizzeria can catch up and keep pace.

Norterra businesses have received help.

Dan Dahl, real estate director at YAM, said officials had worked with tenants to develop innovative ideas such as hosting drive-in movie nights in the mall. Officials touted take-out services from tenants at the downtown restaurant.

YAM Properties owns and operates over 12 properties in the metro area. The company is a Scottsdale-based real estate investment and development group made up of Bob Parsons, the founder of GoDaddy, who has branched out since the sale of the company into various businesses, including real estate.

Mr Dahl said his group has helped maximize outdoor space and opened up previously closed roads to allow convenient access to restaurant pickup. His team has also designated nearby parking spaces for driver efficiency.

The YAM Properties team also took to social media to help potential clients shop at Norterra and Westgate, another property owned by the company, and let clients know they were open, said Mr. Dahl.

“Social media has been a lifeline for many as they have been able to adapt quickly to difficulties and deliver messages that could be aimed at supporting the bottom line,” Dahl said. “At Westgate in particular, we’ve tried to keep things as ‘fun’ as they could be. We hosted a free virtual Easter egg hunt, fitness classes and more. We wanted our community to know that we are always there as a bright light – living up to our slogan: ‘Westgate, where the fun happens’. “

YAM Properties has added more than 30 tenants to various commercial properties in recent months, according to a press release earlier this month.

Ms Herring said her landlord had helped with rent for “a month or two,” but the business had not needed to take out small business loans during the pandemic. She said business was good.

Now Ms. Herring is looking to open an additional location.

“So busy and so good,” Ms. Herring said. “The holidays are always a busy time of the year with parties, gifts, gatherings, etc. We love it! ”




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How Debt and Climate Change Pose ‘Systemic Risk’ to the Global Economy https://jacahuesca.com/how-debt-and-climate-change-pose-systemic-risk-to-the-global-economy/ https://jacahuesca.com/how-debt-and-climate-change-pose-systemic-risk-to-the-global-economy/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/how-debt-and-climate-change-pose-systemic-risk-to-the-global-economy/

Debt and climate talks are expected to intensify in the run-up to the November climate negotiations, where money is expected to be one of the main sticking points. Rich countries fall far short of delivering the $ 100 billion pledged per year to help poorer countries cope with the effects of global warming. On their own, low- and middle-income countries owed foreign lenders $ 8.1 trillion in 2019, the most recent year for which data is available – and that was before the pandemic.

At the time, half of all countries the World Bank classified as low income were either in what it called “debt distress or at high risk.” Many of them are also extremely vulnerable to climate change, including more frequent droughts, more severe hurricanes and rising sea levels that wash away the coasts.

(The fund said on Monday it would not force 28 of the world’s poorest countries to repay their debt until October, so their governments can use the money for emergency relief from the pandemic. )

Lately there has been a gust of proposals economists, lawyers and other at address the problem. Details vary. But they all call on, in one way or another, rich countries and private creditors to offer debt relief, so countries can use those funds to move away from fossil fuels, adapt to effects of climate change or obtain a financial reward for natural active ingredients they already protect, like forests and wetlands. Widely circulated proposal calls on Group of 20 (world’s 20 largest economies) to demand lenders provide relief “In exchange for a commitment to use part of the new fiscal space for a green and inclusive recovery. “

Across the world from Belize, the low-lying Pacific island nation of Fiji has seen a succession of storms in recent years that have resulted in destruction and the need to borrow money to rebuild. The pandemic has caused an economic downturn. In December, Tropical Cyclone Yasa destroyed homes and crops. Fiji debts have skyrocketed, including China and the country, whose very existence is threatened by rising sea levels, have scaled back planned climate projects, according to World Resources Institute research.

The authors proposed what they called a climate-health-debt swap, in which bilateral creditors, namely China, would write off part of the debt in exchange for climate and healthcare investments. health. (China has not said anything publicly about the idea of ​​debt swaps.)

And then there is Mozambique. The sixth poorest country in the world.

It was already fall into huge debts, including secret loans the government had not disclosed when back-to-back cyclones returned in 2019. They killed 1,000 people and left more than $ 870 million in physical damage. Mozambique has taken out more loans to cope. Then came the pandemic. The IMF says the country is in over-indebtedness.


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8 things to do after your PPP loan https://jacahuesca.com/8-things-to-do-after-your-ppp-loan/ https://jacahuesca.com/8-things-to-do-after-your-ppp-loan/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/8-things-to-do-after-your-ppp-loan/

You’ve got your PPP loan, spent it right, and hopefully you’re eligible for a full discount. Congratulations!

And after?

Here are six steps you can take right now, after your P3 loan, to ensure your business continues on the path to recovery.

1. Master your accounting

If applying for PPP was difficult because your accounting was not up to date, now is the time to address this issue. You’ll either want to develop a system for you (or an employee) to keep your books up to date, or you’ll want to work with an accountant or accounting professional who will do it for you. Either way, your bookkeeping shouldn’t be something that waits until tax time. At a minimum, records should be entered and accounts reconciled monthly if you just can’t tackle them daily or weekly (which I recommend).

2. Make sure your cover

Every small business needs insurance coverage ranging from workers’ compensation to general liability and maybe even a commercial auto policy. Depending on the nature of your business, the industry you are in, and a number of other factors, this is probably a good time to assess your business insurance needs to make sure you have the coverage you need.

3. Separate business and personal finance

Many businesses have had difficulty with their PPP loan application because it was not clear what was a personal expense and what was a business expense. It is just not a good idea to combine funds. If you haven’t already, open a business bank account. You should know that there are many small business lenders out there who won’t even consider your small business loan application if you don’t have a separate business account.

4. After your PPP loan, update your business plan

Your business plan should be a living document, updated when conditions change. Many business owners find that they need to revise their business plan to adapt to new economic realities. You may find that your business landscape is changing rapidly; your business plan must adapt.

If you’re struggling to change your business approach, take advantage of free help from SBA resource partners such as Small Business Development Centers (SBDCs) or SCORE. Both offer free mentoring and other resources for small business owners.

5. Consider a second draw PPP loan

If you haven’t secured a second PPP loan, you may be able to apply for one. The rules for Second-draw PPP loans are a little different from first draw loans. You will need to demonstrate a reduction of at least 25% in revenue in a quarter of 2020 compared to 2019 (or year over year). If you qualify, however, you can get a second round of funding which may also be forgivable.

Business owners who are self-employed may find that they qualify for more financing the second time around as they can now calculate their loan amount based on gross income rather than net profit. And businesses with a NAICS code that starts with 72 (like restaurants or hospitality businesses) can receive 3.5 times the average monthly payroll, instead of 2.5 times the average monthly payroll as in the first round.

6. Line up a line of credit

Many small business owners are still struggling with cash flow. Even those with strong incomes may find that their customers pay more slowly. When businesses can’t collect from other businesses, it can create a domino effect that impacts suppliers and sellers.

A line of credit can smooth your cash flow while giving you peace of mind. You will only pay interest on your outstanding balance. This means you won’t have to borrow before you need it. The best time to get a line of credit is before you need it urgently.

7. Get a business credit card

A business credit card provides a line of credit that is available when you need it. Even if you pay off your balance in full each month, you will have more time to pay for the items you charge, depending on when you make the purchase. And if you need to take advantage of your card’s line of credit, your interest rate may be lower than other types of quick finance.

Finally, many cards offer lucrative rewards, including cash back or points that can be used for travel. (We will be traveling again at some point!)

8. Consider an EIDL loan

If your business is still struggling, an Economic Disaster Loan (EIDL) can provide critical financing at low cost. Your claim will be assessed to determine “economic harm,” so this SBA loan is not for businesses that have not been affected by the pandemic. The SBA recently raised the limit for EIDL due to the COVID-19 crisis from $ 150,000 to $ 500,000. The interest rate is 3.75% for 30 years. The SBA requires acceptable personal credit and collateral is required for loans over $ 25,000.

This article was originally written on April 2, 2021.

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More than half of SMEs use bounce loans to grow https://jacahuesca.com/more-than-half-of-smes-use-bounce-loans-to-grow/ https://jacahuesca.com/more-than-half-of-smes-use-bounce-loans-to-grow/#respond Wed, 07 Apr 2021 23:13:48 +0000 https://jacahuesca.com/more-than-half-of-smes-use-bounce-loans-to-grow/

More than half of UK businesses (55%) that took out a loan under the government-backed Bounce Back Loan Scheme (BBLS) used the money to adapt and grow, according to a new report from Enterprise Nation and Starling Bank.

Research suggests that BBLS loans have played a role beyond survival in the face of the pandemic.

While a third (36%) of small and medium enterprises (SMEs) used their BBLS loan to pay bills, 35% kept funds in reserve and one in four (27%) used the cash to invest in their business. This investment includes the introduction of new products and services (27%), the introduction of new technologies (13%), the upgrading of staff and retraining of staff (13%) or the intensification of marketing efforts. (24%).

Enterprise Nation, which provides support and advice to small businesses, surveyed 850 of its members. Respondents were asked a series of questions about their borrowing, including BBLS, over the past year.

Among respondents, almost half (48%) said having the funds in reserve gave them peace of mind during a difficult time and / or gave them greater confidence to innovate, adapt or diversify their business. business (36%).

Of the small businesses surveyed, 18% reported “significant growth” in the loan and 37% said the loan provided some return.

The study also indicates that interest in the government’s new stimulus loan program is high, with seven in 10 small business owners who took out a bounce loan (70%) saying they would consider applying. or the equivalent of one in four SMEs (25%).

Helen Beirton, Director of Banking Services at Starling Bank, said: “Bounce loans have been a lifeline for SMEs. Not only has the funds enabled them to pay the bills and maintain critical supply chains, it has also enabled them to find the funds needed to adapt their business model and better ride the wave of the pandemic. “

Figures from HM Treasury show more than 1.53 million rebound loans have been approved since the program started last May, with £ 46.5 billion loaned to small businesses – around £ 30,000 per company.

Emma Jones, CBE, founder of Enterprise Nation, said: “What this research shows is the resilience of small businesses. Although many took out a loan for the first time, they put the funds to good use.

“The money allowed them to confidently pivot, introduce new products and services such as online ordering systems or strengthen their e-commerce offering and improve their online marketing. It must be a relief for the government to hear. “


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