Local businesses seek guidance on Small Business Cares Act

Small businesses across the nation are facing unprecedented economic disruption from the coronavirus outbreak.

Many owners are applying for loans to make it through these hard times.

Others have not been as fortunate.

In times of financial uncertainty, there aren’t many resources for small businesses.

However, in northeast Mississippi, many seek guidance from the Small Business Development Center at Mississippi State University.

“I’ve counseled probably 35 different businesses in the last several weeks. A lot of those are pretty extensive conversations, so that’s a large amount. It’s set record levels for us in a short period of time,” said SMDC Director Chip Templeton.

Templeton said a lot of his counseling revolves around something called the Small Business Cares Act, which is broken down into two parts.

The first part is the Paycheck Protection Program.

“That’s something they can get from the SBA to help them primarily with their payroll over a period of time,” said Templeton.

The is second part is an Economic Injury Disaster Loan.

“It’s basically a 3.75% interest rate for a determined number of years and you kind of show what you want it for,” said Templeton.

Odie Keen has worked at Western Auto in Louisville for several years.

He’s seen first hand the effects the virus has had on local businesses.

“There are so many of my buddies that’s got businesses that closed. They’re not making payroll. That’s pretty tough on them. I can’t even understand how they’re making it,” said Keen.

Western Auto, however, can’t keep inventory in stock.

“Booming here, for sure. We’ve been really busy. To be perfectly honest, we don’t have a freezer to sell in this store. Our refrigerators, I can’t get any more for at least a month,” said Keen.

Sadly, not everyone can relate.

Templeton said business owners will have to make some tough decisions over the next few months.

“The main thing you want to do it keep yourself going, and be realistic to know when you should decide that you don’t need to be in business anymore,” said Templeton.

For the most part, he’s remaining positive.

“In my business life, I have probably lived through about three of these things. I would say they’re very similar to it, meaning I have confidence we can get through it,” said Templeton.

Both loans have aspects that may be forgiven over time.

If you’d like to seek counseling from the Small Business Development Center at MSU, click here.