On Friday, March 27, 2020, after debating and politicking for a week, Congress passed the Coronavirus Aid, Relief and Economic Security Act. The president signed it on Saturday. There are plenty of provisions in this bill designed to help small business owners, which includes startup founders.
If you are a founder of an African or Latin American startup that is domiciled in the US, you should also examine the new law to see how your company can be eligible for a grant or loan depending on how COVID-19 was impacted your business. You and your tax preparer or company accountant (or both) should look through the bill and discuss any advantages the company can qualify for. Then carefully assess whether it makes sense for your business. Remember to heavily consider your current and future cash flow so that you are able to service any debt in a timely fashion. Debt can be helpful to bridge expenses to the next fundraising round, the next big client or until your target market comes back online to full business and able to pay you again.
Your investors can help with advise here or as a sounding board. They may be able to connect you to professionals you need without incurring costs. Lean on them during this time. We really do want to be of help to you in any way. Reach out to your investors even if you haven’t heard from them. Remember, they are also adjusting to quarantine life regardless of where they may be based in the world. Show us some grace as you hope they show you.
Ultimately, this season will test us all to lead with compassion and creativity. Both founders and investors alike will be remembered for how they were treated during this time. Be kind and super helpful, with healthy boundaries. We get through this stronger than ever.
Source:
Read the Senate’s full coronavirus aid package bill (NPR)