The spike in COVID-19 delta variant cases is posing another challenge for small businesses in South Florida. Even fully vaccinated employees and customers are readopting protective measures, like mask wearing and social distancing, in restaurants, retail shops and service businesses. South Florida businesses should take action to best prepare for an uncertain future.<\/p>\n\n\n\n
The federal government was quick to swing into action with financial support for small businesses struggling to survive after the COVID-19 pandemic struck the U.S. last year. The Paycheck Protection Program (PPP), which we supported at Amerant Bank, allowed businesses to keep employees on the payroll and was followed by other state and local assistance programs.<\/p>\n\n\n\n
But despite the potential economic impact, there is no support in Washington for another round of PPP. Fortunately, the Small Business Administration is offering guaranteed loans with payment subsidies and reduced fees through preferred lenders and other banks for a limited time.<\/p>\n\n\n\n
Regardless, South Florida businesses should take these eight important steps to best prepare for unexpected events, like the current spike in variant cases:<\/p>\n\n\n\n
1. Increase cash reserves.<\/strong> Look closely at your cash flows to see if money can be deposited in a \u201crainy day\u201d savings or money market account. Ideally, there should be enough on hand to pay employees and suppliers for three months of normal operations.<\/p>\n\n\n\n 2. Analyze your cost structure.<\/strong> Could you reduce your rent by moving to a smaller space and having employees work-from-home on a full or part-time basis? Would a modest investment in technology, such as a new app, cut costs or improve customer service?<\/p>\n\n\n\n 3. Look at your insurance coverage. <\/strong>Talk with your agent about business interruption insurance and weigh the costs and potential benefits of such a policy.<\/p>\n\n\n\n