SBA sets opening date for Restaurant Revitalization Fund. Here’s when you can apply.

by Company NewsIndustry News
Andy Medici

The Small Business Administration is officially opening its much-anticipated Restaurant Revitalization Fund to applications on May 3, the agency said in a Tuesday announcement.

The agency said it will allow businesses to register ahead of time, starting April 30, and once the portal opens, it will remain open until the $28.6 billion in program funds are exhausted. The program provides restaurants and other eligible businesses with grants of up to $10 million and must be used on eligible expenses by March 11, 2023. We covered those details here.

“Restaurants are the core of our neighborhoods and propel economic activity on main streets across the nation,” said SBA Administrator Isabella Guzman in a press release. “They are among the businesses hardest hit and need support to survive this pandemic. We want restaurants to know that help is here.”

Businesses can register to start the application process here beginning April 30.

The SBA recommends that eligible businesses set themselves up for a smooth experience by reviewing the official guidance, gathering the required documentation and attending one in a series of live webinars to be held in the days preceding the official opening. One webinar is available on Tuesday and two are available on Wednesday.

The SBA also recently announced that restaurants will be able to access their applications and the data they need to fill out their applications through service providers including Clover, NCR Corp., Square and Toast as part of what it called a “groundbreaking collaboration” to help deliver the relief funds.

The funding, however, likely will only last “a matter of weeks” according to Sean Kennedy, executive vice president for public affairs at the National Restaurant Association.

“We know from webinars we’ve hosted and discussions with our state partners that demand and need are still very high, and with this level of preparation, we believe that it’s very likely the $28.6 billion fund will be gone in a matter of weeks, possibly only a few,” Kennedy said in a statement. “We expect that day one numbers will be through the roof. We will continue to work with SBA and our members to ensure the application process goes smoothly, even as we’re alerting Congress to our concerns about the limits of the current funds.”

He stressed that the SBA has been focused on getting the application process up quickly and done right and is doing everything it can to educate restaurants on how to apply.

But even when the portal opens, the agency will prioritize applications from businesses owned by women, veterans, and socially and economically disadvantaged people for the first 21 days.

The rollout of the Restaurant Revitalization Fund marks the latest step for a lineup of pandemic-relief programs and efforts by the SBA. The SBA recently created a way for small businesses to appeal denials from its Targeted EIDL Advance program, which we wrote about here. The agency also has rolled out a supplemental grant for the hardest-hit businesses.

The agency additionally has said it was more than tripling the maximum size of its Economic Injury Disaster Loans from six months’ worth of economic injury — or up to a maximum of $150,000 — to 24 months of economic injury with a maximum loan amount of $500,000. But it is also working to increase that new limit up to the $2 million statutory limit.

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2021’s Top Trends in Equipment Financing

by Industry News

10 Trends to Watch

Our world changed dramatically over the past year with many working from home, social distancing and video conferencing as a result of COVID-19.

Fortunately, the vaccine has brought about hope for a return to normal, and as restrictions lift, the economy is set to rebound. This year will be a crucial one for many business owners, especially those making decisions regarding financing equipment.

At Global Financial & Leasing Services (GLFS), we stay on top of the latest trends in equipment financing to better serve our customers, helping them not only obtain financing for equipment purchases, but also being a source of valuable industry information. These are the top 10 trends to keep an eye on as you consider equipment financing in 2021.

  1. 2021 is still unpredictable.

In 2020, we learned just how quickly the world could change as COVID-19 drastically altered business operations and consumer habits. Things are looking up in 2021, but there is still uncertainty about virus variants.

Whether we can return to some sense of normalcy will depend on vaccine rollouts, which have been ramped up, but are still inconsistent. Other impacts of the pandemic — such as volatility in the stock market, small business losses and potential inflation — still linger as well. Successful business owners in 2021 will need to expect the unexpected and prepare accordingly.

LEARN MORE: Love in the Time of COVID-19

  1. The political landscape is changing.

The transition of power to President Biden could impact business decisions in various ways. Congress and the Biden Administration will likely increase regulation — especially in the realm of environmental policy. Taxes may increase as well.

On the state level, governors are under increased pressure to close budget gaps, which may also result in increased business or consumer taxes. States may also adjust their consumer financing laws to address issues that result from post-pandemic growth.

  1. Expect more growth in the second half of the year.

The first half of 2021 still looks relatively bleak for some industries. COVID-related restrictions and low consumer spending have extended the economic impacts of the virus.

However, this trend is expected to subside as more people become vaccinated and more restrictions are lifted. In the latter half of 2021, economists expect GDP growth to pick up to nearly 5% as the country returns to normal. Smart businesses will prepare for an uptick in consumer spending by the end of the year.

  1. Increased demand from China will boost U.S. businesses.

China is one of the few major countries whose economies weathered the pandemic relatively well. Barring an increase in tensions between the U.S. and China, demand for U.S. products should increase as China’s consumer spending rebounds.

This uptick in demand will help propel U.S. manufacturers and the economy forward. Manufacturing businesses should prepare for this demand accordingly, especially when it comes to shipping.

  1. Consumer habits will evolve post-pandemic.

As the government lifts pandemic restrictions, workplaces will return to some sense of normalcy. More employees will return to offices, and increased consumer spending will allow businesses to boost hiring and production.

The technology upgrades, lessened business travel and reduced need for commercial space that began during the pandemic are also likely to continue in a different fashion. Many workplaces intend to use a hybrid model that allows some employees to work from home full- or part-time, and they will continue to use videoconferencing solutions instead of traveling for business trips. Most businesses will therefore look for services that offer bundled, personalized packages that meet their needs.

  1. Medical, construction and manufacturing equipment will be in high demand.

Demand for certain types of equipment is expected to grow as COVID-19 subsides. Medical equipment, for instance, is already showing growth as vaccine rollouts intensify, and once hospitals can resume more elective procedures, this sector is expected to explode. Likewise, demand for manufacturing equipment is set to increase as consumer spending bounces back.

Some types of equipment, including construction equipment, have been on the rise throughout the pandemic. More people are building or renovating homes, driving up demand for construction. Additionally, as workplaces convert their commercial space, construction equipment will remain on the rise.

  1. Smart technology will continue to grow.

Many companies, including equipment finance lenders, have begun to increasingly rely on smart technology to do business. This trend is only expected to continue through 2021.

Electronic transactions with lenders, such as e-signatures, will likely continue to expand. Even without the need for social distancing, these kinds of contactless purchases can often be more convenient for lenders and businesses. Lenders will keep growing their e-commerce capabilities to streamline operations and improve client relations.

  1. Cybersecurity will be essential.

The pandemic forced us to move many of our transactions and interactions online. This has enhanced the need for heightened cybersecurity measures to keep our data safe.

Many companies will need to invest in IT infrastructure to enhance their cybersecurity capabilities. Good security protocol provides peace of mind for customers and employees, making it an essential investment for most businesses.

  1. Many businesses are poised to make major purchases.

Although 2021 is still uncertain, companies are becoming more confident, and many are looking to make smart investments. Some plan to invest in software to boost their remote capabilities while others are ramping up for post-pandemic economic growth.

Overall, business investment is expected to grow by nearly 8% this year thanks to this uptick in spending. Smart business owners will think ahead and stay ahead of the curve by making important investments early on.

  1. More companies will acquire equipment through financing.

Most businesses took a financial hit during the pandemic, causing them to realize the importance of keeping cash on hand for emergencies. The Federal Reserve has also lowered interest rates, allowing companies to borrow money more easily. Therefore, more businesses will likely choose to finance their equipment purchases in 2021.

READ MORE: Why Your Business Should Keep Cash Reserves

If your company plans to finance equipment this year, be sure to look for a trusted partner like GLFS. Contact us to learn more about what to expect in 2021 and how we can help your business prepare for the year ahead.

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How to Attract Qualified Operators to Make the Most of Your Financed Equipment

by Business AdviceIndustry News

Hiring and Retaining the Best Talent Starts with Writing the Job Description

Prior to the global pandemic, the national unemployment rate was low, leaving millions of jobs unfilled. COVID-19 struck and unemployment soared, but with economic activity resuming, the unemployment rate fell to 7.9% in September.

In talking with our clients, we’ve noticed that finding and keeping “good people” are top priorities, even for those currently experiencing a slowdown in business. Eventually, a rebound will occur and business owners want to be ready to hit the ground running with the best operators in their equipment’s driver seats.

Our team has heard that employers have found their best employees from just about anywhere—word of mouth, Craig’s List, Facebook, online job sites like Indeed and more. No matter where or how you advertise your job openings, attracting qualified and experienced operators for your equipment starts with the job description.

Attract Quality Operators with a Two-Punch Job Description

We get it—you’re busy, and it’s easier and less time consuming to use the same job description over and over again. The reality is that there is a difference between what you post online to get candidates interested in working for your company and the specific job description you send to applicants who show interest in a specific position.

Your general online job posting should include information about the company AND the position. This is your chance to highlight your company culture and get applicants excited about the prospect of working there. You should include a general idea of what a specific position entails, but the focus is on the company. Happy employees who enjoy their work environment are less likely to leave, so cultural fit is key.

A detailed job description can be added to the online post or sent in a separate document to applicants who request more information. This is the time and place to get into the details. Be specific about job requirements, expectations, qualifications, experience and certifications. Remember, you’re putting this person in charge of equipment. Hiring inexperienced operators can cost you in terms of project quality and equipment performance. Plus, not fully disclosing job requirements can land you in court should you fire an employee for lack of fulfilling job duties and he or she claims the requirement wasn’t clear.

The Most Important Words to Include in Your Job Posting

“Other duties as required.” Job roles evolve over time and more quickly for smaller businesses that are growing or cutting back. You may have to ask employees to take on more or share responsibilities as your staff size increases and decreases based on work load.

Begin the job description with a 30,000-foot overview of the responsibilities, then include shift and physical requirements, non-negotiable certifications and work conditions that might filter out unqualified applicants. This also is where you can touch on expected “people skills” that are important, especially if the position is customer facing. Think about the environment and conditions, this employee will work under and describe those so that the candidate need not apply if you’re seeking night shift and he or she is only available for day shifts.

Be Aware of Gender, Age and Typo Traps

Quality operators want to work at quality companies. Your job ads, descriptions and even online company reviews make your business’s first impression on job seekers. For positions where details are important, a posting with typos won’t grab the attention of a detail-oriented employee.

Avoid using language that can be considered discriminatory. Even in fields that are heavy equipment related, women are qualified candidates in a traditionally male-dominated industry. Same goes for age. With age comes experience, which is important when you’re putting an employee in charge of expensive equipment in any field.

In preparation to return to pre-pandemic tight employment numbers, now is the time to begin thinking about your hiring strategy to find and retain the most qualified employees—ones whom you can trust to expertly operate your financed lease equipment. Finding the best candidates starts with writing your best job description.

Close-up of a construction site excavator

Who Finances Heavy Equipment Leases?

by Industry News

Anyone who doesn’t want to purchase outright or may not qualify for a loan through traditional bank funding.

Heavy equipment handles heavy work and commands a heavy price. Paying that price can pay off in terms of business growth and other benefits. There are a few ways that companies can add heavy equipment to their fleets. Buy outright, partner with another company to share heavy equipment assets, finance a purchase loan, and finance a heavy equipment lease. The last is a popular choice because it comes with many benefits.

But before we get to the benefits, let’s lay the foundation about heavy equipment and financing a lease.

What does it mean to finance a heavy equipment lease?

Heavy equipment lease financing means you get a loan to finance your new or used equipment, so you don’t have to purchase it outright. The equipment itself acts as collateral for the financed lease.

What types of equipment fall under the “heavy” category?

Heavy equipment, also called construction equipment, includes equipment that moves earth, performs construction or does similar heavy-duty work. Examples of such equipment include:

  • Bulldozers
  • Engineering equipment
  • Forklifts
  • Tractors
  • Excavators
  • Backhoes
  • Material handlers
  • Pavers

Lease Financing isn’t Only for Cash-Strapped Business Owners

Even with sufficient cash to purchase heavy equipment outright, many business owners choose to reserve their cash for working capital or invest it in other activities that spur growth. Others prefer to take advantage of lease agreements specifically designed for the heavy equipment industry, as well as their company’s future needs and budget given the hefty price of such machines.

Heavy equipment’s hefty cost makes even the largest businesses pause. When you’re a small business or your credit isn’t perfect, obtaining heavy equipment is even more difficult. Financing your heavy equipment lease is ideal for businesses that need to get used or new equipment but can’t afford or don’t want to make payment in full or may not qualify for a purchase loan through traditional bank funding.

READ: Financing an Excavator: Even if You Have Bad Credit

Take Advantage of the Tax Benefits

Financing a lease for your heavy equipment comes with tax benefits that incentivize business owners to start or expand their companies.

Under Section 179, you can deduct the full cost of heavy equipment up to $1 million in the year of purchase. Section 179’s advantage is that you don’t have to depreciate the cost of the equipment year over year, taking the tax savings in one year.

If you don’t qualify for Section 179 or your tax professional suggests against it, another option is to write off loan interest or lease payments as business expenses on your tax return.

Another option is to depreciate your heavy equipment every year and take a small tax deduction over the useful life of the equipment. A conversation with your tax expert or accountant can help ensure you take advantage of the tax benefits of financing a heavy equipment lease.

READ: Why Put Profit Above an Equipment Lease Payment?

Global Financial & Leasing Services (GFLS) works with many business owners to help them get the heavy equipment they need. Begin the application process and our team will do everything we can, plus we can approve heavy equipment lease financing in as few as 24 hours.

Coworkers team brainstorming

Love in the Time of COVID-19

by Industry News

As relief is announced to help small businesses, GFLS is supporting brokers, too.

As of this writing, the country is grappling with COVID-19. With livelihoods and lives at stake, states and the federal government are hashing out legislation to support affected people and businesses. Here in Arizona, where Global Financial & Leasing Services (GFLS) is headquartered, loans up to $2 million are available from the U.S. Small Business Administration (SBA) to small businesses hurt by COVID-19 pandemic.

The longer the virus and the financial slide that accompanies it continues, the more significant the toll to businesses and the economy. With government stimulus packages available and communities rallying around local small businesses, GFLS is supporting brokers, too, since they are an important part of the economic equation.

This is an unprecedented time for everyone. But, there are a few things that brokers can count on from their partnership with GFLS, no matter what.

To name a few of the most meaningful…

We know your customers and vendors are yours, not ours. Therefore, we would never build a one-on-one relationship with them, and our team politely refers all direct calls and inquiries back to you.

We know your response times are dependent on ours. Our team responds quickly to you, so you can do the same for your customers. The majority of time, we make decisions within 24 hours.

We help you say yes more often, when other lenders say no. GFLS finances B- and C-tier credit types and startups in a variety of industries, including healthcare/medical, restaurant, construction, machinery/manufacturing, forestry/logging and automotive. We look at an applicant’s “story” to get the whole picture, not just the credit score and other numbers.

READ: You Need to Package Your “Story Credit”

We stand by our decisions, so you can stand by your word. Nothing’s worse than having to back out of a deal at the last minute. GFLS will not pull funding based on information we had from the beginning.

Remember, GFLS was founded in 2008 during the Great Recession. Your customers are more than a credit score—that’s what we focused on then, and what we continue focusing on as we navigate this pandemic together. Don’t disregard a potential deal because the numbers aren’t there. Send it to GFLS, and let’s work through it.

Contact us to see how we can help.

Loans now available to Arizona small businesses hit hard by coronavirus

by Industry News

Arizona small businesses hurt by the coronavirus pandemic can apply for up to $2 million each in loans from the U.S. Small Business Administration now that the agency has accepted the state’s disaster declaration request. 

Arizona’s Economic Injury Disaster Loan declaration was approved by the SBA on Thursday after Gov. Doug Ducey submitted a letter requesting federal assistance on March 16. 

“Business across the state have already experienced significant economic losses and are anticipated to continue to lose revenue due to this pandemic,” Ducey said in his letter.

Businesses can apply for loans through the SBA website at SBA.gov/disaster.

The normal loan processing time for the loans is around three weeks, according to Jordan Ripley of the SBA’s Arizona District Office.

Ripley said there is no limit to the total amount available to Arizona business, but individual borrowers can be approved for up to $2 million. 

The loans may be used to pay fixed debts, payroll, accounts payable and other expenses impacted by COVID-19. Interest rates are 3.75% for small businesses without other credit options and 2.75% for nonprofits. Long-term repayment options up to 30 years are available, with terms determined on a case-by-case basis, based on each borrower’s ability to repay, according to the SBA. 

“Without a doubt, these tough times will take a significant toll on our economy and the livelihood of working men and women throughout the state,” said Chad Heinrich, Arizona State Director of the National Federation of Independent Business, in a statement. “This relief will go a long way to repair the damage done and protect Arizona families.”

Debbie Hann, chief operating officer of the Arizona Small Business Association, told the Business Journal her organization is just beginning to hear from people starting the application process and is ready to connect business owners to resources that can help if needed. 

She said that a byproduct of the coronavirus crisis has been that various agencies and groups are working together to help businesses navigate the difficulties. 

“We are truly wanting to help the small businesses,” she said. “It’s really a team effort for all of us.”

The SBA loans are available through the Coronavirus Preparedness and Response Supplemental Act signed by President Donald Trump on March 6.

Monitor

Concern Rises as Small Businesses Borrow from Unregulated Online Lenders

by Industry News

DEC 31, 2019 – 7:00 am

The Wall Street Journal reported that small businesses continue to borrow from unregulated online lenders, raising concerns about “sky-high” rates and other costly terms.

In 2019, one-third of small businesses applied for a loan, up from 19% in the previous year, according to research from the Federal Reserve.

The Journal reported that tech-enabled lenders are meeting the needs of small businesses that banks are unable to serve, but often at the detriment of the borrowers who are often unable to repay their debts.

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READ:  There are Equipment Leasing Finance Companies, and There are Partners

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ELFF: Nearly 8 in 10 End-Users Acquire Equipment Through Financing

by Industry News

According to the 2019 Equipment Leasing & Finance Industry Horizon Report released by the Equipment Leasing & Finance Foundation, approximately 79% of businesses rely upon financing for at least part of their equipment and software purchases.

In a recent article, Monitor Daily summarized the 2019 report, which gives key industry performance data as well as a detailed analysis of recession risk.

You can read the full article from Monitor Daily here, and view the 2019 Equipment Leasing & Finance Industry Horizon Report released by the Equipment Leasing & Finance Foundation here.

Wood processing factory

The Role of Financing in the Forestry & Logging Industry

by Benefits of LeasingIndustry News

Although wood is used for a wide variety of products (crates, boxes, paneling, cladding, furniture, guitars, drum shells, frames, sports equipment, ladders, firewood, windows, doors, cabinets, shelving, and entire homes), and it seems as though construction is going on constantly, the logging industry can be surprisingly slow at times. And, when the demand for wood becomes too slow, many logging business owners find themselves having to sell equipment or are unable (financially or logically) to renew their logging equipment leases.

But, like any industry, the demand for logging goes up and down. There is seasonality to need, and when need becomes high, logging business owners can find themselves scrambling to find logging equipment again.

Having proper logging equipment such as delimbers, harvesters, loaders, logging trucks, processors, excavators, feller bunchers, forwarders, skidders, yarders, etc. is extremely important to a logging business if it is to meet demand regardless of market fluctuations.

The problem some logging company owners who need equipment when demand is high is that when the industry picks up again, they may run into problems when trying to secure leasing. Reasons could involve lack of longevity in business or not having the data and information that most leasing or lending companies or big banks require.

READ: What Lenders Want to See in a Business Plan Before Approving Your Equipment Financing Application

However, it’s possible to get lease financing for logging equipment if you know where to look.

Companies, like Global Financial & Leasing Services (GFLS), help owners of small- to medium-sized logging businesses acquire leasing for logging equipment in order to meet their customers’ needs when the demand for wood is high. Whether you need just one piece of machinery or a whole new fleet, lease financing for logging equipment is often the wisest choice because you can use the leased equipment to make a profit, which can amount to far more than the lease payment itself. If you purchase the equipment outright, your cash will be tied up in it.

With lease financing for logging equipment, business owners have the machinery to do the jobs without committing to a big purchase, and can change the equipment out for newer models when necessary, which will help them surpass their competitors who may be operating with older, less productive equipment that can become more expensive to operate in terms of maintenance.

Whether you’re looking to lease just one piece of logging equipment, you want to replace outdated or broken machinery, you want to expand your operations, or you want to get your hands on a new piece of equipment to have an advantage over your competitors, lease financing for logging equipment is a great way to obtain essential equipment while maintaining cash reserves.

At Global Financial & Leasing Services, we have expertise in the field of logging and forestry equipment financing, and we would love to help you start or expand your business. With us, you don’t need to provide a large down payment, and we are known in the industry for working with business owners who have a less-than-perfect credit.

If you’re interested in lease financing for logging equipment, please don’t hesitate to contact us.