Ask an Expert: How should small businesses prioritize payments?

Digital Now

COLORADO SPRINGS — FOX21 Digital NOW is taking your coronavirus concerns directly to the experts, to get your lingering questions answered.

A FOX21 viewer sent in a question regarding best practices for small business owners:

“How do small businesses prioritize payment, such as payroll, rent, and SBA loans, when consumer confidence might be lower than before?”

FOX21 turned to Aikta Marcoulier, executive director of the Pikes Peak Small Business Development Center, for the answer.

According to Marcoulier, it’s a tough question to answer without saying, “it depends.” Each business needs to weigh their payments, find out which ones can be deferred, which ones can be covered by loans such as the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan Program (EIDL). The overall financial health of businesses is the number one priority. Businesses need to ask, “can I make it through with all these payments with the understanding that we really don’t know what consumer behavior will look like?” Sometimes the right, but tough decision, is to shut down. Many times the business wasn’t doing well and didn’t understand their cash flow in the first place. Other businesses, take for example Randy Price, who owns a number of restaurants like Urban Egg, and Todd Baldwin, who owns Red Leg Brewing, utilized the PPP to have diversified methods of product delivery and are going to be able to make payments using the PPP to move forward. 

Click here to learn more about small business guidance and loan resources.

Do you have a question for an expert?

Send it to askanexpert@kxrm.com and check back with FOX21news.com for the answer.

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