Students seeking music lessons remain stable despite the pandemic. This article mentioned that, music schools need to have major adjustments to be able to deliver quality lessons via online classes. Thus, music schools and music teachers need to shell out a hefty amount for technology adaptation. Good thing the government has provided lending opportunities for small to medium entrepreneurs with a good credit score.
Although music school may not be absolutely affected by the pandemic, the transition to online teaching poses great challenges. New sets of technology must be implemented with additional expenses which are not anticipated in your fiscal budget.
Moreover, not being able to adapt to these new sets of technology can mean the demise of your business. This challenge will lead you to another problem—getting the needed budget. As a response to the small enterprise problem, the Federal government implemented the CARES Act.
The CARES bill launched the Paycheck Protection Program. It is now on its second tranche. If you haven’t applied for PPP on its first launch in April 2020, you can still apply for the second one. The PPP is the federal government’s response to the COVID-19 emergency. It is a small business loan program for small owners such as your music school which includes but is not limited to music teachers.
You can apply for a PPP business loan via any accredited small business administration (SBA) lender or via any depository institution or credit union that is federally insured. If you have 500 or fewer employees, your music school is eligible for the loan. To apply for the loan, you need to fill out the application form and submit it with the required documents. This program expires on May 31, 2021.
Among many other industries, funding for music schools is not easy to come by because most lending institutions will not prioritize your school. Others will find it risky to give you a business loan as the COVID-19 economic crisis continues because of the nature of your business. To be able to get the funding you must have a good credit score. A credit score tells you if your business will get approved in a business loan.
For other funding options, you can look for the following suggestions below.
- The SBA 7 Loan Program
This is one of the smartest choices for a small business such as a music school. It has a long reputation for having low rates, long terms, and low monthly payments.
- The SBA 504 Loan Program
This program can cover 50% of your modernization or expansion costs. It is advisable for small to medium enterprises.
- The SBA Microloan Program
Your music school needs to qualify as a microbusiness or very small business to get their attention. They grant loans up to 50,000 dollars.
- Non-SBA Loans and Other Funding Options
If you don’t qualify for SBA, your other option is Non-SBA. However, this gives you higher rates, shorter terms, and larger payments.
Despite your circumstances as a music school, market studies show that the demand for music education among children and adolescents has grown steadily.Getting a business loan can help take your music school to another level.