Small Business Loans for non-US companies
Last updated: April 28, 2020
FareHarbor has created the following resource for clients that may be seeking financial assistance as a result of the Coronavirus Pandemic. With various sources of information across the internet, we have compiled what we believe will help give you a head start in finding a solution for your business to weather the unexpected decline in reservations.
Please Note: FareHarbor is providing the following information as a resource to help guide your business during this crisis. Before taking a grant or a loan, it is advisable to consult with your tax advisor and legal counsel. This information is not intended to be direct advice of any kind.
Should I apply for a loan?
There are many loan options available, but before you jump into applying for financial support, it is important to remember that you will need to pay back this money should you not be eligible to convert this loan to a grant longer-term. A loan today for the same expenses that you have incurred previously could affect your cash flow long-term, especially if you anticipate lower volumes than your typical season.
This article from Harvard Business Journal gives great information on some initial steps to take as a result of the Coronavirus Pandemic.
Carefully review your current situation to evaluate if there are alternative solutions for your business. Talk to your fellow tour operators for advice, your accountant and/or lawyer and review Compass for actions that you can take to improve your online presence and receive more bookings as soon as possible. If, after looking at your financial situation and cutting unnecessary costs you still are in a dire financial position, consider applying for a loan.
In addition, it is important to evaluate any loans that you have taken out in the past and other loan prerequisites to ensure that you will qualify. See “How Do I apply for a Loan?” for more information.
Keep in mind that loan terms, qualifications, and other factors will vary depending on which country and/or region in which you operate. In general, keep in mind the following questions as you research additional information:
- Are you eligible for the support you are applying for?
- What will lenders be looking for in your application?
- How much can you borrow?
- Is this loan eligible to be forgiven?
What types of schemes or loans are available in my country?
We have consolidated various options that our Partners may be eligible for, depending on their home country. Information for the EU is below. To see the full list of options available by country (including countries in the APAC region), click here. Please note that this document will open in a new tab.
Countries in the EU
EU State aid rules enable Member States to take efficient and effective action to support citizens and businesses facing economic difficulties due to the Coronavirus Pandemic. For more information, click here.
Some of the EU approved plans are:
- €300 million Luxembourg scheme
- Italian State guarantee scheme
- UK schemes
- €130 million Danish guarantee scheme
- €1.2 billion French “Fonds de solidarité” scheme
- €20 billion Spanish guarantee schemes
- German direct grant scheme
- €3 billion Portuguese guarantee schemes
Approved plans in APAC
The governments in Australia, New Zealand and the Asia Pacific region have taken action in passing legislation designed to support small businesses during the economic instability brought on by the Coronavirus Pandemic.
Some of the APAC approved plans are::
- Australian Government Economic Stimulus Package
- Australian Government Support for sole traders
- New Zealand COVID-19 Wage Subsidy Scheme
- New Zealand Tax Relief
- Singapore MAS & Financial Industry measures
- Singapore Together Enhancing Enterprise Resilience (STEER) Programme
How do I apply for a loan?
Each lender has a unique set of requirements and underwriting guidelines. If you have never taken out a Small Business loan, they will consider how long you have been in business, annual revenue, your ability to pay back the loan, your personal credit score, and whether or not you have filed for bankruptcy or have liens on your personal property or business, among other factors. They will likely require both business and personal tax returns, bank statements, business tax ID number, social security numbers and IDs of all owners/stakeholders.
If you have taken out a business loan in the past, lenders will also take this into consideration, and potentially restrict you from receiving a new loan as it is important that you are able to pay back your existing line of credit before receiving an additional loan.
Please contact the lender directly for exact instructions.