Acronis #CyberFit Financing: Helping Small Businesses and Partners During the COVID-19 Crisis
The COVID-19 pandemic is first and foremost a medical challenge, but the impact that social distancing and self-isolation are having on small businesses can’t be ignored. With suggested (and in some cases, compulsory) business closures being used to contain the coronavirus, it’s no wonder three out of four small businesses report that they are very concerned about the economic fallout of the outbreak.
Countless small businesses rely on Acronis solutions and many of our service provider partners are themselves small businesses, so we are acutely aware of how the steps needed to contain the virus are also severely affecting our customers, our service provider partners, and the clients they serve.
In response, we are partnering with lenders from around the globe to launch Acronis #CyberFit Financing to provide a much-needed financial safety net.
Financial aid for small businesses
To be clear, Acronis is not getting into the financial services industry. What we are doing is connecting partners and customers with the resources that can help them access the funding they need to face today’s uncertain conditions.
Nearly 50% of small businesses have already reported a drop in customer demand, which creates a drop in their revenues, followed by the inability to pay the bills. Economists and world leaders understand that spiral will seriously cripple any recovery that will happen after the virus is contained. In response, many governments are authorizing financial relief programs.
With Acronis #CyberFit Financing, we plan to join with multiple lenders all around the world to connect service provider partners and customers with those aid programs.
The CARES Act
Part of the U.S. package, the Coronavirus Aid Relief and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn.
Called the Paycheck Protection Program (PPP), it offers loans that are 100% federally guaranteed. These loans can cover two-and-a-half times the borrower’s average total monthly payroll, up to $10 million. Lenders will ask for good faith certification that the current crisis makes the loan necessary for borrower’s business to continue operating and that the loan will be used to retain employees, maintain payroll, or make payments for mortgage, lease, mortgage interest, utilities, equipment leases, etc.
Perhaps the most important aspect of the program is that the loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
To be eligible, borrowers must be:
- a small business or registered nonprofit that employ fewer than 500 people (or otherwise meets the SBA’s size standard)
- an individual who operates as a sole proprietor or who operates as an independent contractor
- a self-employed individual who regularly carries on any trade or business
Powered by Lendio
To help service provider partners and customers take advantage of the loans available from the CARES Act, Acronis #CyberFit Financing is working with Lendio, the top online marketplace for small business lending.
A trusted partner of Acronis, Lendio provides a consolidated view of a borrower’s loan options in one place. After completing a 15-minute application, the borrower gains the help of a personal funding manager who helps find the best loan option for that small business. Typically, financing can be completed in as little as 24 hours after approval.
U.S. partners and customers can find more details and apply for Acronis #CyberFit Financing through the Acronis website beginning April 1. We’ll announce the lenders in other regions as those partnerships are finalized.
Standing by partners and customers
Having provided cyber protection and disaster recovery solutions for 17 years, Acronis has seen how the major disruptions can devastate small businesses. Following a natural disaster, 40% of small businesses fail – and with the COVID-19 pandemic, the impact will be the same.
The extreme financial hardships brought on by this outbreak will continue, yet service providers play a particularly vital role in maintaining the IT operations of the small business community, as well as hospitals, medical facilities, and other organizations critical to the response efforts.
Acronis will continue to stand by our partners and customers, and hope Acronis #CyberFit Financing can help minimize the business impact of the coronavirus outbreak.