What to Do When Your PPP Money Runs Out

What do businesses do when their PPP or Payroll Protection Program funds run out? While small companies can apply and receive relief, that money is only finite. It will go just so far before it’s gone. And, once it’s gone, it’s gone for good. Even organizations with business interruption insurance benefits have limited resources. Eventually, the cash will run out. So, what do small businesses do then?

PPP Loan Forgiveness Only Solves One Problem

It’s important to remember that PPP loan forgiveness — while most certainly helpful — merely solves one problem. Meaning, there are still other debts and obligations to pay and to meet. That alone reveals the fact there’s a lot more to doing business than just compensating employees. Vendors, contractors, and others also need to be paid.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. —U.S. Small Business Administration

This gets to the heart of the larger issue — the inescapable reality of the business world. Put another way, if someone paid off one of your personal debts and you had five, six, or ten more, while that’s a blessing and it’s appreciated, it does not get you totally out of debt. Businesses don’t operate that way because there’s always additional obligations.

What to Do When Your PPP Money Runs Out

Since businesses stay in a cycle of dynamics, with revolving credit and monthly bills, and they apply and receive PPP money, what can they do once those funds are gone? Here are a few suggestions that might prove helpful to your business:

  • Offer invoice financing. Instead of requesting (or demanding) the entire invoice amount to be paid, give them the option to finance their outstanding balances. You can charge a small fee and/or interest rate — so long that it’s legal and ethical.
  • Ask suppliers for extensions. For businesses that owe other businesses money, it’s worth a shot to ask for some more time or at least try to establish payment arrangements. This will help to take off a little pressure and to free up some cash.
  • Review personnel staffing choices. Most businesses already have or will soon, be forced into this scenario — assessing which team members aren’t essential. It’s a tough spot but because employees most always represent the largest expense, this can’t be ignored.
  • Consider liquidation or selling equipment. Another thing you can do is to sell off non-essential equipment, if available. Or, liquidate some inventory or materials. These are all difficult decisions but they could mean the difference between staying in business and going out of business permanently.
  • Offer new services that are in demand now. Look at what services are in demand now that may be in line with your service offerings or a close extension thereof to provide immediate cash flow. Quickly shift to provide those services by promoting them to your current customer base and use social media to get the word out. Several industries and businesses have done this in recent weeks.

What other suggestions do you have? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Store illustration

I Have New Competition that’s Eating into My Sales, What can I Do

A new competitor just opened down the street, and you’re watching your sales start to slip. It’s an unsettling feeling, but panic is exactly the wrong response—new competition can actually be a sign of opportunity, not doom. Here are three practical steps to take stock of the situation and protect the customer base you’ve already built.

Read More »
Waters Business Consulting graphic

5 Ways to Make Customers Feel Like Your Only Customer Again When You Fall into the Big Client Trap

Every small business owner dreams of success. Smart entrepreneurs know the best way to achieve their goal is through excellent customer service, delivering the best products and services with a positive attitude. But somewhere along the way, the hustle and bustle become a daily reality, and suddenly the personal touch and familiar feeling that comes with it are gone. And when customers don’t feel the same connection, they begin to feel like just another number, which spells nothing but T-R-O-U-B-L-E with a capital “T.”

Read More »

How Gomez Tire Grew Revenue 60% While Bracing for Tariff Pressure

.elementor-widget-text-editor{font-family:var( –e-global-typography-text-font-family ), Sans-serif;font-weight:var( –e-global-typography-text-font-weight );color:var( –e-global-color-text );}.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:var( –e-global-color-primary );}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap, .elementor-widget-text-editor.elementor-drop-cap-view-default .elementor-drop-cap{color:var( –e-global-color-primary );border-color:var( –e-global-color-primary );} A Family Tire Business Ready to Scale By 2022, Gomez Tire had outgrown the systems that got it there. Demand was climbing, the shop floor was full, and co-owners Alex and Robert Gomez knew that raw hustle alone wouldn’t get them to their next milestone: a $5.2 million revenue target by 2025. What they needed wasn’t more hours in the day — it was a stronger operational foundation. “Hiring John and his team has been a game changer for our company. Their expertise and guidance over the last year has helped build a stronger foundation for the future growth of our company. They have been extremely helpful in developing practical operation strategies that have been helpful and effective. More importantly, they have provided us clarity on our operations like we’ve never had before.” — Alex and Robert Gomez, Co-Owners, Gomez Tire Growth That Outpaced Its Own Infrastructure Gomez Tire, a Phoenix-area tire and automotive services company, engaged Waters Business Consulting Group in 2022 during a period of rapid growth that was beginning to strain cash flow and operations. The brothers were juggling pricing decisions without full visibility into margins, uncertain about their true break-even point, and stretched thin trying to run day-to-day operations while also thinking strategically about the business’s future. Beyond the numbers, growth was creating people problems. The team needed clearer expectations and more consistent communication, and the company was short a commercial technician just as demand for larger commercial accounts was increasing. On top of it all, tariff-driven cost increases on tires loomed on the horizon, threatening to squeeze margins further unless the company got proactive about inventory and purchasing. Building Structure Around the Growth Waters Business Consulting Group worked with the Gomez brothers to build the financial and operational scaffolding their growth demanded. That started with a rigorous look at historical financials and the construction of forecast models that gave the owners, for the first time, real predictability around revenue and cash flow. From there, the engagement expanded into nearly every corner of the business: defining position descriptions and performance metrics so accountability wasn’t a guessing game, instituting regular team meetings to reinforce standards, and mapping out staffing needs — including the long-sought commercial technician — to match the pace of growth. On the inventory side, WBCG helped the team think proactively about tariff exposure, guiding decisions to sell down existing stock and plan inbound containers strategically rather than reactively. The consulting relationship also touched harder, more personal decisions. WBCG helped facilitate family conversations about roles and accountability, evaluated whether a satellite location was still financially justified, and analyzed the financial case for a move into a larger facility — one with the warehouse and shop space to support the business the Gomez brothers were building. The Results: Real Growth, Real Margins The numbers tell the story. From 2020 to 2022, Gomez Tire’s revenue grew roughly 36% while gross profit jumped about 63%, a sign that the business wasn’t just getting bigger — it was getting healthier. That momentum continued: by 2022 the business was generating $2.50 million in revenue and $914,000 in gross profit at a margin near 36%. Two years later, in 2024, revenue had climbed past $4.0 million and gross profit had grown to roughly $1.7 million, including nearly 30% year-over-year growth from 2023 to 2024 alone. Along the way, the team closed an underperforming satellite location to sharpen focus on central operations, captured an $80,000 tire order through a national vendor relationship, and rolled out a new operations app to modernize day-to-day workflows. Just as importantly, the Gomez brothers now have a financial model that tells them where the business stands — and where it’s headed — instead of navigating growth by instinct alone. Ready to Build Your Own Growth Plan? Rapid growth can feel like a good problem to have — until it strains your cash flow, your team, and your sanity. If your business is scaling faster than your systems can support, a fresh set of eyes can help you build the structure to grow profitably and sustainably. Contact Waters Business Consulting Group to schedule a free consultation.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.