HIGH POINT — While the current pandemic and attendant economic disruption is a challenge, it also presents companies with unique opportunities heading into 2021 if they’re willing and in position to capitalize. That was the message of Gene Marks, author, columnist and president of The Marks Group, addressing attendees at Furniture Today’s all-digital Bedding Conference.
Marks noted that there is and will be unprecedented access to funding , telling attendees, “Never have I seen so many funding options for businesses that are available now and for so cheap, if you want to go and get some money to expand or even to survive.”
As one example, he cited a second round of the Paycheck Protection Program, anticipated to pass by Sept. 30, and noted that companies with loans below $2 million will effectively have those loans forgiven. Other options he cited include $60 billion in Economic Injury Disaster Loans, tax deferrals and the Employee Retention Tax Credit and the Main Street Lending Program, among others.
The downturn has also put a large number of highly skilled workers into the marketplace, making this a great time for companies to strengthen their organizational talent pool. Marks also noted that, for those looking at M&A opportunities or even looking to sell their business, this is a prime time to explore such opportunities.
With the pandemic forcing many companies to cut back or close, it has also put large amounts of equipment into the marketplace, enabling companies to purchase at deep discount. Marks also encouraged companies to explore renegotiation of leases, noting that the current climate gives tenants unprecedented leverage as demand for commercial real estate is approaching historic lows.
Looking ahead Marks said he anticipates inflation to rise in the coming year and advised attendees to lock in supply and employee agreements, lock in long-term interest rates and commit to longer term leases as a means of capturing lower rates at a time of enhanced leverage.
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