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Real Estate News

Use Construction Loans to Adapt Your Business to the New Normal

Written by Erick Copello
Tuesday, October 27, 2020

The COVID-19 pandemic has modified the way businesses serve their clients. Drive-thru windows and delivery services are emerging as feasible solutions to comply with quarantine measures while avoiding a complete shutdown of the business activities.

But adapting to the new normal may require some renovations to comply with safety protocols. That’s when construction loans can help in securing the funding needed to perform them. Think about it! A business that offers safety measures will attract more customers in, and thus, increase sales.

Which Renovations Do Businesses Require Under the New Normal?

It is still difficult to say for how long we will have to deal with the virus as a potentially life-threatening disease. The timeline provided by experts in terms of how long it will take to get a long-term solution varies from six months to as long as two or three years, so renovations as the following are very much needed.

Social distancing

According to the Centers for Disease Control, social distancing protocols can reduce the number of virus-related hospitalizations by at least 78% for all age groups.

Given the impact of this prevention method, businesses should focus most of their efforts on redesigning their premises to enforce social distancing. This may include relocating or reducing the number of booths in a restaurant, or the number of seats in movie theaters.

Meanwhile, stores and retail establishments may have to rethink their layouts so that customers follow a specific predefined path when shopping to prevent them from getting too close to each other.

Temperature checks and sanitization areas

Businesses can set up sanitization booths and checkpoints at the entrance of their establishment to prompt customers to soak their shoes in an antibacterial solution while getting their temperature checked and their hands cleaned with hand sanitizer.

It is essential to follow the guidelines provided by health authorities to set up these checkpoints adequately. If you need financing for these expanses, construction loans can help you in building and equipping these booths.

Production-area modifications

Whether it is a restaurant or an industrial facility, the premises in which workers produce the goods offered by the business have to be redesigned, at least temporarily, with social distancing in mind.

For example, specific machinery may have to be moved, and tables, shared spaces, and assembly lines may have to be relocated or temporarily decommissioned to ensure safeness. These renovations can be fulfilled with a construction loan so business owners can preserve their much needed organic cash flow.

Office space

Encouraging employees to get back to the office is perhaps one of the biggest challenges, as many still fear that the office space is an unsafe place to be.

In this regard, if working from home is not an alternative for the employer, the office space must be redesigned to comply with social distancing protocols by reducing the number of work stations. Offices will also have to set up sanitization booths and temperature checkpoints at the entrance, and all the equipment shared by the staff will have to be cleaned more regularly. It would be a good idea to buy additional printers and copiers.

Construction loans can finance these investments as part of a larger project to get offices ready to receive workers once again.

How Much Do These Renovations Cost?

The cost of renovating a business or a workspace varies depending on the extent of the project. Small changes made to a store may cost a few thousand dollars while renovating a factory could result in hundreds of thousands of dollars.

Regardless of how much the cost of the project is, construction loans can provide the funds required to complete them.

Certain construction loans, such as those secured by the Small Business Administration (SBA) in the United States, can finance up to $5 million, with a repayment period of between 20 to 25 years. Others provided by financial services firms, such as Camino Financial, can provide up to $400,000, with the repayment period up to 18 months.

A helping hand

Now more than ever, creating a safe environment and ensuring people’s safeness when they visit, shop, or work at the company’s premises has to be a priority for business owners. This has to be part of their strategy to survive the economic turmoil caused by the coronavirus.

But entrepreneurs are not alone. Construction loans can provide the funds needed to perform renovations at an affordable interest rate and with long-enough repayment periods to ensure these investments can result in higher sales and foot traffic.

If you are looking to acquire one of these loans, do your homework! Investigate at least three institutions and compare their offerings before accepting one, taking into consideration the loan amount, interest rate, fees, time to pay, terms, and requirements.

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